TSXV Trading Symbol: MVN
CALGARY,
April 15, 2013 /CNW/ - Madalena
Ventures Inc. (TSXV: MVN) (the "Company" or "Madalena") is pleased
to provide operational updates across its Western Canadian
("domestic") and International assets.
With the focus on production growth to start 2013,
Madalena's productive capability is approximately 2,000 boe/d (44%
oil and natural gas liquids ("NGLs")), representing a 900% increase
from the Company's October 2012
production level. The Company has a current base production of
approximately 1,200 boe/d (43% oil & NGLs) with in excess of
1,200 boe/d of tested volumes behind pipe from recently completed
Ostracod horizontal development wells.
Western Canada Operations Update - Greater
Paddle River Core Area
Horizontal Resource Play #1 - Ostracod
light oil
At Paddle River, fracing and testing operations
have been completed at Madalena's two recently drilled 100% working
interest Ostracod horizontal oil wells. The first well reached a
total depth of 2,776 metres, including a 1,056 metre horizontal
trajectory. Completion operations included a 13-stage multi-frac
program where a total of 6,094 barrels of water-based load fluid
was pumped. The well was subsequently production tested for three
days during which time the well flowed continuously and recovered a
total of 4,633 barrels of load fluid (76%). During the three day
test, the well flowed 37° API oil and gas at an average rate of 707
boe/d (39% oil). Flowing pressures remained relatively stable at
approximately 1,400 kPa during the final 24 hours of the test.
After accounting for shrinkage and NGLs recovery at the local
production facility, sales production over the final 24 hours would
equate to approximately 719 boe/d (46% oil & NGLs).
The second well reached a total depth of 2,880
metres, including a 1,140 metre horizontal trajectory. Completion
operations included a 14-stage multi-frac program where a total of
6,320 barrels of water-based load fluid was pumped. The well was
subsequently production tested for three days during which time the
well flowed continuously and recovered a total of 2,430 barrels of
load fluid (38%). During the three day test, the well flowed 33°
API oil and gas at an average rate of 566 boe/d (24% oil). Flowing
pressures remained relatively stable at approximately 5,400 kPa
during the final 24 hours of the test. After accounting for
shrinkage and NGLs recovery at the local production facility, sales
production over the final 24 hours would equate to approximately
547 boe/d (38% oil & NGLs).
Both wells are currently shut-in and operations to
equip them for production and tie-in the solution gas to existing
Madalena facilities are ongoing. The Company anticipates that these
two horizontal wells will be brought on production during the
second quarter of 2013.
While Madalena continues to be very encouraged by
the initial results from these horizontal wells, it cautions that
these test results are not indicative of their long-term
performance. Ongoing technical work continues to improve the
Company's understanding of its Paddle River Ostracod oil play and
the ultimate potential of the assets.
Madalena controls approximately 55 net sections of
land and a significant inventory of drill-ready horizontal
locations on the Ostracod oil trend in the Paddle River area.
The Company plans to drill additional horizontal wells on this play
throughout the remainder of 2013, focusing on increasing production
and reserves.
Horizontal Resource Play #2 - Stacked
Mannville Channel Trend
At Niton, the Company's recently drilled and
completed 100% working interest Notikewin horizontal well was
placed on production in Q1 2013. Since early March, the well has
produced at relatively stable rates of approximately 400 boe/d (14%
NGL's). Madalena has 133 net sections of land across its
regional Mannville channel trends
and has a significant inventory of horizontal drilling locations
focussed on the liquids-rich Notikewin and Wilrich formations.
Horizontal Resource Play #3 - Nordegg oil & liquids-rich gas
In the Wildwood area, Madalena is continuing its
evaluation of its recently drilled and completed 100% working
interest Nordegg horizontal well.
With the onset of spring break-up the Company has temporarily
shut-down operations on this location with plans to re-commence
evaluation operations as soon as road and lease conditions improve.
Madalena holds 144 net sections of Nordegg rights containing or proximal to
vertical well production which produces oil, and/or high
liquids-rich content gas.
International Operations Update - Neuquen
Basin
In Argentina,
Madalena has commenced its planned 2013 activity program involving
a combination of workovers, 3D seismic, new development drilling,
and exploration drilling focused on the Company's unconventional
resources (in the Vaca Muerta shale and Lower
Agrio shale), alongside conventional zones of interest.
In March, Madalena and its partners commenced the
first of multiple planned workovers for 2013 at its Coiron Amargo
(35% W.I.) block to optimize current field production. To
begin the workover program, Madalena conducted a successful cement
squeeze, perforation and fracture stimulation of its CAN X-3 well
to enhance oil recoveries from the Sierras Blancas light oil
formation. Prior to the workover, CAN X-3 was producing
approximately 25 bbls/d of oil gross (9 bbls/d net). After
completing the workover, CAN X-3 was put back on stream in late
March and is currently producing approximately 115 bbls/d of oil
gross (40 bbls/d net). Additional workovers will be executed
in 2013 to optimize the existing field assets.
In early May, the Company anticipates commencing 3D
seismic operations to acquire up to 160 square kilometers of data
in the south-west and east-central areas of the Coiron Amargo
block. This seismic data is being acquired directly
offsetting a horizontal multi-stage frac well that was recently
tested in the regional Vaca Muerta shale, resulting in a new oil
discovery by the operator of the block (a major integrated E&P
company).
Madalena and its partners at Coiron Amargo are
currently working to contract a rig for an upcoming drilling
program involving multiple Vaca Muerta shale wells in the southern
part of the block and the Company's first horizontal Sierras
Blancas (light oil) development well in the north. Madalena
expects to mobilize a drilling rig for this program during the
second quarter of 2013.
Madalena is also working to move forward activities
on its other two blocks within the Neuquen basin at both Cortadera
(40% W.I.) and Curamhuele (90% W.I.).
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 & 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 of
its large petroleum in-place shale & unconventional resources
in the Vaca Muerta and Agrio shales, alongside plays in the
Quintuco, Mulichinco and Sierras Blancas 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.