UPDATE 1-Alange Energy finds heavy oil at Colombia block
* Well logs show presence of significant net oil sands
* Says to start drilling prospect D at Topoyaco late in Q1
Dec 16 (Reuters) - Canadian explorer Alange Energy Corp (ALE.V) said it discovered heavy oil at the Topoyaco block in the Putumayo basin in Colombia.
The company said the Topoyaco-2 well reached a total depth of 8,700 feet, finding 114 feet of total net oil pay sand. This has prompted the company to carry out extensive testing using diverse optimization techniques.
"The discovery of an unanticipated heavy oil reservoir... has diverted us from the original targeting of Villeta and Caballos (formations), which hold the best promise," Chief Executive Luis Giusti said in a statement.
Alange, which has more than 1.2 million acres of property in Colombia, will start drilling prospect D at the Topoyaco block late in the first quarter of 2011.
Shares of the company closed at 56 Canadian cents on Wednesday on the Toronto Venture Exchange.The stock has lost 14 percent of its value year to date. (Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Anne Pallivathuckal)