TSXV Trading Symbol: MVN
CALGARY, Sept. 30, 2013 /CNW/ - Madalena Energy Inc.
(TSXV: MVN) (the "Company" or "Madalena") is pleased to announce
the results of a 3 day production test of its most recent 100%
working interest horizontal Ostracod oil well located at
1-32-55-7W5M in the Paddle River area of west-central Alberta.
The well reached a total depth of 3,250 metres,
including a 1,380 metre horizontal trajectory. Completion
operations included a 16-stage multi-frac program where a total of
4,800 barrels of water-based load fluid were pumped. The well was
subsequently production tested for 3 days during which time the
well flowed continuously and recovered a total of 3,120 barrels of
load fluid (representing 64% of the pumped volume). During the 3
day test, the well flowed at an average rate of 877 bbls/d of 30°
API oil and 1.007 mmscf/d of natural gas for a total of 1,045
Boe/d (84% Oil). The test rate over the last 24 hours was
approximately 788 bbls/d of oil and 1.092 mmscf/d of natural gas
(on a 3/4" choke at a flowing wellhead pressure averaging 200
psi). After accounting for shrinkage and NGLs recovery at the
local production facility, the test rate over the final 24 hours
would equate to approximately 957 boe/d (87% oil & NGLs).
This horizontal well is currently shut-in and
operations to equip the well for production and tie-in the solution
gas to existing Madalena facilities are underway. The Company
anticipates that this horizontal well will be brought on-stream in
October.
Madalena has a large land base of over 150 net
sections in the Greater Paddle River area of which the company
controls approximately 60 net sections of land across the
Ostracod oil trend and has a significant inventory of
drill-ready horizontal locations for Ostracod development.
While Madalena is very encouraged by the initial
results from this horizontal well, the flowback information
disclosed above should be considered preliminary and is not
indicative of the well's long-term performance. Ongoing technical
work and operational enhancements continue to improve the Company's
understanding of the ultimate potential of its Ostracod oil play
with further optimizations being made via the drilling and
completions execution.
About Madalena - International and Domestic 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 multiple light oil and liquids-rich 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.
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.