ALANGE ENERGY ANNOUNCES FILING OF FIRST QUARTER 2011 RESULTS
30 Juni 2011 - 2:25PM
PR Newswire (Canada)
TORONTO, June 30, 2011 /CNW/ -- TORONTO, June 30, 2011 /CNW/ -
Alange Energy Corp. (TSXV: ALE) announces the filing of its interim
condensed consolidated financial statements for the three months
ended March 31, 2011, together with its Management's Discussion and
Analysis. These documents will be available on the Company's
website at www.alangeenergy.com and at www.sedar.com. Luciano
Biondi, the Company's Chief Executive Officer, stated "We are
pleased with the progress that executive management and operational
staff have made thus far in 2011, taking the company in its new
direction towards improved operational efficiencies and
communications. These factors contribute to the ongoing
improvements in reduced operational costs and enhanced netbacks,
enabling us to focus all of our resources on exploring and
developing our core assets and meeting our production growth
target." The Company reported revenues for the first quarter of
2011 of $20.8 million, more than double the same period a year ago,
driven by the sale of 231,727 barrels of oil at an average selling
price of $93 per barrel and 148,827 mcf of gas at an average
selling price of $4.35 per MMbtu. Operating netbacks averaged $52
per barrel oil-equivalent (boe) in the first quarter, a $30 per boe
improvement from the fourth quarter of 2010, as a direct result of
the measures taken by current management to improve the Company's
profitability and cash flow. As previously announced, the Company
has also taken steps to significantly reduce its G&A expenses.
Excluding non-recurring expenses incurred in the first quarter
related to the internal review process and costs associated with
the staff who have been terminated, G&A on an adjusted basis
would have been approximately $3.7 million in the first quarter.
The Company is continuing its initiatives to reduce its quarterly
G&A run rate. For the first quarter of 2011, the Company
reported a net loss of $10.0 million or $0.01 per share, including
the impact of a one-time charge of $6.3 million related to the
2011-2014 equity tax levied on companies in Colombia. Current
management took steps during the first quarter of 2011 to
strengthen the Company's balance sheet and improve its liquidity,
including the completion of a CA$70 million equity financing. The
Company closed the first quarter with a cash balance of $30.5
million, including $25 million of cash set aside to fund its 2011
exploration program, and a $53 million reduction in its working
capital deficit. Total short- and long-term debt was reduced by $35
million to $10 million by early April 2011 to reduce the debt
service burden on the Company's operating cash flow. In April 2011,
the Company completed a $25 million acquisition of an additional
32% interest in the eastern block of the Cubiro property in the
Llanos Basin. Financed through a CA$31 million 9% Senior Notes
offering that closed in early May, the acquisition immediately
increased the Company's share of production (before royalties) to
an average of approximately 2,800 boed, up 22% from the daily
average production of 2,294 boed in the first quarter of 2011.
However, in mid-May, the wash-out of a major highway north of the
city of Yopal in the province of Casanare triggered by severe
weather conditions resulted in a short-term production disruption
at the Cubiro property due to limitations of truck availability.
Consequently the Company's daily average production slipped to
approximately 2,200 boed over a period of about 32 days. Temporary
repairs to the highway have since been made by the government and
the flow of traffic has resumed. Over the last 6 days, the
Company's daily average production has returned to 2,800 boed.
Recent results from testing at the La Punta 4 well, which reached
total depth in May, indicate that the well is dry. Discussions are
underway with the operator at La Punta regarding timing and other
considerations for the planned La Punta 5 well to be drilled later
this year. Alange Energy is continuing its efforts to realize value
from its non-core assets, essentially the gas assets and the Las
Quinchas heavy oil property. The Company is currently in
discussions with several parties pursuing opportunities to joint
venture, farm out or dispose of its interests in these assets. On
May 9, 2011, a total of 36,607,500 stock options were granted to
directors, officers, employees and consultants of the Company at an
exercise price of CA$0.30 per common share. The options vested
immediately and have a term to expiry of five years. Management
will hold a conference call on Thursday, June 30, 2011 at 9:30 a.m.
(Eastern Time) to provide an operational update and to discuss the
first quarter results. Analysts and interested investors are
invited to participate as follows: Toronto & International:
(647) 427-7450 North America: (888) 231-8191 Conference ID:
79954575 A playback of this conference call will be available by
dialling 416-849-0833 or (800) 642 1687 with the above conference
ID number until July 14, 2011. Alange Energy is a Canadian-based
oil and gas exploration and production company, with working
interests in 19 properties in five 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. 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/June2011/30/c2551.html p
Miranda Smithbr/ Investor Relations Representativebr/ (647)
428-7422 /p
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