CALGARY, May 28, 2013 /CNW/ - Madalena Ventures Inc.
(TSXV: MVN) (the "Company" or "Madalena") is pleased to announce
the filing on SEDAR of the unaudited interim consolidated financial
statements and related Management's Discussion and Analysis
("MD&A") for the three months ended March 31, 2013. Selected financial and
operational information is outlined below and should be read in
conjunction with Madalena's unaudited interim consolidated
financial statements and related MD&A which are available for
review under the Company's profile at www.sedar.com and on the
Company's website at www.madalena-ventures.com.
Summary Financial and Operational Highlights
|
|
|
|
|
$CDN |
|
Three months ended
March 31 |
|
|
|
2013 |
2012 |
Financial |
|
|
|
|
Oil and gas revenue |
|
|
3,609,743 |
396,773 |
Net loss |
|
|
(2,319,727) |
(1,167,365) |
Per share - basic and diluted |
|
|
(0.01) |
- |
Capital expenditures |
|
|
16,974,882 |
6,691,664 |
Working capital |
|
|
12,364,101 |
70,593,691 |
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|
|
|
Equity outstanding |
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|
|
|
Common shares |
|
|
316,090,885 |
314,307,185 |
Stock options |
|
|
20,696,663 |
13,690,366 |
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|
Operating |
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|
Average Daily Production |
|
|
|
|
Crude oil and condensate - Bbls/d |
|
|
316 |
62 |
Natural gas - Mcf/d |
|
|
2,677 |
- |
NGLs - Bbls/d |
|
|
109 |
- |
Total - boe /d(1) |
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|
872 |
62 |
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Average Sales Prices |
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Crude oil and condensate - $/Bbl |
|
|
78.63 |
77.19 |
Natural gas - $/Mcf |
|
|
3.29 |
- |
NGLs - $/Bbl |
|
|
58.79 |
- |
Total - $/boe(1) |
|
|
45.99 |
77.19 |
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|
|
Operating Netbacks |
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|
|
|
$/boe(1) |
|
|
15.37 |
(0.62) |
(1) Refer to - "Oil, Natural Gas
Liquids and Natural Gas Conversions to boe" in Reader
Advisories. |
FIRST QUARTER 2013 HIGHLIGHTS AND 2013 CAPITAL
BUDGET
- Madalena continues to maintain a strong financial position with
positive working capital, no bank debt and increasing production
levels. The Company has established, and the Board of Directors has
approved, a $34 million capital
budget for 2013 of which $17 million
was spent in the first quarter. This budget will be funded from
existing working capital, cash flow from operations and the
Company's bank lines of credit. For the remainder of 2013,
Madalena anticipates drilling 6 to 7 additional gross wells,
executing multiple re-entries and workovers, and conducting seismic
activity. Operations for the balance of 2013 will be primarily
focused on a combination of unconventional shale drilling
internationally and horizontal development drilling
domestically.
International Operations in First Quarter
2013 - Neuquen Basin, Argentina
- Completed the CAN-8 well at Coiron Amargo Norte in the Sierras
Blancas light oil formation with initial production from the well
commencing in February 2013.
The CAN-8 well was placed on production after perforating the
Sierras Blancas without any fracture stimulation. The well is
currently producing approximately 150 boe/d (53 boe/d net). This
well may be stimulated in the Sierras Blancas in the future and
also has approximately a 340 foot (104 meter) thick section of oil
in the unconventional Vaca Muerta shale.
- Work continued on construction of three surface facility
components at Coiron Amargo Norte which are anticipated to reduce
future operating costs, conserve all produced solution gas and
provide the facility operating capacity to bring on additional
volumes from planned drilling targeting the Vaca Muerta shale and
Sierras Blancas formations in 2013 and beyond.
- At Coiron Amargo Sur, drilled and cased the CAS X-5 exploration
well which confirmed the high quality of Vaca Muerta shale on the
block. The CAS X-5 location encountered approximately
325 feet (100 meters) of Vaca Muerta shale on logs with an average
total organic content of over 4% and an average of 7% porosity in
the lower Vaca Muerta.
- In March 2013, Madalena and its
partners commenced the first of multiple planned workovers through
2013 to optimize current field production. A successful
cement squeeze, perforation and fracture stimulation was conducted
on the CAN X-3 well to enhance oil recoveries in the Sierras
Blancas light oil formation. After completing the workover,
CAN X-3 was put back on stream in late March at over 115 bbls/d (40
bbls/d net) which represents a significant increase from the
pre-workover level of 25 bbls/d (9 bbls/d net).
Domestic Operations in First Quarter 2013 -
Greater Paddle River Area, Alberta, Canada
Domestically, Madalena continued its planned
horizontal development program focused on production growth from
its light oil and liquids-rich resource plays. During the
first quarter, execution work on four 100% working interest
horizontal multi-stage fraced wells was carried out with progress
made on three key resource plays as follows:
- At Niton, completed and tied-in a liquids-rich Notikewin
horizontal gas well which was placed on production in early March
averaging a pro-rated 345 boe/d (14% NGLs) for the month.
- At Paddle River, drilled and completed two additional Ostracod
horizontal oil wells during the first quarter. In May 2013, both wells were subsequently equipped
with the solution gas tied-in to existing Madalena facilities and
are producing at restricted rates pending completion of a pipeline
twinning project and third party compression upgrades currently
underway to accommodate increased volumes from these wells and
future horizontal development in the area.
- At Wildwood, drilled and subsequently initiated completion and
evaluation on a Nordegg horizontal
well. With the onset of spring break-up the Company temporarily
shut-down operations on this location with plans to re-commence
evaluation operations post break-up when road and lease conditions
permit.
- In support of the Company's plan to recommence drilling
operations in the greater Paddle River area subsequent to spring
break-up, Madalena conducted upfront survey, permitting and in some
cases road and lease preparation work associated with additional
horizontal development locations on the Company's multiple resource
plays.
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 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 emerging 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 shale and unconventional resources in the Vaca
Muerta and Lower Agrio shales, in addition to tight sand plays in
the Mulichinco and Quintuco. The Company is also developing a
conventional oil play in the Sierras Blancas formation. 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.
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
Forward Looking Information
The information in this news release contains
certain forward-looking statements. These statements relate to
future events or our future performance, in particular with respect
to the Company's reserves and production from its properties. 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.
Reserves and Other Oil and Gas
Disclosure
Any references in this news release to test
rates, flow rates, initial and/or final raw test or production
rates, early production, test volumes behind pipe 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.