Madalena International Operations Update: Cases CAN-8 for
Completion / Testing and Moving Rig to CAS X-5 Location to Drill
Ahead
TSXV Trading Symbol: MVN
CALGARY,
Dec. 18, 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 drilling operations in the Neuquén basin, Argentina.
On the Coiron Amargo Block (35% working
interest), the CAN-8 development well located 800 meters south east
of the existing CAN 7 oil producer on the northern portion of the
block (i.e. Coiron Amargo Norte), has been cased to a total depth
("TD") of 10,433 feet. Following the successful drilling of
the CAN-8 location and a review of the well data gathered
(including electric logs), oil and gas has been encountered in both
the unconventional Vaca Muerta shale and the conventional Sierras
Blancas zones of interest. The Vaca Muerta formation interval
encountered by the well was approximately 340 feet (or 104 meters)
thick and in the Sierras Blancas formation the well encountered an
approximate gross hydrocarbon column of 98 feet (or 30 meters).
Completion and testing in the Sierras Blancas formation is expected
to commence in early 2013. Upon a successful test, the CAN-8
location is expected to be tied-in and placed on production in Q1
2013.
The drilling rig is now moving to the southern
portion of the block (i.e. Coiron Amargo Sur) to drill the CAS X-5
exploration well which is located on the west side of the block
approximately 10km west of the CAS X-2 location. The CAS X-5
location is also near an older well on the block which reported
recovery of an estimated 6 m3 (or 38 bbls) of 38 degree API crude
oil during a 6 hour drill stem test within the Vaca Muerta shale
formation. This vertical well is scheduled to be drilled to 11,150
feet in depth and has objectives to both, further delineate the
unconventional Vaca Muerta shale in the south-west portion of the
block and target the conventional Sierras Blancas horizon.
The CAS X-5 well is expected to reach total depth in January 2013.
About Madalena - International and Domestic Assets
Madalena is an independent, Canadian-based,
domestic and international 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 and is focused on the delineation of
its large in-place oil & gas unconventional resources, with
shale positions in the Vaca Muerta, Agrio and Los
Molles shales, while pursuing conventional development and
exploration opportunities originating from these unconventional
source rocks. Madalena holds 135,000 net acres across the
Coiron Amargo (35,027 net acres), Curamhuele (50,400 net acres) and
Cortadera (49,600 net acres) blocks.
Domestically, Madalena holds a significant
acreage position in Western
Canada, with a core area of operations located in the
Greater Paddle River Area, where the company holds 197 gross
(153 net) sections of land (78% average W.I.) across multiple light
oil and liquids-rich gas resource plays. Madalena's focus
domestically is to exploit its large inventory of horizontal
development locations in its Ostracod oil, Notikewin /
Falher / Wilrich liquids-rich
regionally stacked Mannville
channel trend, and Nordegg oil
& liquids-rich resource plays. Madalena also holds an
estimated 103 net sections (100% W.I.) which are prospective for
the Duvernay shale.
Madalena is publicly traded on the TSXV under
the symbol "MVN".
Reader Advisories
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 operational activities to be conducted by the
Company. 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.
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 Madalena. 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.
SOURCE Madalena Ventures Inc.