Reissued with Petrotech correction of typo: Alange Energy files independent
reserve and resource assessment for eleven Colombian oil and gas properties
on SEDAR; Topoyaco prospective resources increased by 19.3 million barrels
TORONTO, July 30 /CNW/ - Alange Energy Corp. (TSXV: ALE) announced today the re-filing of the company's most recent independent reserve and resource assessment report dated as of April 30, 2010 (the "Petrotech Report" or the "Report") prepared by Petrotech Engineering Ltd. ("Petrotech") of Burnaby, Canada, relating to the current resource base of Alange Energy, in eleven oil and gas exploration and production properties in four basins in Colombia. In the press release dated July 28, 2010, a typo in the Petrotech Report was reproduced under the Possible Reserves table. This typo has been corrected by Petrotech and the revised Report has been filed with SEDAR (www.sedar.com).
The Petrotech Report reserve and resource estimates set out in this press release were prepared in accordance with the requirements of Canadian National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities. Capitalized terms related to resource classifications used in this press release are based on the definitions and guidelines in the Canadian Oil and Gas Evaluation Handbook ("COGEH").
"The new seismic in Topoyaco translated into significant increases in prospects B, C and D, in addition to the depiction of a new prospect E in the overthrust, for a total increase in resources in the block of 19.3 million barrels. Also worth noting, is an increase of 4.29 million barrels of liquids in P3," said the company's Chief Executive Officer, Luis E. Giusti.
The Petrotech Report provides the following summary of the company's net share of total possible and prospective reserves from eleven blocks in which it currently holds interests:
Possible Reserves
-----------------
Reserve L&M Oil Natural Gas Natural Gas
Category ------- ----------- Liquids
-----------
Gross Net Gross Net Gross Net
(Mbbl) (Mbbl) (Mbbl) (Mbbl) (Mbbl) (Mbbl)
------ ------ ------ ------ ------ ------
Possible 4,667 4,126 37,267 34,882 2,453 2,257
NPV of Future Net Revenue Before Tax Discounted (in M$) @
0% 5% 10% 15% 20%
-- -- --- --- ---
Possible Reserve 335,758 217,681 147,998 104,403 75,728
Prospective Resources
---------------------
Estimate L&M Oil Resource
100% Gross Net
(Mbbl) (Mbbl) (Mbbl)
------ ------ ------
Low 101,810 35,947 33,486
Best 239,412 108,885 100,617
High 539,671 246,067 225,304
Estimate NPV of Future Net Revenue Before Tax Discounted (in M$) @
0% 5% 10% 15% 20%
-- -- --- --- ---
Low 1,721,937 1,285,620 988,151 777,620 623,609
Best 5,244,086 3,905,168 3,031,348 2,430,421 1,998,201
High 17,540,154 13,396,398 10,615,915 8,655,959 7,217,112
Possible reserves are those additional reserves that are less certain to be recovered than probable reserves. It is unlikely that actual remaining quantities recovered will exceed the sum of estimated of proved plus probable plus possible reserves.
Undiscovered resources are defined as those quantities of oil and gas estimated on a given date to be contained in accumulations yet to be discovered. The estimated potentially recoverable portion of undiscovered resources is classified as prospective resources. Prospective resources are defined as those quantities of oil and gas estimated on a given date to be potentially recoverable from undiscovered accumulations. If discovered, they would be technically and economically viable to recover. However, there is no certainty that the prospective resources will be discovered. In addition, the following mutually exclusive Classification of Resources was used:
Low Estimate - This is considered to be a conservative estimate of the quantity that will actually be recovered from the accumulation. This term reflects a P90 confidence level where there is a 90% chance that a successful discovery will be equal or exceed this resource estimate.
Best Estimate - This is considered to be the best estimate of the quantity that will actually be recovered from the accumulation. This term reflects a P50 confidence level and is a measure of central tendency of the uncertainty distribution where the successful discovery will have a 50% chance of being equal or exceeding this resource estimate.
High Estimate - This is considered to be an optimistic estimate of the quantity that will actually be recovered from the accumulation. This term reflects a P10 confidence level where there is a 10% chance that the successful discovery will be equal or exceed this resource estimate.
The Petrotech Report also reported a prospective resource addition of a total of 26.89 MMbbl:
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PROSPECTIVE RESOURCES BEST ESTIMATE (MMbbl)
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Block Mar 09 Apr 10
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Cubiro(1) 1.02 -
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La Punta - 0.15
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Mecaya - 2.20
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Arrendajo 1.10 3.06
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Carbonera La Silla(2) 3.72 -
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Las Quinchas 17.37 17.77
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Santa Cruz 34.98 35.17
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Topoyaco 23.17 42.55
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Catguas 0.66 8.00
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Total: 81.99 108.88
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(1) Resources were categorized 2P following drilling and seismic results.
(2) Resources were categorized P3 following drilling and seismic results.
In addition, the Petrotech Report stated a new total P3 of 13.35 MMboe.
Petrotech has acted independently in the preparation of the Petrotech Report. Petrotech and its employees have no direct or indirect ownership in the properties appraised or the areas of study described in the report.
About Alange Energy Corp.
Alange Energy is a Canadian-based oil and gas exploration and production company, with working interests in 12 properties in four basins in Colombia. Further information can be obtained by visiting our website at www.alangeenergy.com.
All monetary amounts in U.S. dollars unless otherwise stated. This news release contains certain "forward-looking statements" and "forward-looking information" under applicable Canadian securities laws concerning the business, operations and financial performance and condition of Alange Energy Corp.("Alange"). Forward-looking statements and forward-looking information include, but are not limited to, statements with respect to estimated production and reserve life of the various oil and gas projects of Alange; the estimation of oil and gas reserves; the realization of oil and gas reserve estimates; the timing and amount of estimated future production; costs of production; success of exploration activities; and currency exchange rate fluctuations. Except for statements of historical fact relating to the company, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as "plan," "expect," "project," "intend," "believe," "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Many of these assumptions are based on factors and events that are not within the control of Alange and there is no assurance they will prove to be correct. Factors that could cause actual results to vary materially from results anticipated by such forward-looking statements include changes in market conditions, risks relating to international operations, fluctuating oil and gas prices and currency exchange rates, changes in project parameters, the possibility of project cost overruns or unanticipated costs and expenses, labour disputes and other risks of the oil and gas industry, failure of plant, equipment or processes to operate as anticipated. Although Alange has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Alange undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.
Statements concerning oil and gas reserve estimates may also be deemed to constitute forward-looking statements to the extent they involve estimates of the oil and gas that will be encountered if the property is developed. Boe may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf:1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Estimated values of future net revenue disclosed do not represent fair market value.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release
%SEDAR: 00005776E
For further information: Peter Volk, General Counsel & Secretary, 416-360-4653, ext. 223
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