TSXV Trading Symbol: MVN
CALGARY, Feb. 28, 2013 /CNW/ - Madalena Ventures Inc.
(TSXV: MVN) (the "Company" or "Madalena") is pleased to provide the
following operational updates:
International Operations Update - Neuquén
Basin
On the Coiron Amargo Block (35% working
interest), the CAN-8 development well located 800 meters southeast
of the existing CAN-7 oil producer on the northern portion of the
block (i.e. Coiron Amargo Norte) which was cased to a total depth
("TD") of 10,433 feet in December
2012, was completed over the last few weeks following a
successful remedial cement squeeze executed across the Sierras
Blancas light oil zone, which is one of two oil zones encountered
in the wellbore. The CAN-8 well was then perforated without any
stimulation and production tested in the Sierras Blancas light oil
zone for a period of three days. The well flowed at an initial
flowing pressure of 750 psi and declined to 440 psi at the end of
the test period. The average production rates over the three day
test period were 482 bbls/day (168 bbls/day net) at an oil cut of
~96%, and 525 mcf/d (184 mcf/d net) of associated gas. Gas rates
were accurately measured over only the final 12 hours of the test
period.
Given the results of the test, the Company
placed this wellbore on production without further stimulation or a
fracture treatment to further assess the overall production
performance of the well. After 12 days of continuous production
CAN-8 is currently flowing at approximately 178 bbls/day gross (62
bbls/day net) at an oil cut of ~88% and 337 mcf/d gross (118
mcf/d net) of associated gas, at a relatively stable flowing
pressure of ~300 psi. This location may be further stimulated
in the Sierras Blancas in the future, and also has an approximate
340 foot (or 104 meter) thick section of unconventional Vaca Muerta
shale.
In 2013, Madalena is planning to have steady
operational activity on its International assets focused on a
combination of workovers and new development and exploration
drilling. Madalena expects to execute 6 to 7 gross new
drills, multiple workovers and additional seismic, focused on oil
in the Vaca Muerta shale alongside development work in the
Sierras Blancas at Coiron Amargo (35% W.I.), and the
go-forward evaluation of a thick ~577m Quintuco zone
(sourced from a thick ~520m Vaca Muerta shale which lies directly
below) on the Cortadera block (40% W.I.). Later in 2013, additional
high impact zones of interest may be further evaluated across
Madalena's assets, including further work in the Vaca Muerta shale,
the Lower Agrio shale and thick tight sands within the
Mulichinco.
Western Canada Operations Update - Greater
Paddle River Core Area
With the focus on production growth from its
three key resource plays in the Greater Paddle River area, Madalena
continues to make progress on its plan to drill, multi-stage frac
and tie-in four to five net horizontal wells prior to spring
break-up.
At Paddle River, the Company has recently
completed drilling two 100% W.I. horizontal Ostracod oil wells.
Multi-port liners have been run in each and fracing operations are
scheduled to commence in early March with plans to multi-stage frac
these two Ostracod horizontals back to back. Madalena expects both
wells to be on-stream prior to spring break-up. With a focus on oil
and liquids-rich horizontal development, the Company will continue
to exploit its 55 net sections on this resource play on an ongoing
basis through 2013.
In the Wildwood area, completion operations are
now underway at Madalena's recently drilled 100% W.I. Nordegg liquids-rich (estimated at over 100
bbls/mmcf) horizontal well. It is anticipated that once fracing has
been completed, the well will be tested and tied-in to Madalena's
local infrastructure. Madalena has 144 net sections on the
Nordegg resource play.
At Niton, the Company is finalizing construction
of its pipeline and wellsite facilities to enable its recently
drilled 100% W.I. Notikewin horizontal well to be placed on
production over the next week. The well was completed with a
multi-stage frac and was tested as disclosed in a January 17, 2013 press release.
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 approximately
200 gross (>150 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
and liquids-rich gas resource plays. Madalena also holds more than
100 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
and prove-up of its large petroleum in-place shale and
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 regularly 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 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.
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.
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.