MVN Madalena Energy Inc

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES


Madalena, ("Madalena" or the "Corporation") (TSX VENTURE:MVN) is pleased to
announce that operations to evaluate pressures and potential productivity from
two existing well bores on the Curamhuele Block in the Neuquen Province of
Argentina have been completed with successful results.


The Corporation is pleased to announce that the previously suspended Yapai X-1
well located on the Curamhuele Block was tested with positive results over a
period of 42 hours incorporating various controlled choke settings of between 9
and 18 millimeters. During this period a total of 14 million cubic feet was
flared for an average test rate of 8 million cubic feet per day and varying
rates of light oil and condensate production from the Mulichinco formation. The
flow rate measured through a nine millimeter choke over a period of 12 hours was
7 million cubic feet per day of gas, an average of 240 barrels per day of
hydrocarbon liquids and 42 barrels per day of water at a flowing pressure of
2,350 pounds per square inch ("psi"). The hydrocarbon liquid gravities tested
indicated the presence of high quality hydrocarbons of between 44 API to 53 API
for oil and condensate. The shut-in wellhead pressure before and after the test
was 4,800 psi. The Yapai X-1 well was originally drilled in 1990 to a depth of
3883 meters and sidetracked in 1995. The structural trap encountered in this
well is not the primary prospect for the Curamhuele Block and represents a
significant additional target for the Corporations future exploration drilling
plans.


Madalena is also pleased to announce that following the removal of well plugs
from a second well bore located on the Curamhuele Block, the well known as
Curamhuele X-1, the well produced approximately 170 barrels of oil from the
Lower Agrio formation over five flow periods of between four to six hours
conducted during a five day period. The drilling logs for the existing
Curamhuele X-1 wellbore indicate that in addition to the oil recovered from this
test there is a significant column of additional potential hydrocarbon pay
within the Lower Agrio as well as the Mulichinco formation which was
successfully tested in the aforementioned Yapai X-1 wellbore. Madalena is
reviewing the new production information in conjunction with previous log and
well data and is preparing plans for completing and testing the previously
untested intervals in the Lower Agrio and Mulichinco formations within this
wellbore. The Curamhuele X-1 well was originally drilled in 1995 to a depth of
2807 meters and deepened to 3444 meters in 1999 and is located approximately 7
kilometers from the Yapai X-1 wellbore. The Lower Agrio formation tested in this
well is not the primary target for the Curamhuele Block and represents another
significant additional target for Madalena's upcoming exploration drilling
plans.


Dwayne Warkentin, Senior Vice President and COO of Madalena comments, "We are
very pleased with the results of the production and pressure tests conducted on
the Curamhuele Block. The tests reveal we have a potentially significant
hydrocarbon accumulation on the block which we have identified at a low cost to
the shareholders. We are currently in the process of shooting a 3D seismic
program over a portion of the Curamhuele Block. This program should further
delineate not only the extent of the Mulichinco formation which we have
successfully tested on our block, but will also identify the possible extension
of the Avile and Troncoso formations, which are currently producing at shallower
depths from the offsetting Filo Morado field to the north, and which are the
primary plays on this block." The Filo Morado field was discovered in 1987 and
has recovered 63 million barrels of oil equivalent to date according to the
National Secretary of Energy of Argentina.


Madalena has a majority 70% working interest in the Curamhuele Block,
representing potentially significant upside to shareholders. Madalena's combined
net expenditure for the testing operations conducted to date on the two
Curamhuele wellbores is less than $US 200,000.00. The Corporation and its
partners will continue to analyze the testing data from the Curamhuele wells and
will evaluate the potential development, tie-in and marketing options available.


The Corporation also owns a 70% majority working interest in the Cortadera and
Coiron Amargo Blocks in the Neuquen Basin of Argentina where 3D seismic programs
and preparation of drilling locations are currently underway.


About Madalena

Madalena is a publicly traded international junior Canadian oil and gas
exploration company trading on the Toronto Venture Stock Exchange under the
symbol "MVN". The Company has assets in Canada, Tunisia and Argentina and is
actively evaluating international oil and gas opportunities with a primary focus
on South America and North Africa.


MADALENA VENTURES INC.

On behalf of the Board

Ken Broadhurst, President

Forward Looking Statements

Certain information set forth in this press release, including a discussion of
future plans and operations, contains forward looking statements that involve
substantial known and unknown risks and uncertainties. The test results obtained
from wells should not be construed as indicative of potential or ultimate
production rates as longer term production will be required in order to
ascertain stable production rates. A barrel of oil equivalent, (boe), derived by
converting gas to oil in the ratio of six thousand cubic feet of gas to one
barrel of oil, may be misleading particularly if used in isolation. A boe
conversion is based on an energy equivalency conversion method primarily
applicable at the burner tip and does not represent a value equivalency at the
wellhead.


These forward-looking statements are subject to numerous risks and
uncertainties, some of which are beyond management's control, including but not
limited to, the impact of general economic conditions, industry conditions,
fluctuation of commodity prices, fluctuation of foreign exchange rates,
environmental risks industry competition, availability of qualified personnel
and management, stock market volatility, timely and cost effective access to
sufficient capital from internal and external sources, as well as risks inherent
in operating in foreign jurisdictions, including varying judicial or
administrative guidance on interpreting rules and regulations and a higher
degree of discretion on the part of governmental authorities. Actual results,
performance or achievement could differ materially from those expressed in or
implied by these forward-looking statements.


This news release does not constitute an offer to sell or the solicitation of
any offer to buy the securities in any jurisdiction. The Common Shares will not
be and have not been registered under the United States Securities Act of 1933
and may not be offered or sold in the United States, or to a U.S. person, absent
registration, or an applicable exemption therefrom.

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