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ALANGE ENERGY ANNOUNCES FARM OUT TO YPF OF TWO COLOMBIAN ASSETS

July 11, 2011

TORONTO, July 11, 2011 /PRNewswire/ – Alange Energy Corp. (TSXV: ALE) announced
today that as part of its strategy to focus on production growth and
optimization of assets in the portfolio, it has entered into a
strategic partnership with YPF S.A. YPF is a large regional player in
the energy sector, and this partnership enables the Company to realize
value and gain future upside potential from certain of the Company’s
assets in the Catatumbo Basin in Colombia. The Company’s strategy to
joint venture was previously announced in a press release dated January
19, 2011. The partnership marks YPF’s entry into Colombian land
operations and provides an indication of the value of Alange’s
portfolio.

The partnership encompasses three agreements under which Alange Energy
will:

        --  Farm-out an interest in the Carbonera E&PC to YPF for a total
            work program of $23 million (100% working interest). Alange
            Energy will retain a 36% beneficial working interest in the
            property. YPF will fund up to $23 million of the exploration
            and capital program costs over the next three years including
            Alange Energy's share; this includes the costs associated with
            the acquisition of 3D seismic and drilling of one exploratory
            or development well in 2011. As well, an application will be
            submitted to the ANH requesting that YPF become the operator of
            the Carbonera E&PC. This agreement is subject to ANH approval.

        --  Farm-out interests in the Catguas E&PC to YPF for a total work
            program that could reach $100 million over the next three to
            five years (100% working interest). The Company currently has a
            50% beneficial working interest in the Catguas A Northern area
            and a 15% beneficial working interest in the Catguas B Southern
            area. Pursuant to the agreement, YPF will assume a 35% interest
            in the Northern area and a 10.5% interest in the Southern area
            and will pay $5 million cash to Alange Energy. Under certain
            conditions, the Company has the option to increase its working
            interests up to an additional 10% in the Northern area and 5%
            in the Southern area. This agreement is subject to ANH
            approval.

        --  Explore further business opportunities with YPF pursuant to a
            Memorandum of Understanding for joint exploration and
            development of the Company's interests in Rio Magdalena, Santa
            Cruz, Cerrito, Carbonera La Silla, Arrendajo and five of the
            blocks awarded to the Company in the ANH 2010 Open Round,
            namely VMM 35, VMM 11,  VSM 12, VSM 13 and COR 33.

Commenting on the farm-out agreements with YPF, Luciano Biondi, the
Company’s Chief Executive Officer, stated, “We are very pleased to be
partnered with a strong regional player who brings technical
capabilities and financial stability to explore and develop these
assets.  As we have previously indicated, the oil and gas assets of
Carbonera and Catguas are high quality assets and with YPF’s focus we
have the opportunity to realize value from the development of these
assets for our shareholders, an ideal partnership scenario.”

The Company also announced that it is continuing its discussions with
several parties in connection with investment opportunities to joint
venture, farm out or dispose of its interests in certain of its other
assets. The Company’s capital allocation program is designed to
generate improved returns on investment from the core portfolio.

Management will hold a conference call on Tuesday, July 12, 2011 at 9:00
a.m. (Eastern Time) to answer any questions pertaining to these
agreements. Analysts and interested investors are invited to
participate as follows:


              Toronto & International:     (647) 427-7450

              North America:               (888) 231-8191

              Conference ID:               82849705

A playback of this conference call will be available by dialling (416)
849-0833 or 1-855-859-2056 with the above conference ID number until
July 26, 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.

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.

 

SOURCE Alange Energy Corp.


Source: newswire



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