TSXV Trading Symbol: MVN
CALGARY, Jan. 17, 2013 /CNW/ - Madalena Ventures Inc. (the
"Company" or "Madalena" (TSX VENTURE: MVN) is pleased to provide an
update of its operations in both Western
Canada and Internationally.
Western Canada Operations Update - Greater
Paddle River Core Area
Horizontal Resource Play #1 -
Ostracod light oil
On October 15,
2012 the Company placed its most recent Ostracod horizontal
oil well (Madalena 100% W.I.) on production in the Paddle River
area. The IP30 rate was 307 boe/d (65% oil & ngl). The well
continues to flow without the assistance of pumping equipment at
rates of approximately 270 boe/d after 3 months. Madalena plans to
spud a 100% working interest offsetting horizontal well within the
next 2 weeks and may subsequently drill an additional 100% working
interest horizontal location prior to spring break-up.
Horizontal Resource Play #2 - Stacked Mannville
Channel Trend
In December 2012, the Company drilled
a 3038 meter horizontal Notikewin well (Madalena 100% W.I.) in the
Niton area. The well has a horizontal trajectory of approximately
1100 meters which was multi-stage fraced in 13 stages. The well was
flowed to clean-up and initially tested over a 9 day period. During
this time, gas rates increased steadily to 5.5 mmcf/d with an
expected 28 bbls/mmcf of liquids once tied-in and on
production. Throughout the clean-up test, 100% of the 689 m3
of load fluid was recovered. Average production rates over the
final 24 hours of the test were 5.5 mmcf/d and flowing pressures
remained relatively stable at approximately 3000 kPa. The plan is
for this horizontal to be tied-in and on production around
mid-February. The flow-back information disclosed above should be
considered preliminary and is not necessarily indicative of the
long-term performance of the well.
Horizontal Resource Play #3 - Nordegg oil & liquids-rich gas
In December 2012 Madalena also
spudded a horizontal Nordegg well
(Madalena 100% W.I.) in the Wildwood area. The well has been
drilled to a total depth of approximately 3000 meters with
approximately 1100 meters of horizontal trajectory. The Company is
currently planning a multi-stage frac operation to be undertaken
later in January. With success, it is expected that the well will
be tied-in and equipped such that gas and liquids (estimated at
over 100 bbls/mmcf) production would commence in early March.
With the focus on production growth from its
three key resource plays in the Greater Paddle River Area, Madalena
continues to move forward on its plan to drill, multi-stage frac
and tie-in four to five horizontal wells prior to spring
break-up.
International Operations Update - Neuquen
Basin
In Argentina,
exploration and delineation activity continues along with progress
on plans for continuation of the blocks beyond the end of their
initial exploration periods in the fourth quarter of 2013.
Currently, Madalena and its partners are drilling the CAS X-5
exploration well in the southern portion of the Coiron Amargo block
(Madalena 35% W.I.) to continue to delineate the Vaca Muerta shale
on the block. This vertical well is expected to reach total
depth over the next week. At the CAN 8 location (previously
drilled in December 2012 on the
northern portion of the Coiron Amargo block), a cement bond log was
run in the cased wellbore and a remedial cement job is required
across the Sierras Blancas light oil zone prior to completion
execution. The plan is to move onto the CAN-8 location before
the end of January to conduct this remedial work, and upon success,
move forward with a completion in the Sierras Blancas. The CAN-8
well has hydrocarbon on logs in both the Sierras Blancas and Vaca
Muerta shale.
About Madalena - Domestic and International 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.
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/Wilrich liquids-rich gas,
and Nordegg oil & liquids-rich
resource plays. Madalena also holds 102 net sections (100%
W.I.) which are prospective for the Duvernay shale.
Internationally, Madalena holds three large
blocks within the prolific Neuquén basin in Argentina and is focused on the delineation /
prove-up of its large in-place shale & unconventional resources
in the Vaca Muerta and Agrio shales, alongside high impact plays in
the Quintuco and Mulichinco formations. 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.
Madalena trades on the TSX Venture Exchange
under the symbol MVN. Basic corporate information, recent
news releases and periodically updated corporate presentations are
available on the Company's website at
www.madalena-ventures.com.
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 Notikewin and Vaca Muerta shales are
unconventional and/or horizontal resource plays 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.