NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
TSXV Trading Symbol: MVN
CALGARY, Dec. 14 /CNW/ - Madalena Ventures Inc. and its wholly owned
subsidiary Madalena Austral SA ("Madalena" or the "Corporation"),
announces that the Curamhuele X-1001 exploration well located on the
Curamhuele Block in the Province of Neuquén, Argentina has been
temporarily suspended with intermediate casing set at 4,000 feet due to
operational issues associated with drilling through the lower portion
of the Neuquen group formation. Madalena will re-enter the well and
continue to the objective formations early in the new year utilizing
specialized equipment that is not available at this time. Plans to
re-enter the well will be combined with ongoing preparations to drill
the Yapai X-1001 (previously named Yapai X-2) thrust play well in the
first quarter of 2011.
Madalena anticipates that it will be active on all three of its
exploration blocks in the first quarter of 2011. On the Coiron Amargo
Block, Apco Oil & Gas International Inc. has elected to enter into the
second stage of the previously announced multi-well drilling program
and farm-out on the block. Drilling of the third well under the
farm-out agreement, CAS X-1, is expected to commence in January 2011 in
the southern portion of the block. The well is scheduled to be drilled
to approximately 11,500 feet depth to penetrate not only the primary
objective horizon in the Sierras Blancas formation, but will also allow
examination of the prospective Quintuco and Vaca Muerta horizons above,
and the Lotena formation below. The joint venture has agreed on two
further exploitation locations for which an environmental impact
assessment will be submitted to regulatory authorities once completed.
In addition, the joint venture anticipates further exploration activity
on the block associated with the Vaca Muerta shale formation.
Both the CAN X-1 and CAN X-3 exploration wells drilled in the northern
portion of the block are on production. It is anticipated that the
joint venture will return to the CAN X-3 location in the first quarter
of 2011 to conduct further testing operations.
On the Cortadera Block, a well location has been identified and an
environmental impact assessment has been submitted to regulatory
authorities. Madalena anticipates that an exploration well targeting
gas in the Mulichinco tight sand and Vaca Muerta shale formations will
be drilled on the block in the first quarter of 2011.
The Corporation would like to remind holders of common share purchase
warrants (the "Warrants") that the Warrants will expire on December 30,
2010 at 5:00 p.m. (Calgary time) (the "Expiry Time").
Madalena is a publicly traded international junior Canadian oil and gas
exploration company trading on the TSXV under the symbol "MVN". The
Corporation is actively evaluating international oil and gas
opportunities with a primary focus on South America.
Forward Looking Statements
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 Corporation'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 Corporation'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 Corporation 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 Corporation's forward-looking statements are expressly
qualified in their entirety by this cautionary statement. Except as
required by law, the Corporation 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 Corporation'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
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.
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 Energy Inc.
For further information: 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