TSXV Trading Symbol: MVN
CALGARY,
Aug. 26, 2013 /CNW/ - Madalena Energy
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 and six months ended
June 30, 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
|
|
|
|
|
|
Three months ended
June 30 |
Six months ended
June 30 |
$CDN |
2013 |
2012 |
2013 |
2012 |
Financial |
|
|
|
|
Oil and gas revenue |
3,877,254 |
374,734 |
7,486,997 |
771,507 |
Net loss |
(320,306) |
(1,847,894) |
(2,640,034) |
(3,015,349) |
Per share - basic and diluted |
(0.00) |
(0.01) |
(0.01) |
(0.01) |
Capital expenditures |
6,053,500 |
6,217,529 |
23,028,382 |
12,909,193 |
Working capital |
7,780,138 |
63,260,017 |
7,780,138 |
63,260,017 |
|
|
|
|
|
Equity outstanding |
|
|
|
|
Common shares |
316,840,885 |
314,307,185 |
316,840,885 |
314,307,185 |
Stock options |
15,371,665 |
16,323,699 |
15,371,665 |
16,323,699 |
|
|
|
|
|
Operating |
|
|
|
|
Average Daily Production |
|
|
|
|
Crude oil and condensate - Bbls/d |
297 |
66 |
307 |
64 |
Natural gas - Mcf/d |
3,491 |
- |
3,086 |
- |
NGLs - Bbls/d |
140 |
- |
125 |
- |
Total - boe /d(1) |
1,020 |
66 |
946 |
64 |
|
|
|
|
|
Average Sales Prices |
|
|
|
|
Crude oil and condensate - $/Bbl |
78.77 |
76.64 |
78.70 |
76.92 |
Natural gas - $/Mcf |
3.57 |
- |
3.45 |
- |
NGLs - $/Bbl |
47.91 |
- |
52.66 |
- |
Total - $/boe(1) |
41.80 |
76.64 |
43.72 |
76.92 |
|
|
|
|
|
Operating Netbacks |
|
|
|
|
$/boe(1) |
13.72 |
9.57 |
14.48 |
4.34 |
(1) Refer to -
"Oil, Natural Gas Liquids and Natural Gas Conversions to boe" in
Advisory.
SECOND QUARTER 2013 HIGHLIGHTS
- As at June 30, 2013, the Company
continues to maintain a strong balance sheet with a positive
working capital of $7.7 million, an
unutilized credit facility of $13
million and increasing production levels.
- Post Q2, Madalena supplemented its existing working capital
with a $7.25 million equity financing
that closed in early July 2013.
International Operations in Second Quarter 2013 -
Neuquén Basin, Argentina
- In June 2013, the exploration
period for Madalena's 90% working interest Curamhuele block was
extended by way of an official decree signed by the Province of
Neuquén. This one year extension allows Madalena until November 8, 2014 to satisfy the remaining work
commitments of approximately US $13.8
million plus VAT on the block providing the Company enhanced
financial flexibility.
- The Company has also retained RBC Capital Markets as its
exclusive financial advisor in connection with the Company's three
blocks located within the Neuquén Basin of Argentina and is currently conducting a joint
venture process focused on identifying a potential joint venture
partner(s) to accelerate exploration and development activities on
the Curamhuele block.
- Shot two 3D seismic programs at Coiron Amargo Sur (south
portion of the block). The Coiron Amargo block (both north
and south regions) now have extensive 3D seismic coverage.
- 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 light oil in both the Vaca
Muerta shale and Sierras Blancas formations in 2013 and
beyond.
- On the Cortadera Block in the Province of Neuquén, the joint
venture submitted a new proposal during the first quarter of 2013
to formalize a multi-year agreement for the extension of the
initial exploration period and inclusion of subsequent exploration
periods. Throughout the second quarter, the joint venture has
continued to progress discussions related to a multi-year agreement
and has recently agreed upon a work plan for the block.
Domestic Operations in Second Quarter 2013 -
Greater Paddle River Area, Alberta, Canada
- At Paddle River, two 100% working interest Ostracod horizontal
oil wells were equipped with the solution gas tied-in to existing
Madalena facilities. These wells produced at restricted rates
during the second quarter pending completion of a pipeline twinning
project and third party compression upgrades that are currently in
the final stages of completion to accommodate increased volumes
from these wells and future horizontal development wells in the
area.
2013 OPERATIONS UPDATE AND OUTLOOK - INTERNATIONAL AND
DOMESTIC
- Operational activity on the Coiron Amargo block in the Neuquén
Basin, Argentina for the remainder
of 2013 involves the drilling of two additional gross wells
(CAS.x-14 and CAS.x-15), the drilling of one re-entry horizontal
lateral (CAN.xr-2h) into the conventional Sierras Blancas light oil
reservoir, and one or two workovers. Except for the Company's first
horizontal in the Sierras Blancas, drilling, completions and
workover activities will focus predominantly on unconventional
shale delineation in the Vaca Muerta.
- The CAS.x.14 vertical well in the southern portion of the
Coiron Amargo block has recently finished drilling and has now been
cased with approximately 105 meters of Vaca Muerta shale on
logs. Completion activities on this well are expected to
commence as part of a program of numerous Vaca Muerta zone
completions after the CAS.x-15 well is drilled in the fourth
quarter of 2013.
- On the Cortadera block the Company plans to re-enter the
CorS.X-1 well to conduct re-entry work to evaluate an uphole zone
of interest in the wellbore. Re-entry operations at CorS.X-1 are
planned to commence in the fourth quarter.
- In Canada, 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.
- The Company continues to develop its Ostracod oil project with
one additional 100% working interest Ostracod horizontal well
currently being drilled from an existing pad site that will benefit
from its close proximity to the newly built pipeline and third
party compression upgrades in the area.
- At Wildwood, the Company plans to re-commence its evaluation
operations of its Nordegg
horizontal well as soon as road and lease conditions permit.
About Madalena - Domestic and International Assets
Madalena is an independent, Canadian-based,
international and domestic upstream oil and gas company whose main
business activities include exploration, development and production
of crude oil, natural gas liquids and natural gas.
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, Lower Agrio and Los Molles 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,
Curamhuele and Cortadera blocks.
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.
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.madalenaenergy.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 Energy Inc.