March 7, 2011 / 2:28 PM / 7 years ago

UPDATE 2-Alange cuts jobs, ends sales deal to trim costs; shrs up

* Says has cut 49 jobs till date

* Repaid $9 mln, finalizing repayment of $22 mln debt

* Says output at key oil asset hurt by trucking woes

* Shares rise as much as 5 percent (Adds share movement)

March 7 (Reuters) - Canada’s Alange Energy Corp , which started restructuring its operations in January, said it cut about 45 percent of jobs till date and ended certain sales deal as part of efforts to reduce costs, sending its shares up 5 percent.

The oil and gas exploration and production company, which had a cash balance of about $6 million as at Dec. 31, 2010, said it also cancelled the contract of a local public relations firm.

The company, which had total debt of about $47 million as at the end of 2010, said it has repaid $9 million of its long-term debt and is finalizing repayment of another $22 million of credit-line borrowings and long-term debt.

Alange, which has more than 1.2 million acres of property in Colombia, said it is reviewing other contracts and activity based spending to identify more cost savings.

Production at Cubiro, one of its core oil assets, has been hurt by trucking disruptions in the first two months of 2011.

The company, which has been looking to dispose of or farm out its non-core assets, had said in January its chief executive Luis Giusti had resigned.

The 49 job cuts will comprise 10 senior managers, 20 support staff and 19 technical consultants, the company said.

Alange’s shares, which have slumped 44 percent so far this year, were up 10 Canadian cents at C$0.315 in afternoon trade on the Toronto Venture Exchange. (Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Sriraj Kalluvila, Maju Samuel)

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