/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR
DISSEMINATION IN THE U.S./
TSXV Trading Symbol: MVN
CALGARY, Dec. 5, 2013 /CNW/ - Madalena Energy Inc.
("Madalena" or the "Company") is pleased to announce that it has
completed its previously announced bought deal short form
prospectus offering (the "Offering") through Mackie Research
Capital Corporation and RBC Capital Markets, as co-lead
underwriters and joint book-runners (the "Co-Lead Underwriters"),
on their behalf and on behalf of Haywood Securities Inc., National
Bank Financial Inc., Dundee Securities Ltd., Beacon Securities
Limited and Cormark Securities Inc. (collectively with the Co-Lead
Underwriters, the "Underwriters"). Pursuant to the Offering,
Madalena issued an aggregate of 19,575,300 common shares of the
Company ("Common Shares") at an issue price of $0.47 per Common Share, including 2,553,300
Common Shares issued pursuant to the exercise of the over-allotment
option in full by the Underwriters, for aggregate gross proceeds of
$9.2 million.
On November 21,
2013, Madalena closed a private placement offering of CDE
"flow through shares" for gross proceeds of $3.0 million, which combined with the Offering
provides Madalena with aggregate combined gross proceeds of
$12.2 million.
The net proceeds from the Offering will be used
by the Company for further development of the Company's Ostracod
oil assets in the Paddle River area of West-Central Alberta and for
general corporate and working capital purposes.
About Madalena - International and Domestic
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.
Internationally, Madalena holds three blocks
within the Neuquén basin in Argentina comprised of approximately 135,000
net acres on the Coiron Amargo (approximately 35,000 net acres),
Curamhuele (approximately 50,500 net acres) and Cortadera
(approximately 49,500 net acres) 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 (155 net) sections of land (78% average
working interest).
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 expected use of proceeds from the Offering. 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.
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.