Alange Secures Operating Rights in Colombia's Mecaya Block
Alange Energy has closed three transactions for a 58% working interest in the Mecaya E&P Contract and will become the operator of the joint venture. The Company had previously announced these transactions that consolidate this working interest in Mecaya, two of them being enabled through the acquisitions of Prospero Hydrocarbons Inc. (28% from Mecaya Colombia Partners LLC ("MCP")) and Delavaco Energy Inc. (15% from Gran Tierra Energy Colombia Ltd ("Gran Tierra Energy")). Located in the Putumayo Basin in Colombia, the Mecaya Block includes the discovery well, Mecaya No.1, that was gauged at 650 barrels of oil per day of 27.2degrees API oil on natural flow, and two other wells that have previously tested positive for oil. Based on Petrotech Engineering Ltd.'s independent reserve and resource assessment report dated March 31, 2009, these acquisitions represent 2P reserves of light/medium oil of 1.2 MMboe.
On November 30, 2009, Alange Energy entered into an agreement with Gran Tierra Energy, the operator of the Mecaya E&P Contract and the Rio Magdalena Association Contract, whereby Gran Tierra Energy's 15% interest in Mecaya and 40% interest in Rio Magdalena are being transferred to Alange Energy for total cash consideration of $3.0 million. Alange Energy will become the operator. Alange Energy currently holds a 51% working interest in Rio Magdalena. The assignment and the appointment of Alange Energy as operator are subject to approval by the ANH for Mecaya and by both the ANH and Ecopetrol S.A. for Rio Magdalena.
On December 15, 2009 Alange Energy closed its previously announced transaction with MCP to acquire its 28% working interest in the Mecaya Block.
Finally, as previously announced, the Company executed a purchase and sale agreement on November 19, 2009 with Petex Offshore Inc. to acquire an additional 15% working interest in the Mecaya Block.
Commenting on the Mecaya and Rio Magdalena transactions, Mr. Luis Giusti, CEO of Alange Energy stated, "The aggregate of these acquisitions concludes a long-term consolidation plan for Mecaya and enables us to meet our objective of increasing shareholder value."