CALGARY,
April 30, 2013 /CNW/ - Madalena
Ventures Inc. (TSXV: MVN) (the "Company" or "Madalena") is pleased
to provide information on the Company's unconventional shale
resources on its three land blocks within the Neuquen basin,
Argentina.
These resources were evaluated by Ryder Scott
Petroleum Consultants Ltd. ("Ryder Scott") in a report dated
effective December 31, 2012 (the
"Resource Report"). All of the Company's international properties,
which are located within the Neuquen basin, Argentina, were reviewed in the Resource
Report although not all of the potential resources and formations
were evaluated. All values disclosed herein are net to Madalena's
interest.
Highlights
- Madalena holds 135,000 net acres on the Coiron Amargo (35,027
net acres), Curamhuele (50,400 net acres) and Cortadera (49,600 net
acres) blocks within the Neuquen basin, respectively;
- The main zones of interest for the independent resource
evaluation focused on the Vaca Muerta shale, Lower Agrio
shale and Basal Quintuco with the evaluated resources
based on data from 19 delineation and discovery wells on the
blocks, 3D or 2D seismic coverage and core analysis.
The following are summary results of the
independent evaluation completed by Ryder Scott for all three
blocks held by Madalena. A further breakdown (by block) of
the petroleum initially in place and potential recoverable
resources are shown in a series of tables that follow.
- Best Case P50 total petroleum initially in place
("PIIP") of 34.8 billion barrels of oil equivalent ("boe")
(51 % crude oil and natural gas liquids ("NGLs")), comprised
of:
- Best Case P50 discovered PIIP ("DPIIP") of 257.4 million boe
(95 % crude oil and NGLs); and
- Best Case P50 undiscovered PIIP ("UPIIP") of 34.6 billion boe
(50 % crude oil and NGLs);
- Best case P50 contingent plus prospective recoverable
resources of 2.9 billion boe (45 % crude oil and NGLs),
comprised of:
- Best case P50 contingent recoverable resources of 19.4 million
boe (95 % crude oil and NGLs); and
- Best case P50 prospective recoverable resources of 2.8 billion
boe (45 % crude oil and NGLs).
Please see the tables (and notes thereto) and narrative that
follow for a detailed break-down of the calculation of these
amounts.
Disclosure of Resources
The Resource Report has been prepared in
accordance with the standards contained in the Canadian Oil and Gas
Evaluation Handbook (the "COGE Handbook") and National Instrument
51- 101 - Standards for Disclosure for Oil and Gas
Activities of the Canadian Securities Administrators ("NI
51-101"). The Resource Report provides a summary of the oil,
liquids & natural gas resources associated with Madalena's
assets and properties in the Neuquen basin, Argentina as at December 31, 2012. Madalena engaged Ryder Scott
to provide evaluations of its contingent and prospective
recoverable resources over all three of its land blocks in the
Neuquen basin with a focus on the Vaca Muerta shale, Lower Agrio
shale and Quintuco formations.
The Resource Report is based on certain factual
data supplied by the Company and Ryder Scott's opinion of
reasonable practice in the industry. The extent and character of
ownership and all factual data pertaining to the Corporation's
petroleum properties and contracts (except for certain information
residing in the public domain) were supplied by the Company to the
Ryder Scott and accepted without any further investigation. Ryder
Scott accepted this data as presented and neither title searches
nor field inspections were conducted. The recovery and resources
estimates for Madalena's assets and properties described herein are
estimates only and there is no guarantee that the estimated
resources will be recovered. The actual resources for Madalena's
assets and properties may be greater or less than those
calculated.
Ryder Scott has also identified certain
contingencies in order to convert the contingent recoverable
resources described herein and in the Resource Report into
developed reserves. These contingencies are specific to each
formation and are related to the maturity of these projects and
commercialization contingencies. There are no commercially
productive analog fields in this area of the basin to establish
expected production rates and recovery efficiencies at this time.
There may be risk that accumulations containing contingent
resources may not achieve commercial production.
Summary Tables for Unconventional Shale
Resources Across Three Blocks in the Neuquen Basin
The following tables provide a summary of the
findings from the Resource Report. Please see Appendix "A" to
this news release for some important definitions.
Total Petroleum
Initially In Place(1) |
(net to
Madalena) |
Oil, NGLs and
Natural Gas |
at December 31,
2012(2) |
|
|
|
|
|
|
|
|
|
|
|
Oil & NGLs
(MMbbl) |
Natural Gas
(Tcf) |
Oil & NGLs + Natural Gas
(MMboe) |
|
Low
Estimate
P90 |
Best
Estimate
P50 |
High
Estimate
P10 |
Low
Estimate
P90 |
Best
Estimate
P50 |
High
Estimate
P10 |
Low
Estimate
P90 |
Best
Estimate
P50 |
High
Estimate
P10 |
Lower
Agrio
Shale |
3,835.7 |
4,763.4 |
5,834.03.8 |
2.777 |
3.955 |
5.443 |
4,298.4 |
5,422.5 |
6,741.2 |
Basal
Quintuco |
46.8 |
108.8 |
184.8 |
16.234 |
22.706 |
29.003 |
2,752.4 |
3,893.1 |
5,018.6 |
Vaca
Muerta
Shale |
10,868.0 |
12,722.8 |
14,940.3 |
40.610 |
76.610 |
116.238 |
17,636.4 |
25,491.2 |
34,313.3 |
Total |
14,750.5 |
17,594.9 |
20,959.1 |
59.620 |
103.271 |
150.684 |
24,687.4 |
34,806.8 |
46,073.2 |
Note:
(1) "Total Petroleum Initially In Place" means DPIIP +
UPIIP. When calculating DPIIP, there is no material
production or reserves associated with these properties. Contingent
resources is the only category of DPIIP that has been categorized
as recoverable. Prospective resources is the only category of
UPIIP that has been categorized as recoverable. There is no
certainty that it will be commercially viable to produce any
portion of the contingent resources referred to in the table
above. There is no certainty that any portion of the
prospective resources referred to in the table above will be
discovered. If discovered, there is no certainty that it will be
commercially viable to produce any portion of these resources.
(2) These volumes are arithmetic sums of multiple
estimates of contingent & prospective resources, which
statistical principles indicate may be misleading as to volumes
that may actually be recovered. Readers should give attention to
the estimates of individual classes of resources and appreciate the
differing probabilities of recovery associated with each class as
explained herein. Details on the categories that comprise
these calculations are in the tables that follow. |
Contingent
Recoverable Resources(1) Plus Prospective
Recoverable Resources(2) |
(net to
Madalena) |
Oil, NGLs and
Natural Gas |
at December 31,
2012(3) |
|
|
|
|
|
|
|
|
|
|
|
Oil & NGLs
(MMbbl) |
Natural Gas
(Tcf) |
Oil & NGLs + Natural Gas
(MMboe) |
|
Low
Estimate
P90 |
Best
Estimate
P50 |
High
Estimate
P10 |
Low
Estimate
P90 |
Best
Estimate
P50 |
High
Estimate
P10 |
Low
Estimate
P90 |
Best
Estimate
P50 |
High
Estimate
P10 |
Lower
Agrio
Shale |
86.2 |
328.7 |
596.2 |
0.070 |
0.267 |
0.524 |
97.9 |
373.1 |
683.5 |
Basal
Quintuco |
5.6 |
14.0 |
27.2 |
1.745 |
2.932 |
4.569 |
296.5 |
502.6 |
788.7 |
Vaca
Muerta
Shale |
309.6 |
950.2 |
1,642.8 |
2.662 |
9.251 |
17.426 |
753.2 |
1,986.1 |
3,751.6 |
Total |
401.4 |
1,293.0 |
2,266.2 |
4.477 |
12.449 |
22.519 |
1,147.5 |
2,861.9 |
5,223.8 |
Note:
(1) There is no material production or reserves associated
with these properties. Contingent resources is the only category of
DPIIP that has been categorized as recoverable. There is no
certainty that it will be commercially viable to produce any
portion of the contingent resources referred to in the table
above.
(2) Prospective resources is the only category of UPIIP
that has been categorized as recoverable. There is no
certainty that any portion of the prospective resources referred to
in the table above will be discovered. If discovered, there is no
certainty that it will be commercially viable to produce any
portion of these resources.
(3) These volumes are arithmetic sums of multiple estimates of
contingent and prospective resources, which statistical principles
indicate may be misleading as to volumes that may actually be
recovered. Readers should give attention to the estimates of
individual classes of resources and appreciate the differing
probabilities of recovery associated with each class as explained
herein. Details on the categories that comprise this
calculation are in the tables that follow.
|
Block by Block Breakdown of the Company's Unconventional
Shale Resources at Coiron Amargo, Curamhuele and
Cortadera
Block #1: Coiron Amargo
A significant amount of seismic and well data
from the Coiron Amargo block was provided to Ryder Scott for their
evaluation. This included 311 sq. km. of 3D seismic covering
approximately 77% of the block and 2D seismic covering the
remainder. Wellbore data provided was geological and petrophysical
logs from a total of 15 wells, including logs from 11 recently
drilled wells and a full core through the Vaca Muerta from one
recent well. Geochemical analysis for total organic content and
kerogen type was provided from samples taken from six wells. On the
block, four wells have demonstrated oil production from the Vaca
Muerta shale, of which two of these wells have booked reserves.
At Coiron Amargo, Madalena has an estimated
3.1 billion boe (95% oil) of Best Case P50 TPIIP and best
case contingent plus prospective recoverable resources of over
280 million boe (95% oil). The following tables
provide a summary of the Company's net resources on its Coiron
Amargo block:
Coiron
Amargo
Discovered Petroleum Initially In Place (1)
(net to Madalena)
Oil, NGLs and Natural Gas
at December 31, 2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil & NGLs
(MMbbl) |
Natural Gas
(Tcf) |
Oil & NGLs + Natural Gas
(MMboe) |
|
Low
Estimate
P90 |
Best
Estimate
P50 |
High
Estimate
P10 |
Low
Estimate
P90 |
Best
Estimate
P50 |
High
Estimate
P10 |
Low
Estimate
P90 |
Best
Estimate
P50 |
High
Estimate
P10 |
Vaca
Muerta
Shale |
242.6 |
244.4 |
246.2 |
0.077 |
0.077 |
0.078 |
255.4 |
257.4 |
259.2 |
Note:
(1) When calculating DPIIP, there is no material production or
reserves associated with these properties. All DPIIP, other
than contingent resources, has been categorized as
unrecoverable. There is no certainty that it will be
commercially viable to produce any portion of the resources
referred to in the table above.
(2) These volumes are arithmetic sums of multiple estimates,
which statistical principles indicate may be misleading as to
volumes that may actually be recovered. Readers should give
attention to the estimates of individual classes of resources and
appreciate the differing probabilities of recovery associated
with each class as explained herein.
|
Coiron
Amargo
Contingent Recoverable Resources(1)
(net to Madalena)
Oil, NGLs and Natural Gas
at December 31, 2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil & NGLs
(MMbbl) |
Natural Gas
(Tcf) |
Oil & NGLs + Natural Gas
(MMboe) |
|
Low
Estimate
P90 |
Best
Estimate
P50 |
High
Estimate
P10 |
Low
Estimate
P90 |
Best
Estimate
P50 |
High
Estimate
P10 |
Low
Estimate
P90 |
Best
Estimate
P50 |
High
Estimate
P10 |
Vaca
Muerta
Shale |
5.8 |
18.3 |
30.6 |
0.002 |
0.006 |
0.01 |
6.1 |
19.3 |
32.2 |
Notes:
(1) There is no certainty that it will be
commercially viable to produce any portion of the resources
referred to in the table above.
|
Coiron
Amargo
Undiscovered Petroleum Initially In Place (1)
(net to Madalena)
Oil, NGLs and Natural Gas
at December 31, 2012 |
|
|
|
|
|
|
|
|
|
|
|
Oil & NGLs
(MMbbl) |
Natural Gas
(Tcf) |
Oil & NGLs + Natural Gas
(MMboe) |
|
Low
Estimate
P90 |
Best
Estimate
P50 |
High
Estimate
P10 |
Low
Estimate
P90 |
Best
Estimate
P50 |
High
Estimate
P10 |
Low
Estimate
P90 |
Best
Estimate
P50 |
High
Estimate
P10 |
Vaca
Muerta
Shale |
2,687.8 |
2,717.5 |
2,747.5 |
0.851 |
0.861 |
0.870 |
2,829.7 |
2,860.9 |
2,892.5 |
Notes:
(1) Prospective resources is the only category of UPIIP that
has been categorized as recoverable. There is no certainty
that any portion of the resources referred to in the table above
will be discovered. If discovered, there is no certainty that
it will be commercially viable to produce any portion
of these resources.
(2) These volumes are arithmetic sums of multiple estimates,
which statistical principles indicate may be misleading as to
volumes that may actually be recovered. Readers should give
attention to the estimates of individual classes of resources and
appreciate the differing probabilities of recovery associated
with each class as explained herein.
|
Coiron
Amargo
Prospective Recoverable Resources(1)
(net to Madalena)
Oil, NGLs and Natural Gas
at December 31, 2012 |
|
|
|
|
|
|
|
|
|
|
|
Oil & NGLs
(MMbbl) |
Natural Gas
(Tcf) |
Oil & NGLs + Natural Gas
(MMboe) |
|
Low
Estimate
P90 |
Best
Estimate
P50 |
High
Estimate
P10 |
Low
Estimate
P90 |
Best
Estimate
P50 |
High
Estimate
P10 |
Low
Estimate
P90 |
Best
Estimate
P50 |
High
Estimate
P10 |
Vaca
Muerta
Shale |
122.7 |
249.7 |
377.2 |
0.039 |
0.079 |
0.119 |
129.2 |
262.9 |
397.1 |
Notes:
(1) Prospective resources is the only category
of UPIIP that has been categorized as recoverable. There is no
certainty that any portion of the resources referred to in the
table above will be discovered. If discovered, there is no
certainty that it will be commercially viable to produce any
portion of these resources.
Block #2: Curamhuele
A moderate amount of seismic and well data from
the Curamhuele block was provided to Ryder Scott for their
evaluation. This included 100 sq. km. of 3D seismic covering
approximately 44% of the block and 2D seismic covering the
remainder. Wellbore data provided was geological and petrophysical
logs from two recent wells. Geochemical analysis for total organic
content and kerogen type was provided from samples taken from two
wells and outcrop samples from the Lower Agrio and Vaca Muerta
formations. On the block, two wells have demonstrated oil
production from the Lower Agrio shale.
At Curamhuele, Madalena has over 23.7 billion
boe (61% oil) of Best Case P50 TPIIP and best case contingent
plus prospective recoverable resources of over 1.5 billion boe
(65% oil). The following tables provide a summary of the
Company's net resources on its Curamhuele block:
Curamhuele
Undiscovered Petroleum Initially In Place (1)
(net to Madalena)
Oil, NGLs and Natural Gas
at December 31, 2012 |
|
|
|
|
|
|
|
|
|
|
|
Oil & NGLs
(MMbbl) |
Natural Gas
(Tcf) |
Oil & NGLs + Natural Gas
(MMboe) |
|
Low
Estimate
P90 |
Best
Estimate
P50 |
High
Estimate
P10 |
Low
Estimate
P90 |
Best
Estimate
P50 |
High
Estimate
P10 |
Low
Estimate
P90 |
Best
Estimate
P50 |
High
Estimate
P10 |
Lower
Agrio
Shale |
3,835.7 |
4,763.4 |
5,834.0 |
2.777 |
3.955 |
5.443 |
4,298.4 |
5,422.5 |
6,741.2 |
Vaca
Muerta
Shale |
7,884.8 |
9,642.9 |
11,762.2 |
17.405 |
52.017 |
90.208 |
10,785.7 |
18,312.3 |
26,796.9 |
Total |
11,720.5 |
14,406.2 |
17,596.2 |
20.182 |
55.971 |
95.651 |
15,084.2 |
23,734.8 |
33,538.1 |
Notes:
(1) Prospective resources is the only category of UPIIP that
has been categorized as recoverable. There is no certainty that any
portion of the resources referred to in the table above will be
discovered. If discovered, there is no certainty that it will
be commercially viable to produce any portion of these
resources.
(2) These volumes are arithmetic sums of multiple estimates,
which statistical principles indicate may be misleading as to
volumes that may actually be recovered. Readers should give
attention to the estimates of individual classes of resources and
appreciate the differing probabilities of recovery associated
with each class as explained herein.
|
Curamhuele
Prospective Recoverable Resources(1)
(net to Madalena)
Oil, NGLs and Natural Gas
at December 31, 2012 |
|
|
|
|
|
|
|
|
|
|
|
Oil & NGLs
(MMbbl) |
Natural Gas
(Tcf) |
Oil & NGLs + Natural Gas
(MMboe) |
|
Low
Estimate
P90 |
Best
Estimate
P50 |
High
Estimate
P10 |
Low
Estimate
P90 |
Best
Estimate
P50 |
High
Estimate
P10 |
Low
Estimate
P90 |
Best
Estimate
P50 |
High
Estimate
P10 |
Lower
Agrio
Shale |
86.1 |
328.6 |
596.2 |
0.070 |
0.266 |
0.524 |
97.8 |
373.0 |
683.5 |
Vaca
Muerta
Shale |
174.7 |
667.4 |
1,207.4 |
0.663 |
2.942 |
8.096 |
285.2 |
1,157.6 |
2,556.7 |
Total |
260.8 |
996.0 |
1,803.6 |
0.733 |
3.208 |
8.620 |
382.9 |
1,530.6 |
3,240.2 |
Notes:
(1) There is no certainty that any portion
of the resources referred to in the table above will be discovered.
If discovered, there is no certainty that it will be commercially
viable to produce any portion of these resources.
Block #3: Cortadera
A moderate amount of seismic and well data from
the Cortadera block was provided to Ryder Scott for their
evaluation. This included 118 sq. km. of 3D seismic covering
approximately 24% of the block. Wellbore data provided was
geological and petrophysical logs from two recent wells.
Geochemical analysis for total organic content and kerogen type was
provided from samples taken from one well. On the block, two wells
have demonstrated natural gas production from tests in the Vaca
Muerta shale.
At Cortadera, Madalena has over 7.9 billion
boe (97% gas) of Best Case P50 TPIIP and best case contingent
plus prospective recoverable resources of over 1 billion boe
(97% gas). The following table provides a summary of the
Company's net resources on its Cortadera block:
Cortadera
Undiscovered Petroleum Initially In Place(1)
(net to Madalena)
Oil, NGLs and Natural Gas
at December 31, 2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil & NGLs
(MMbbl) |
Natural Gas
(Tcf) |
Oil & NGLs + Natural Gas
(MMboe) |
|
Low
Estimate
P90 |
Best
Estimate
P50 |
High
Estimate
P10 |
Low
Estimate
P90 |
Best
Estimate
P50 |
High
Estimate
P10 |
Low
Estimate
P90 |
Best
Estimate
P50 |
High
Estimate
P10 |
Basal
Quintuco |
46.8 |
108.8 |
184.8 |
16.234 |
22.706 |
29.003 |
2,752.4 |
3,893.1 |
5,018.6 |
Vaca
Muerta
Shale |
52.8 |
118.0 |
184.4 |
22.277 |
23.656 |
25.082 |
3,765.6 |
4,060.6 |
4,364.7 |
Total |
99.6 |
226.8 |
369.2 |
38.510 |
46.362 |
54.085 |
6,518.0 |
7,953.7 |
9,383.3 |
Notes:
(1) Prospective resources is the only category of UPIIP that
has been categorized as recoverable. There is no certainty that any
portion of the resources referred to in the table above will be
discovered. If discovered, there is no certainty that it will
be commercially viable to produce any portion of these
resources.
(2) These volumes are arithmetic sums of multiple estimates,
which statistical principles indicate may be misleading as to
volumes that may actually be recovered. Readers should give
attention to the estimates of individual classes of resources and
appreciate the differing probabilities of recovery associated
with each class as explained herein.
|
Cortadera
Prospective Recoverable Resources(1)
(net to Madalena)
Oil, NGLs and Natural Gas
at December 31, 2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil & NGLs
(MMbbl) |
Natural Gas
(Tcf) |
Oil & NGLs + Natural Gas
(MMboe) |
|
Low
Estimate
P90 |
Best
Estimate
P50 |
High
Estimate
P10 |
Low
Estimate
P90 |
Best
Estimate
P50 |
High
Estimate
P10 |
Low
Estimate
P90 |
Best
Estimate
P50 |
High
Estimate
P10 |
Basal
Quintuco |
5.6 |
14.0 |
27.2 |
1.745 |
2.932 |
4.569 |
296.5 |
502.6 |
788.7 |
Vaca
Muerta
Shale |
6.4 |
14.8 |
27.6 |
1.958 |
3.189 |
4.428 |
332.7 |
546.3 |
765.6 |
Total |
12.0 |
28.8 |
54.8 |
3.703 |
6.121 |
8.997 |
629.2 |
1,048.9 |
1,554.3 |
Notes:
(1) Prospective resources is the only
category of UPIIP that has been categorized as recoverable. There
is no certainty that any portion of the resources referred to in
the table above will be discovered. If discovered, there is no
certainty that it will be commercially viable to produce any
portion of these resources.
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's core area of operations
is located in the Greater Paddle River area of west-central
Alberta where the company holds
approximately 200 gross (>150 net) sections of land (78% average
W.I.) encompassing multiple light oil and liquids-rich gas resource
plays. Madalena's domestic focus is to exploit its large inventory
of horizontal development locations on 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 where it is focused on the
delineation of vast petroleum in-place shale & unconventional
resources in the Lower Agrio, Mulichinco, Quintuco and Vaca Muerta
shales. The Company is also developing a conventional oil play in
the Sierras Blancas formation.
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 resources of the Company and other oil and gas
information. 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.
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.
APPENDIX "A"
DEFINITIONS
In addition, the following sets out the applicable definition
for each of the resource categories as set out in the COGE
Handbook, which are used in this news release.
"Contingent resources" |
Definition: Those quantities
of petroleum estimated, as of a given date, to be potentially
recoverable from known accumulations using established technology
or technology under development, but which are not currently
considered to be commercially recoverable due to one or more
contingencies.
Contingencies may include factors such as economic, legal,
environmental, political, and regulatory matters or a lack of
markets. It is also appropriate to classify as contingent resources
the estimated discovered recoverable quantities associated with a
project in the early evaluation stage.
|
|
|
"Discovered petroleum initially-in-place"
or
"discovered resources"
or "DPIIP" |
Definition: That quantity of
petroleum that is estimated, as of a given date, to be contained in
known accumulations prior to production.
The recoverable portion of discovered petroleum initially-in-place
includes production, reserves and contingent resources; the
remainder is unrecoverable.
|
|
|
"Prospective resources" |
Definition: Those quantities
of petroleum estimated, as of a given date, to be potentially
recoverable from undiscovered accumulations by application of
future development projects.
Prospective resources have both an associated chance of discovery
and a chance of development.
|
|
|
"Total petroleum initially-in-place",
"total resources" or "TPIIP" |
Definition: That quantity of
petroleum that is estimated to exist originally in naturally
occurring accumulations; equal to DPIIP plus UPIIP.
It includes that quantity of petroleum that is estimated, as of a
given date, to be contained in known accumulations, prior to
production, plus those estimated quantities in accumulations yet to
be discovered.
|
|
|
"Undiscovered petroleum
initially-in-place", "undiscovered resources" or
"UPIIP" |
Definition: That quantity of
petroleum that is estimated, on a given date, to be contained in
accumulations yet to be discovered.
The recoverable portion of undiscovered petroleum
initially-in-place is referred to as prospective resources; the
remainder is unrecoverable. |
SOURCE Madalena Ventures Inc.