CALGARY, July 30, 2013 /CNW/ - Madalena Ventures Inc. ("Madalena" or the "Company") (TSX-V: MVN), an international and Canadian ("domestic") focused
upstream oil and gas company is pleased to provide the following
operational update on its international assets.
International Operations Update - Neuquén Basin, Argentina
Madalena holds three blocks / concessions within the prolific Neuquén
basin in Argentina and is moving forward to delineate its large
in-place unconventional oil & gas resources within the Vaca Muerta shale and Lower Agrio shale, alongside tight sand plays in the Mulichinco and Quintuco formations and select conventional zones of interest. Madalena holds
135,000 net acres across the Coiron Amargo (35,027 net acres),
Cortadera (49,600 net acres), and Curamhuele (50,400 net acres) blocks
with an estimated 2.9 billion boe of net (45% crude oil and natural gas liquids), best case P50 contingent and
prospective recoverable resources (as estimated by a recent Ryder Scott
independent evaluation of Madalena's acreage).
On July 12, 2013, in the southern portion of the Coiron Amargo block (Madalena 35% working interest), the CAS.x-14 well commenced
drilling with the primary target being the Vaca Muerta shale. Drilling
is expected to take three to four weeks with completion operations to
follow. The CAS. x-14 well is the first well of a multi-well program
planned for the remainder of 2013 on the Coiron Amargo block. After
CAS.x-14, the next two wells to be drilled on the block include the
first horizontal (CAN.xr-2h) into one of six Sierras Blancas
conventional light oil pools discovered to date and a subsequent Vaca
Muerta shale delineation well (CAS.x-15) in the southern portion of the
block. In addition, the shooting of two 3D seismic programs have been
recently completed at Coiron Amargo Sur. The Coiron Amargo block (both
north and south regions) now have extensive 3D seismic coverage.
At Cortadera (Madalena 40% working interest), the Company has recently agreed with
its partners on next steps to progress the block and plans to re-enter
the CorS.X-1 deep test originally drilled and completed as a Vaca
Muerta shale gas discovery in early 2012. The CorS.X-1 location was
cased to a depth of 4,500 meters with four zones of interest identified
by way of log interpretation and analysis. The re-entry work involves
moving uphole to perforate, fracture stimulate and evaluate one or more
uphole zones of interest in the Mulichinco (250 meters thick), Quintuco
(577 meters thick) or Agrio formations. Re-entry operations at
CorS.X-1 are planned to commence in early Q4-2013.
In follow-up to the recent Curamhuele block extension as outlined in the Company's press release dated June
17, 2013, the Company is moving forward with RBC Capital Markets as its exclusive financial advisor to identify a potential joint
venture partner to accelerate operational activities across the block
and to unlock value in its unconventional shales, tight sand plays and
conventional zones of interest. Madalena holds a 90% working interest
in the Curamhuele block.
About Madalena - International and Domestic Assets
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 prolific
Neuquén basin in Argentina where it is focused on the delineation of
vast shale and unconventional resources in the Vaca Muerta, Lower Agrio
and Los Molles shales, in addition to tight sand plays in the
Mulichinco and Quintuco. The Company is also developing a conventional
oil play in the Sierras Blancas formation. Madalena holds 135,000 net
acres on the Coiron Amargo, Curamhuele and Cortadera 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 200 gross (>150 net) sections of land (78% average
W.I.) encompassing light oil and liquids-rich gas resource plays.
Madalena's domestic focus is to exploit its large inventory of
horizontal development locations on its Ostracod oil, Notikewin/Wilrich
liquids-rich gas, and emerging Nordegg oil & liquids-rich gas resource
plays. Madalena also holds more than 100 net sections (100% W.I.) which
are prospective for the Duvernay shale.
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 resources of the Company and other oil and gas
information. 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.
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.
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.
In addition, the following sets out the applicable definition for each
of the resource categories as set out in the COGE Handbook, which are
used in this news release.
Definition: Those quantities of petroleum estimated, as of a given date, to be
potentially recoverable from known accumulations using established
technology or technology under development, but which are not currently
considered to be commercially recoverable due to one or more
Contingencies may include factors such as economic, legal,
environmental, political, and regulatory matters or a lack of markets.
It is also appropriate to classify as contingent resources the
estimated discovered recoverable quantities associated with a project
in the early evaluation stage.
"Discovered petroleum initially-in-place" or "discovered resources"
Definition: That quantity of petroleum that is estimated, as of a given date, to be
contained in known accumulations prior to production.
The recoverable portion of discovered petroleum initially-in-place
includes production, reserves and contingent resources; the remainder
Definition: Those quantities of petroleum estimated, as of a given date, to be
potentially recoverable from undiscovered accumulations by application
of future development projects.
Prospective resources have both an associated chance of discovery and a
chance of development.
"Total petroleum initially-in-place", "total resources" or "TPIIP"
Definition: That quantity of petroleum that is estimated to exist originally in
naturally occurring accumulations; equal to DPIIP plus UPIIP.
It includes that quantity of petroleum that is estimated, as of a given
date, to be contained in known accumulations, prior to production, plus
those estimated quantities in accumulations yet to be discovered.
"Undiscovered petroleum initially-in-place", "undiscovered resources" or "UPIIP"
Definition: That quantity of petroleum that is estimated, on a given date, to be
contained in accumulations yet to be discovered.
The recoverable portion of undiscovered petroleum initially-in-place is
referred to as prospective resources; the remainder is unrecoverable.
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:
Kevin Shaw, P.Eng, MBA
President and Chief Executive Officer
Madalena Ventures Inc.
Phone: (403) 262-1901 (Ext. 230)