Alange CEO “steps down” after output errors (updated)

Turns out you shouldn’t say you’re producing more oil than you really are. Bye Luis.

UPDATE
Those of you who received the e-mail version of this post know that I initially said he was fired. That’s not what the statement says. I guess I was just reading between these lines:

The Company announced today that Mr. Luis Giusti Sr. has stepped down as Chief Executive Officer and will remain on the board to provide his support to this process. The board will also ensure it has the resources available to oversee the execution of the strategic plan that is being implemented under new leadership and a new management team. To this effect, the Executive Committee of the board of directors (consisting of the independent members of the board) has authorized the delegation of authority to Mr. Gregg Vernon, Interim Chief Operating Officer, while it conducts a search for a new Chief Executive Officer. In addition, the Executive Committee has hired two experienced oil and gas industry consultants to support the implementation of the strategic plan initiatives. Mr. Luciano Biondi Golinucci, a graduate of the Universidad del Zulia with a B.Sc. in petroleum engineering with 42 years of extensive experience in all facets of the business, in particular the production and drilling operations in all manner of fields, will focus on improvements to increase production from the Company’s core assets. The Executive Committee has also retained the services of Mr. Francisco Bustillos, an executive with over 30 years of financial and management experience in the oil industry. Working closely with Michael Davies, the Company’s Chief Financial Officer, Mr. Bustillos will lead the implementation of improved internal controls, processes and management systems in Alange Energy’s Colombian operations.

They’re firing 40% of the staff in an attempt to get their administrative spending down.

The company will hang on, for now, to its equity interest in the Topoyaco block with its “gusher,” but is giving operational control to its partner, Pacific Rubiales.

Alange is also issuing $50 million worth of stock to try and pick up some working capital and pay off some of its $47 million of debt, and is promising that it will comply with its commitment to spend $12.5 million in the next four months on a new exploration block.

Gotta wonder about those 17 million shares that traded today, with piles of folks buying into the stock on tout from Thom Calandra: “I expect some sort of recapitalization and fresh faces to turn things around.” Prescient. He said he thought the stock had bottomed at 27c. Be that as it may, with 167 million new shares about to get sold at 30c (with a half-share warrant good for 5 years at 50c) about to come on the market, those who bought today at 34 cents might may be a little sore at Mr. Calandra. Luckily for him, they will mostly blame themselves, and he will continue to sell newsletters.

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12 thoughts on “Alange CEO “steps down” after output errors (updated)

    1. sapitosetty Post author

      I really get no pleasure from this sort of thing. Especially when the people who lost money to Giusti’s lies (ok, material misstatements he should have known to be incorrect) are still out their cash, while he and Horacio Santos are still on the company board, and GMP Securities just handed them $50 million on the (probably correct) assumption that the Canadian markets will soak up these new shares and give Alange another chance.

    1. Reginald Rodríguez

      PDVSA first, Stanford “bank” second, and now Alange Energy!

      It is necessary another proof that this guy is a vulgar thief?

      A cell in jail for him! Don’t forget to throw the key!!

        1. Reginald Rodríguez

          Come to Venezuela and I give you a lot of evidence to put in jail this crook for 30 years! I offer them to the canadian and american authoritys, so this malevolent criminal is put out of the streets!

          Much better! Send the thief to venezuela and the courts will give him a “warm” reception!

          A criminal is a criminal, no matter he uses a gun or a pen, like this Giusti guy!

    2. Reginald Rodríguez

      Unbelievable? In Venezuela almost all the population knows that this guy is a crook!

      He almost sell our oil industry “for the prize of a thin hen”; later he swindles a lot of stupids with the Stanford “bank”; stupids that put their money in his hands just because Chavez said the truth about him: “he’s a vulgar thief”.

      And now we got Alange Energy, the new ” innocent dirty deed” of this good ol’ boy.

      Put this guy in jail before he stoles your wallet!

  1. Jordan Farzier

    talk about careless, he just pissed on a whole lotta parades, he should fall hard and this is way to coincedental to say the least, talk about crooks on wallstreet…..honestly, everyone should recoup this investment at 4,100K barrels of production and call it a day, thats the guidance we where given and thats what we put our cash to finance…..

  2. Jimmy

    Hmmm a lot of hate and envy about Mr Giusti. Specially the red that posted comments from Venezuela. See what PDVSA has become now!!!

  3. Donald A. Goddard

    Alange Energy now needs to show that it is a viable, serious operator in Colombia and prove to its stockholders that it can it can increase its production and reserves by drilling successful wells in it’s acquired acreage. It can do this under the leadership of Luciano Biondi, a petroleum engineer with incredible credentials in production and drilling operations. However time is of the essence, and the company needs to begin by drilling a few successful wells as soon as possible. As a private oil company, it’s the only way to show your stockholders that you are looking after their investment and not blowing smoke up their arses.

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