/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN
TSXV Trading Symbol: MVN
OTC Trading Symbol: MDLNF
CALGARY, June 24, 2014 /CNW/ - Madalena Energy Inc. ("Madalena" or the
"Company") (TSXV: MVN and OTC: MDLNF) is pleased to announce that it
has closed its previously announced bought deal, short form prospectus
offering of 98,100,000 subscription receipts of the Company ("Subscription Receipts") at a price of $0.51 per Subscription Receipt for aggregate gross
proceeds of $50,031,000 (the "Offering"). The syndicate of underwriters for the Offering was led by Dundee
Securities Ltd. and included RBC Capital Markets, Haywood Securities
Inc., Beacon Securities Limited, National Bank Financial Inc.,
FirstEnergy Capital Corp., Mackie Research Capital Corporation, TD
Securities Inc., Canaccord Genuity Corp., Jennings Capital Inc. and
Raymond James Ltd. (the "Underwriters").
As previously announced, the Company will use the net proceeds from the
Offering to fund the remaining cash component for the acquisition (the
"Acquisition") of the Argentinean business unit of Gran Tierra Energy Inc. The
gross proceeds from the Offering will be held in escrow pending the
satisfaction of all conditions to the completion of the Acquisition
(other than funding). The Acquisition is expected to close on or about
June 25, 2014.
Pursuant to the Offering, the Underwriters have an option, exercisable
at any time up to 30 days following closing of the Offering, in whole
or in part, to purchase an additional 14,715,000 Subscription Receipts
at a price of $0.51 per Subscription Receipt to cover over-allotments
and for market stabilization purposes.
About Madalena - International and Domestic Assets (Pre-Acquisition)
Madalena is an independent, Canadian-based, international and domestic
upstream oil and gas company whose main business activities include
exploration, development and production of crude oil, natural gas
liquids and natural gas.
Internationally, Madalena holds three large blocks within the Neuquén
basin in Argentina where it is focused on the delineation of large
petroleum in-place shale and unconventional resources in the Vaca
Muerta and Lower Agrio shales, in addition to multiple tight sand
plays. The Company is also implementing horizontal drilling and
completions technology to high impact international plays and is
currently focused on a conventional oil play in the Sierras Blancas
formation. Madalena holds approximately 132,200 net acres on the Coiron
Amargo (34,950 net acres), Curamhuele (50,600 net acres) and Cortadera
(46,650 net acres) blocks.
Domestically, Madalena's core area of operations is located in the
Greater Paddle River area of west-central Alberta where the Company
holds approximately 195 gross (153 net) sections of land (approximately
78% average W.I.) encompassing light oil and liquids-rich gas resource
plays. Madalena's primary domestic focus is to exploit its large
inventory of horizontal drilling locations on its Ostracod oil and
emerging oil & liquids-rich gas resource plays.
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.madalenaenergy.com
Forward Looking Information
The information in this news release contains certain forward-looking
statements. These statements relate to future events or our future
performance, in particular, but not limited to, with respect to the
timing of closing of the Acquisition and the Company's use of proceeds
from the Offering. Statements relating to "reserves" are also deemed to
be forward looking statements, as they involve the implied assessment,
based on certain estimates and assumptions, that the reserves described
exist in the quantities predicted or estimated and that the reserves
can be profitably produced in the future. 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
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.
THE SECURITIES OFFERED HAVE NOT BEEN REGISTERED UNDER THE U.S.
SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE OFFERED OR SOLD IN
THE UNITED STATES ABSENT REGISTRATION OR AN EXEMPTION FROM THE
REGISTRATION REQUIREMENTS. THIS PRESS RELEASE SHALL NOT CONSTITUTE AN
OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY NOR SHALL THERE BE
ANY SALE OF THE SECURITIES IN ANY STATE IN WHICH SUCH OFFER,
SOLICITATION OR SALE WOULD BE UNLAWFUL.
SOURCE: Madalena Energy Inc.
For further information:
Kevin Shaw, P.Eng, MBA
President and Chief Executive Officer
Madalena Energy Inc.
Phone: (403) 262-1901 (Ext. 230)
Thomas Love, CA
VP, Finance and Chief Financial Officer,
Madalena Energy Inc.
Phone: (403) 262-1901 (Ext. 227)