Madalena Operations Update
June 25 2012 - 12:28PM
PR Newswire (Canada)
/NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR
DISSEMINATION IN THE UNITED STATES/ TSXV Trading Symbol: MVN
CALGARY, June 28, 2012 /CNW/ - Madalena Ventures Inc. and its
wholly owned subsidiary Madalena Austral SA ("Madalena" or the
"Company"), is pleased to provide an update on its operations in
Argentina. On the Coiron Amargo Block, initial flow testing results
of the Sierras Blancas formation on the CAN-5 development well
situated in the northern portion of the Coiron Amargo Block have
averaged 370 boepd (including 320 bopd), predominantly on a
5/16(th) inch choke over a 3.2 day period. The well will be
tied into the gas flowline network completed in April 2012 and oil
production trucked to a nearby sales point. The completion rig will
now move to test the recently completed CAN-7 development well
located within the CAN X-3 Sierras Blancas structure. The CAN-7
well was drilled in June 2012 to a total depth ("TD") of 10,390
feet and has been cased to TD. The well encountered the
hydrocarbon bearing Vaca Muerta unconventional shale formation as
well as the conventional Sierras Blancas formation. Open hole logs
could not be obtained during drilling due to continuous high
pressure inflows into the well bore whilst drilling through the
Vaca Muerta formation. The drilling rig is expected to return to
the block in two months in order to continue drilling
operations. The joint venture is also continuing its analysis
of the full diameter core from the CAS X-4 drilling location and
its evaluation of several candidate wells for fracture stimulation
in the Vaca Muerta shale formation. On the Curamhuele Block, the
service rig has been mobilized in order to prepare the Cur X-1 well
for a three stage fracture stimulation of the Lower Agrio shale
formation. Several hundred barrels of light gravity crude have been
flowed from the Lower Agrio formation in recent days in order to
de-pressurize the well in order to perform the pre-fracture
treatment well intervention. The hydraulic fracture treatment is
anticipated to commence in July 2012. On the Cortadera Block,
Apache continues to await specialized equipment required in order
to test the initial frac stage in the CorS X-1 vertical exploration
well. Further work to assess additional uphole formations
(Quintuco, Mulichinco, and Agrio zones) is expected to be carried
out following the Vaca Muerta test. About Madalena Madalena is an
independent, Canadian-based, international upstream oil and gas
company whose main business activities include exploration,
development and production of crude oil, natural gas liquids and
natural gas. The Company currently has production and exploration
operations in Argentina and is focused on international oil and gas
opportunities in South America. Madalena is publicly traded 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 necessarily indicative of long-term performance or of ultimate
recovery. 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. In addition, the Vaca Muerta
shale is an unconventional resource play which may be subject to
high initial decline rates. 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. 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. Madalena Ventures Inc.
CONTACT: please contact:Dwayne H. Warkentin President and Chief
Executive OfficerMadalena Ventures Inc.Phone: (403) 233-8010 ext
229Anthony J. PotterVice President, Finance and Chief Financial
OfficerMadalena Ventures Inc. Phone: (403) 233-8010 ext 233
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