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TSXV Trading Symbol: MVN
OTC Trading Symbol: MDLNF
CALGARY,
July 7, 2014 /CNW/ - Madalena Energy
Inc. ("Madalena" or the "Company") (TSXV: MVN and
OTC: MDLNF) is pleased to announce that it has closed the
over-allotment option (the "Over-Allotment Option") in full
for its previously announced bought deal, short form prospectus
offering (the "Offering"). Pursuant to the
Over-Allotment Option, Madalena issued 14,715,000 common shares of
the Company ("Common Shares") at a price of $0.51 per Common Share for gross proceeds of
$7,504,650. The total gross
proceeds under the Offering were $57,535,650.
The syndicate of underwriters for the Offering
was led by Dundee Securities Ltd.
and included RBC Capital Markets, Haywood Securities Inc., Beacon
Securities Limited, National Bank Financial Inc., FirstEnergy
Capital Corp., Mackie Research Capital Corporation, TD Securities
Inc., Canaccord Genuity Corp., Jennings Capital Inc. and Raymond
James Ltd.
As previously announced, the Company used the
net proceeds from the Offering to fund the remaining cash component
for the acquisition of the Argentinean business unit of Gran Tierra
Energy Inc. and for general corporate and working capital
purposes.
About Madalena - International and Domestic
Assets (Pre-Acquisition)
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 Neuquén basin in Argentina where it is focused on the
delineation of large petroleum in-place shale and unconventional
resources in the Vaca Muerta and Lower Agrio shales, in addition to
multiple tight sand plays. The Company is also implementing
horizontal drilling and completions technology to high impact
international plays and is currently focused on a conventional oil
play in the Sierras Blancas formation. Madalena holds approximately
132,200 net acres on the Coiron Amargo (34,950 net acres),
Curamhuele (50,600 net acres) and Cortadera (46,650 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 195 gross (153 net) sections of land (approximately
78% average W.I.) encompassing light oil and liquids-rich gas
resource plays. Madalena's primary domestic focus is to exploit its
large inventory of horizontal drilling locations on its Ostracod
oil and emerging oil & liquids-rich gas resource plays.
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, but not
limited to the Company's use of proceeds from the Offering.
Statements relating to "reserves" are also deemed to be forward
looking statements, as they involve the implied assessment, based
on certain estimates and assumptions, that the reserves described
exist in the quantities predicted or estimated and that the
reserves can be profitably produced in the future. 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.
THE SECURITIES OFFERED HAVE NOT BEEN REGISTERED
UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE
OFFERED OR SOLD IN THE UNITED
STATES ABSENT REGISTRATION OR AN EXEMPTION FROM THE
REGISTRATION REQUIREMENTS. THIS PRESS RELEASE SHALL NOT CONSTITUTE
AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY NOR SHALL
THERE BE ANY SALE OF THE SECURITIES IN ANY STATE IN WHICH SUCH
OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL.
SOURCE Madalena Energy Inc.