Alange Hits Paydirt at Cubiro Block Onshore Colombia

Alange Energy reported that the Barranquero-1 well, drilled to explore the prospectivity of the Carbonera C-7 formation in Polygon B of the Cubiro Block, found 15 feet of net oil sand. Well tests performed along the perforated interval 5,825 to 5,848 feet measured depth (MD) have shown an initial production rate of 560 barrels per day of 28 degrees API oil with 10% BS&W, on natural flow. These results represent a new discovery in the Cubiro Block, located in the Llanos Basin of Colombia, and merit an extensive evaluation aimed at a separate development program for this reservoir.

Barranquero-1, an exploration well drilled directionally with an angle of 9.7 degrees of inclination to a total of 6,559 feet MD, reached the top of the reservoir, the Carbonera C-7 formation at 5,825 feet MD. The petrophysical analysis shows 15 feet of net pay with an average porosity of 29% and oil saturation in the range of 60 to 70%. The Company decided to complete this well in the C-7 formation using an electro-submersible pump, with the simulation projecting 1,580 barrels per day of production at 30 Hz of frequency. Management's preliminary estimates are that this discovery could represent an addition of approximately 800,000 barrels of oil to the Company's 2P reserves.

The Company also provided an update on the appraisal activity that is currently being conducted on Polygon A of the block, specifically on the Careto-8 appraisal well. It announced that the Careto-8 well, with the objective of production from the Carbonera C-7 formation, found 23 feet of net oil sand. The Careto-8 well was stabilized at 460 barrels per day of 31 degrees API oil with 83% BS&W and was completed with an electric submersible pump. This well was drilled directionally with an angle of 30 degrees inclination, to a final depth of 7,300 feet true vertical depth sub-sea (TVDSS) (7,414 feet MD). The well found the top of the Carbonera C-7 sandstones at a depth of 6,238 feet MD and the oil-water contact at 6,273 feet MD. Well logs indicated 23 feet of potential net oil pay in three intervals of C-7. Petrophysical evaluation of the well data indicated porosities of 28%, reservoir pressure of 2600 Psia and a Productivity Index of 9.5 Bls/Psia.

The Cubiro Block, located in Llanos Basin of Colombia, is an asset in which the Company holds a 60.5% working interest in Polygon A and a 70.0% working interest in Polygon B.