Alange Energy announces share consolidation and name change

TORONTO, July 15, 2011 /PRNewswire/ - Alange Energy Corp. (TSX-V: ALE), is pleased to announce the consolidation of its issued and outstanding common shares on a one-for-seven basis as authorized by its shareholders at the Company's annual and special meeting of shareholders held on June 15, 2011. The consolidation is being effected to reduce volatility in the stock and to make it more attractive to institutional investors.

The Company will also be consolidating its issued and outstanding listed warrants (TSX-V: ALE.WT) on a one-for-seven basis, with the result that each consolidated warrant will now entitle the holder to acquire one common share in the capital of the Company at an exercise price equal to seven times its original exercise price, or $3.50.

Commencing at opening of trading on Tuesday, July 19, 2011, the common shares in the capital of the Company and listed warrants will trade on a post-consolidation basis on the TSX Venture Exchange.

In conjunction with the consolidation and on the same date, the Company will be changing its name to PetroMagdalena Energy Corp., and the post-consolidation common shares and warrants will trade under the new name and corresponding new trading symbols, "PMD" and "PMD.WT", respectively.

The following table summarizes the Company's capital structure following the consolidation of its common shares and warrants (all dollar amounts expressed in Canadian dollars):

Table 1 - PetroMagdalena Energy Corp. capital structure (post-consolidation and name change)

No fractional shares or warrants will be issued if, as a result of the consolidation, a registered shareholder would otherwise become entitled to a fractional common share or warrant by virtue of holding common shares or warrants that are not in a multiple of seven.  Any fractional shares or warrants resulting from the consolidation will be converted by the Company into whole shares or warrants on the basis that each fractional share or warrant that is less than half of a share or warrant will be cancelled and each fractional share or warrant that is at least half of a share or warrant will be changed to one whole common share or warrant.

About Alange Energy Corp.

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 Canadian 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 the listing of the Warrants on the TSX Venture Exchange and the intended use of the net proceeds from the Offering.

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, other risks of the oil and gas industry, failure of plant, equipment or processes to operate as anticipated; the ability of Alange Energy to obtain qualified staff, equipment and services in a timely and cost efficient manner to develop its business; the ability to replace and expand oil and natural gas reserves through acquisition, development of exploration; the timing and costs of drilling, completion, pipeline, storage and facility construction and expansion; the regulatory framework regarding royalties, taxes and environmental matters; the ability of Alange Energy to successfully market its oil and natural gas products and completion of the review of internal controls and procedures, management systems and corporate governance practices. 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 that the foregoing lists of risks, uncertainties, assumptions and other factors are not exhaustive.  The reader should not 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.