2009-10-28-2009-10-01

To buy company with assets in Middle Magdalena, Llanos & Catatumbo basins, Colombia, gaining 19.3 MMBOE 2P, 215 BOE/d.

Alange Energy Corp., Toronto, (Toronto Venture: ALE) plans to acquire privately held, Colombia-focused Delavaco Energy Inc., Calgary, for approximately C$100 million in stock. Alange will pay 0.8674 shares per Delavaco share. Delavaco will become a subsidiary of Alange. Delavaco currently holds interests in Colombia including a 51% working interest in the Rio Magdalena block in the Middle Magdalena Basin, and is negotiating to acquire an additional 40% interest and operatorship; a 39% working interest in the Carbonera block in the Catatumbo Basin, with plans to acquire an additional 6% interest in the block in early October; a 3.6% interest in La Punta No. 2, which is a producing well within the La Punta block in the Llanos Basin and planning to acquire a 6% to 10% working interest in the remainder of the block; and is currently in negotiations to acquire operatorship status and a 15% interest in the Mecaya Block in Putumayo Basin. As at Dec. 31, 2008, Petrotech Engineering Ltd. assigned 12.7 million barrels of oil equivalent of net proved plus probable reserves to Delavaco. Management estimates that the successful negotiations of working interest additions described above will result in 6.5 million barrels equivalent in net proved plus probable reserves, resulting in a total of 19.3 million barrels net proved plus probable. Current average daily net production after royalties is approximately 215 barrels of oil equivalent per day. Canaccord Capital Corp. is financial advisor to Delavaco and Power One Capital Markets Ltd. and Clarus Securities Inc. are strategic advisors. GMP Securities LP is advisor to Alange.