Alange Energy Announces Update on Internal Review Process, a Production Update and Appointment of New Director
07 März 2011 - 1:30PM
PR Newswire (Canada)
TORONTO, March 7 /CNW/ -- TORONTO, March 7 /CNW/ - Alange Energy
Corp. (TSXV: ALE) announced today an update on its internal review
process, which is still ongoing: -- The Company has terminated,
without liability or further obligation, the "pipeline without a
pipe" strategy for the direct export of its oil to the "Cartagena
Oil Export Platform" which did not prove to be cost effective given
the Company's current or anticipated levels of production. This
platform included a sales agreement with Arcadia Petroleum Limited
and Colombiana de Distribucion y Servicio CI S.A ("Codis") and
three-year contracts with each of Transporte Sanchez Polo S.A. for
the trucking of oil and with Codis for storage and port handling
services in Cartagena. The Company has implemented a more
conventional marketing contract with Pacific Rubiales Energy Corp.
to significantly improve its netback per barrel, relative to the
previous Cartagena Oil Export Platform, by selling its crude oil
from Cubiro into the international market under a straightforward
FOB ("Freight on Board") pricing model, without a minimum load
requirement, through multiple delivery points to the existing
Colombian pipeline infrastructure. -- Management has continued to
take steps to reduce the Company's ongoing G&A. To date, staff
reductions include 10 senior managers, 20 support staff and 19
technical consultants. The Company has also cancelled the contract
of a local public relations firm in Colombia. Management is
continuing to review other contracts and activity-based spending to
identify further cost savings. -- To date, the Company has repaid
$9 million of its long-term debt and is currently in the process of
finalizing repayment of a further $22 million of credit line
borrowings and long-term debt. The funding for these debt
repayments was provided through the recently completed C$70 million
equity financing. By the end of March, the Company expects to have
only one long-term debt facility of approximately $12 million
following the debt repayments. -- The Company's share of
production, before deduction of royalties, averaged 2,374 barrels
of oil equivalent ("boe") per day in December 2010. The Company's
production averaged 2,181 boe per day and 2,310 boe per day for
January and February, respectively. Production at Cubiro during the
first two months of 2011 has been impacted by trucking disruptions
affecting many of the operators in the Llanos Basin. Oil represents
approximately 88% of the Company's total share of production
(before royalties) through the first two months of 2011. -- The
transfer of operatorship of Topoyaco to Pacific Rubiales Energy
Corp. was completed and did not result in any payment or
compensation. Although no longer the operator, Alange Energy
retains its full economic interest of 50% in the block. Further,
the Company is pleased to announce the appointment of Mr. Ian Mann
as an independent director to its board, effective immediately. Mr.
Mann is currently the President of Meridian Fund Managers Ltd., a
BVI-registered fund manager that oversees two alternative
investment funds primarily focused on global mining and oil and gas
companies. Prior to 2003, Mr. Mann held senior management and
partner positions with several Bermuda-based companies. He
has over ten years of corporate governance experience as a
non-executive Director of two Canadian-listed mining companies,
L.G.R. Resources Inc. and Franc Or Resources Ltd. He holds an
Honours Business Administration degree from The University of
Western Ontario. Mr. Mann joins the board to replace Mr. Boris
Abad, who resigned on February 10, 2011; the appointment of Mr.
Mann remains subject to regulatory approval. The Company will be
releasing its fourth quarter and year-end results on April 28,
2011. An updated reserves report, prepared in accordance with
National Instrument 51-101, will be issued in conjunction with the
financial results. It is expected that the internal review process
will continue, and be concluded, by this date. 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 Energy"). 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 Energy; 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 Energy
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 Energy 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 Energy 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. To view this news
release in HTML formatting, please use the following URL:
http://www.newswire.ca/en/releases/archive/March2011/07/c8226.html
pBelinda Labattebr/ Investor Relations Representativebr/
416-436-2152/p
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