Madalena Ventures Inc. provides update on drilling operations on Cortadera Block in Neuquen Basin of Argentina

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TSXV Trading Symbol: MVN

CALGARY, Sept. 6, 2011 /CNW/ - Madalena Ventures Inc. and its wholly owned subsidiary Madalena Austral SA ("Madalena" or the "Company"), is pleased to provide an update on its drilling operations on the Cortadera Block in the Neuquén Basin in Argentina.

The CorS X-1 exploration well was drilled with joint venture partner and operator Apache Energia Argentina S.R.L., (Apache), to a total depth ("TD") of 14,760 feet. Casing to total depth will be run. A full suite of electrical logs were run tailored to investigate conventional and unconventional formations including shale in conjunction with select full diameter cores and side wall cores. Initial results are:

  • The Vaca Muerta shale formation was found to be 708 meters (2,323 feet) in gross thickness. Full diameter vertical cores and rotary side wall cores were obtained in the Vaca Muerta section.

  • In addition to the prospective shale formation thickness encountered in the Vaca Muerta formation, the CorS X-1 well also encountered gross thickness of 617 meters (2,024 feet) in the Quintuco formation overlying the Vaca Muerta.  Rotary side wall cores were obtained from the Quintuco formation.

  • In addition to the Vaca Muerta and Quintuco formations, the well also encountered a gross thickness of 206 meters (676 feet) in the Mulichinco formation where rotary side wall cores were taken in areas of elevated hydrocarbon shows.

  • Additional rotary sidewall cores were obtained for analysis in the Agrio formation overlying the Mulichinco.

Laboratory analysis will be carried out on the drilling cuttings, side wall cores and full diameter vertical cores and integrated with the existing electrical and mud logging information in order to design a testing and well stimulation program for the well. Testing and stimulation operations are anticipated to commence in October, 2011. Madalena has a 40% working interest in the Cortadera Block which covers 123,500 acres.

Commenting on the drill results of the CorS X-1 well, Mr. Dwayne Warkentin, President and CEO stated: "We are very pleased with the operations carried out by Apache Argentina on this, our deepest well yet drilled. It is exciting to be involved in one of the initial modern era wells drilled in the western portion of the Neuquén Basin, specifically designed to test the prospective Vaca Muerta shale. Information gathered from the drilling and testing of this well will also assist us in our plans for the exploration and potential development of the Vaca Muerta formation in our Curamhuele Block situated 30 kilometers north and on trend with Cortadera where we own and operate a 90% working interest.  We look forward to the full testing and evaluation of the CorS X-1 well which we anticipate will commence next month."

About Madalena

Madalena is a publicly traded international junior Canadian oil and gas exploration company trading on the TSXV under the symbol "MVN".

Forward Looking Statements and BOE equivalents

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. 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 that 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 Company's forward-looking statements 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 determinative of the rates at which such wells will commence production and decline thereafter. Additionally, 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 the Company.

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.

SOURCE Madalena Ventures Inc.

For further information:

Dwayne H. Warkentin  
President and Chief Executive Officer
Madalena Ventures Inc. 
Phone: (403) 233-8010 ext 229 
            Anthony J. Potter
Vice President, Finance and Chief Financial Officer
Madalena Ventures Inc.
Phone: (403) 233-8010 ext 233

 

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Madalena Ventures Inc.

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