TSXV Trading Symbol: MVN
CALGARY, Feb. 4, 2013 /CNW/ - Madalena Ventures Inc. (the "Company" or
"Madalena" (TSX VENTURE: MVN) is pleased to provide the following
International Operations Update - Neuquen Basin
In Argentina, exploration and delineation activity continues on the
Company's large petroleum in-place unconventional shales and
conventional tight sand plays. In the southern portion of the Coiron
Amargo block (Madalena 35% W.I.), Madalena continues to define and
quantify the Vaca Muerta shale potential on the block with the recent
drilling of the CAS X-5 exploration well. The CAS X-5 location was
drilled to a total depth of 3,400 meters (or 11,155 feet) and
encountered hydrocarbon in the Vaca Muerta as expected. CAS X-5 has now
been cased with approximately 100 meters of Vaca Muerta shale on logs
and an average total organic content ("TOC") over the 100 meter section
of over 4%, confirming the high quality of the Vaca Muerta on the
block. Based on technical information gathered to date, Coiron Amargo
has some of the highest TOC content within the Neuquen basin, and based
on core data on the block, the lower Vaca Muerta at CAS X-5 is expected
to have approximately 7% porosity.
With recent Joint Venture partnerships being announced near the Coiron
Amargo block by both Chevron and Bridas (on YPF held acreage) for an
estimated U.S. $1.0 - $1.5 billion to earn various working interests in
the Vaca Muerta shale, Madalena is focused on continuing to delineate
and prove-up this significant resource at Coiron Amargo. Madalena is
also actively working to move forward on its other two blocks within
the Neuquen basin at Cortadera (40% W.I.) and Curamhuele (90% W.I.).
Western Canada Operations Update - Greater Paddle River Core Area
With the focus on production growth from its three key resource plays in the Greater Paddle River Area, Madalena continues to move forward on
its plan to drill, multi-stage frac and tie-in four to five net
horizontal wells prior to spring break-up.
At Paddle River, the Company is currently drilling the 100% W.I. 8-5 Ostracod oil horizontal well. Once drilling is completed at this location and a
production liner is run, the drilling rig will move to a follow-up
Ostracod oil horizontal location (Madalena 100% W.I.) to continue to
exploit its 54 net sections on this resource play.
In the Wildwood area, Madalena is preparing to complete its recently
drilled 100% W.I. 15-12 Nordegg liquids-rich horizontal well (estimated
at over 100 bbls/mmcf). It is anticipated that a multi-stage frac
program will be undertaken on the well within the next two weeks and
subsequently tested and tied-in to Madalena's local infrastructure. The
Company plans, weather permitting, to drill an additional 100% W.I.
Nordegg liquids-rich horizontal well prior to spring break-up.
Madalena has 144 net sections on the Nordegg oil & liquids-rich resource play.
At Niton, the Company is also currently constructing wellsite facilities
to enable its recently drilled 100% W.I. 6-27 Notikewin horizontal well to be placed on production by mid-February. The well
was completed with a multi-stage frac and was flow tested as disclosed
in a January 17, 2013 press release.
Mr. Anthony Potter has resigned from his positions of Vice-President,
Chief Financial Officer effective February 28, 2013 and as Director of
Madalena and its subsidiaries effective immediately. The Board of
Directors and Management of Madalena wish to thank Mr. Potter for his
Mr. Thomas Love, C.A., the former CFO and Director of Online Energy Inc. ("Online") has been
providing consulting services since the acquisition of Online, and
go-forward, will continue to be available to assist the Company during
and after the transition period. Mr. Love has over 35 years of
experience in the oil and gas industry, including both Western Canadian
and International experience. Prior to his role at Online, he was the
CFO of Trimox Energy Inc. and Moxie Exploration Ltd., and President and
Chief Executive Officer of Moxie Petroleum Ltd. Earlier in Mr. Love's
career, he was involved in running the Canadian operations of a U.K.
based International E&P and articled at Ernst & Young LLP.
Layering in Gas Hedges on Base Production
As at February 4th, 2013, Madalena has the following natural gas
commodity fixed price risk management contracts in place for 2013.
Apr. 1, 2013 to Oct. 31, 2013
Apr. 1, 2013 to Oct. 31, 2013
The natural gas fixed price swap of 300 GJ/d at a price of CDN$4.47/GJ
was enhanced and received a premium price in 2013 by placing a call on
50 bbl/d at US$100 for the calendar year 2014.
As at February 4th, 2013, the details of the above commodity price risk
management arrangements are as follows:
Natural gas fixed
April 1, 2013 to Oct. 31, 2013
Natural gas fixed
April 1, 2013 to Oct. 31, 2013
Crude oil call options
Jan. 1, 2014 to Dec. 31, 2014
About Madalena - Domestic and International Assets
Madalena is an independent, Canadian-based, domestic and international
upstream oil and gas company whose main business activities include
exploration, development and production of crude oil, natural gas
liquids and natural gas.
Domestically, Madalena holds a significant acreage position in Western
Canada, with a core area of operations located in the Greater Paddle
River area, where the company holds 197 gross (153 net) sections of
land (78% average W.I.) across multiple light oil and liquids-rich gas
resource plays. Madalena's focus domestically is to exploit its large
inventory of horizontal development locations in its Ostracod oil,
Notikewin/Wilrich liquids-rich gas, and Nordegg oil & liquids-rich
resource plays. Madalena also holds ~103 net sections (100% W.I.)
which are prospective for the Duvernay shale.
Internationally, Madalena holds three large blocks within the prolific
Neuquén basin in Argentina and is focused on the delineation and
prove-up of its large petroleum in-place shale & unconventional
resources in the Vaca Muerta and Agrio shales, alongside high impact
plays in the Quintuco and Mulichinco formations. Madalena holds
135,000 net acres across the Coiron Amargo (35,027 net acres),
Curamhuele (50,400 net acres) and Cortadera (49,600 net acres) blocks.
Madalena trades on the TSX Venture Exchange under the symbol MVN. Basic
corporate information, recent news releases and regularly updated
corporate presentations are available on the Company's website at www.madalena-ventures.com.
The information in this news release contains certain forward-looking
statements. These statements relate to future events or our future
performance. All statements other than statements of historical fact
may be forward-looking statements. Forward-looking statements are
often, but not always, identified by the use of words such as "seek",
"anticipate", "plan", "continue", "estimate", "approximate", "expect",
"may", "will", "project", "predict", "potential", "targeting",
"intend", "could", "might", "should", "believe", "would" and similar
expressions. In particular, this news release contains forward-looking
statements pertaining to operational activities to be conducted by the
Company. These statements involve substantial known and unknown risks
and uncertainties, certain of which are beyond the Company's control,
including: the impact of general economic conditions; industry
conditions; changes in laws and regulations including the adoption of
new environmental laws and regulations and changes in how they are
interpreted and enforced; fluctuations in commodity prices and foreign
exchange and interest rates; stock market volatility and market
valuations; volatility in market prices for oil and natural gas;
liabilities inherent in oil and natural gas operations; uncertainties
associated with estimating oil and natural gas reserves; competition
for, among other things, capital, acquisitions, of reserves,
undeveloped lands and skilled personnel; incorrect assessments of the
value of acquisitions; changes in income tax laws or changes in tax
laws and incentive programs relating to the oil and gas industry;
geological, technical, drilling and processing problems and other
difficulties in producing petroleum reserves; and obtaining required
approvals of regulatory authorities. The Company's actual results,
performance or achievement could differ materially from those expressed
in, or implied by, such forward-looking statements and, accordingly, no
assurances can be given that any of the events anticipated by the
forward-looking statements will transpire or occur or, if any of them
do, what benefits the Company will derive from them. These statements
are subject to certain risks and uncertainties and may be based on
assumptions that could cause actual results to differ materially from
those anticipated or implied in the forward-looking statements. The
forward-looking statements in this news release are expressly qualified
in their entirety by this cautionary statement. Except as required by
law, the Company undertakes no obligation to publicly update or revise
any forward-looking statements. Investors are encouraged to review and
consider the additional risk factors set forth in the Company's Annual
Information Form, which is available on SEDAR at www.sedar.com.
Any references in this news release to test rates, flow rates, initial
and/or final raw test or production rates, early production and/or
"flush" production rates are useful in confirming the presence of
hydrocarbons, however, such rates are not necessarily indicative of
long-term performance or of ultimate recovery. Such rates may also
include recovered "load" fluids used in well completion stimulation.
Readers are cautioned not to place reliance on such rates in
calculating the aggregate production for Madalena. In addition, the
Vaca Muerta shale is an unconventional resource play which may be
subject to high initial decline rates.
All calculations converting natural gas to barrels of oil equivalent
("boe") have been made using a conversion ratio of six thousand cubic
feet (six "Mcf") of natural gas to one barrel of oil, unless otherwise
stated. The use of boe may be misleading, particularly if used in
isolation, as the conversion ratio of six Mcf of natural gas to one
barrel of oil is based on an energy equivalency conversion method
primarily applicable at the burner tip and does not represent a value
equivalency at the wellhead. Given that the value ratio based on the
current price of crude oil as compared to natural gas is significantly
different from the energy equivalency of 6:1, utilizing a conversion on
a 6:1 basis may be misleading as an indication of value.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
Certain information in this document may constitute "analogous
information" as defined in National Instrument 51-101 - Standards of
Disclosure for Oil and Gas Activities ("NI 51-101"), including, but not limited to, information relating to the areas in
geographical proximity to prospective lands held by Madalena and
production information related to wells that are believed to be on
trend with the Company's properties. Such information has been
obtained from government sources, regulatory agencies or other industry
participants. Management of Madalena believes the information is
relevant as it helps to define the reservoir characteristics in which
Madalena may hold an interest. Madalena is unable to confirm that the
analogous information was prepared by a qualified reserves evaluator or
auditor. Such information is not an estimate of the reserves or
resources attributable to lands held or to be held by Madalena and
there is no certainty that the reservoir data and economics information
for the lands held or to be held by Madalena will be similar to the
information presented herein. The reader is cautioned that the data
relied upon by Madalena may be in error and/or may not be analogous to
such lands to be held by Madalena.
Total Organic Content ("TOC")
Any references in this news release to TOC levels is useful in
determining the presence of organic material and the likelihood of the
discovery of hydrocarbons, however, the presence of such levels of TOC
is not necessarily indicative of ultimate recovery, economic or
otherwise, of hydrocarbons. Readers are cautioned not to place reliance
on such levels in calculating the aggregate reserves or resources for
SOURCE: Madalena Ventures Inc.
For further information:
Kevin Shaw, P.Eng, MBA
President and Chief Executive Officer
Madalena Ventures Inc.
Phone: (403) 262-1901 (Ext. 230)