Revised: Alange Energy Announces 82% Increase of 2P Net Reserves in Cubiro
TORONTO, Aug. 9 /CNW/ - Alange Energy Corp (TSXV: ALE) announced today that it has received an independent reserves and resource evaluation report dated June 30, 2010 (the "Petrotech Report" or the "Report") prepared by Petrotech Engineering Ltd. ("Petrotech") of Burnaby, British Columbia, relating to the current resource base in Cubiro, an oil and gas exploration and production property located in the Llanos Basin of Colombia. The combined proved plus probable ("2P") reserves for this block increased by 2.11 million barrels of oil ("MMbbl"), or 82%, compared to those reported in December 2009, which amounts to a gross (before royalties) total to the Company of 4.68 million barrels of oil ("MMbbl"), having a total net present value ("NPV") (10% discount, before tax) of US$146.7 million. The Report also reflects a 54% increase in gross proven reserves ("1P") to a total of 2.56 MMbbl.
These additional reserves are the result of recent geological and reservoir evaluations, stemming from the drilling campaign during the past six months, in which two active rigs have drilled 6 wells.
Luis E. Giusti, the Company's Chief Executive Officer, commented: "With every step taken in Cubiro, we have a better interpretation of the endless possibilities of increasing recovery, by improving the exploitation schemes of the reservoirs."
The Petrotech Report provides the following summary of the Company's total proved, probable, and possible reserves and prospective resources and future net revenue, discounted at 0%, 5%, 10%, 15% and 20%, before income tax, from its interests in the Cubiro block:
Reserves:
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L & M Oil Reserves Mbbl
100% Gross Net
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Proved Developed Producing 2,064 1,154 1,061
Proved Developed Non Producing 464 116 107
Proved Undeveloped 2,810 1,295 1,192
Total Proved 5,339 2,565 2,360
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Probable 4,268 2,111 1,942
Total 2P 9,607 4,676 4,302
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Possible 2,879 720 662
Total 3P 12,486 5,395 4,964
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NPV of Future Net Revenue
Before Tax Discount in $M
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0% 5% 10% 15% 20%
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Proved Developed Producing 49,850 43,461 38,658 34,935 31,967
Proved Developed Non
Producing 5,282 4,581 4,028 3,585 3,223
Proved Undeveloped 48,597 43,098 38,524 34,676 31,397
Total Proved 103,729 91,139 81,211 73,195 66,587
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Probable 91,074 76,405 65,484 57,053 50,352
Total 2P 194,803 167,544 146,695 130,248 116,940
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Possible 29,568 24,294 20,273 17,151 14,684
Total 3P 224,370 191,839 166,967 147,399 131,624
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Reserves Comparison of Petrotech Reports (June 2010 vs. December 2009):
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2P Reserves comparison of Petrotech Reports
L & M Oil Reserves Mbbl
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As of June As of December Variation
2010 2009 of 2P
Reserves
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Gross Net Gross Net Gross
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Proved Developed Producing 1,154 1,061 740 681 414
Proved Developed Non
Producing 116 107 0 0 116
Proved Undeveloped 1,295 1,192 925 851 370
Total Proved 2,565 2,360 1,665 1,532 900
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Probable 2,111 1,942 906 833 1,205
Total 2P 4,676 4,302 2,570 2,365 2,106
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Prospective Resources:
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L & M Oil Resources Mbbl
100% Gross Net
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Estimate
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Low 196 137 126
Best 4,047 2,833 2,606
High 13,977 9,784 9,001
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NPV of Future Net Revenue
Before Tax Discount in $M
0% 5% 10% 15% 20%
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Estimate
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Low 2,103 1,827 1,599 1,411 1,252
Best 114,820 95,044 79,937 68,154 58,784
High 401,347 329,743 274,630 231,551 197,337
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The new reserves report is entitled: "Evaluation of the Interests of Alange Energy Corp. in Cubiro Block in the Llanos Basin, Colombia", and it has been filed and is available for review on www.sedar.com and on the Company's website. 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.
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.
Reserves are classified according to the degree of certainty associated with the estimates. Proved reserves are those reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves. Probable reserves are those additional reserves that are less certain to be recovered than proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated proved plus probable reserves. Possible reserves are those additional reserves that are less certain to be recovered than probable reserves. It is unlikely that the actual remaining quantities recovered will exceed the sum of the estimated proved plus probable plus possible reserves.
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.
CAUTIONARY STATEMENT
By definition of the COGE Handbook - "Undiscovered resources are those quantities of oil and gas estimated on a given date to be contained in accumulations yet to be discovered." Further the Handbook states - Caution (per NI 51-101/5.9(2)(v)(B)) - "There is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources." In addition, per NI 51-101/5.6 "the estimated values disclosed do not represent fair market value."
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.
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: Jose Luis Acevedo, Executive Vice President, 416-360-4653
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