Spudding of new well
Madalena Energy Inc. ("Madalena" or the
"Company") (TSX-V:MVN) (OTCQX:MDLNF) is pleased to announce that
their joint-venture partner Pan America Energy LLC (“PAE”)
successfully started operations on the spudding of a second
horizontal multi-frac well (CAS.x-14) in the Vaca Muerta Shale
Formation at the Coiron Amargo Sur Este (“CASE”) block in
Argentina. The CAS.x-14 exploration follows the earlier successful
intervention into well CAS.x-15. The program includes drilling
horizontally for approximately 1,500 metres in the Vaca Muerta
unconventional oil resource play at a vertical depth of
approximately 3,100 metres and performing approximately 60
hydraulic fracs with approximately 10,800 klb of
proppant.
Total gross estimated cost of this re-entry is
US$8.3 million, which includes the costs for drilling, completing
and equipping the well.
Operational Update Cas.x-15
The results of the last production test on
CAS.x-15 yielded 125 boe per day through 3mm choke with 680 psi;
Cum Oil Production of 29,200 barrels. Preliminary interpretations
of the well results indicate that the well has stabilized at
approximately 125 boe per day without artificial lift.
Appointment of new ChairmanMadalena is also
pleased to announce the appointment of Mr. Gus Halas as Chairman of
the Board of Directors. Mr. Halas has been a director of Madalena
since January 2015 and has experience serving as a director of
Triangle Petroleum Corporation, Optimize RX and School Speciality
Inc. Previously, Mr. Halas held positions as Chief Executive
Officer and President of Central Garden & Pet Company, and
President, Chief Executive Officer and Chairman of the Board of T-3
Energy Services Inc. Madalena Chief Executive Officer Mr. Jose
Penafiel is happy to welcome Mr. Halas in his new role as Chairman:
“Gus Halas provides a wealth of experience in managing businesses
in the energy sector. I am pleased to have Mr. Halas as Madalena’s
Chairman who will provide leadership to help the company achieve
its growth objective.”
Company Board compositionThe
following directors currently serve on the Company’s board with Mr.
Halas and Mr. Jose Penafiel:
Ruben
EtcheverryDirector - Mr. A. Ruben
Etcheverry was the Chief Executive Officer and Chairman of the
Board of Gas y Petróleo de Neuquén S.A. (GyP) from its foundation
in 2008 to 2013. GyP is the oil & gas provincial company
and the holder of all provincial petroleum and gas concessions. He
is currently a recognized advisor on energy matters for various
private companies and organizations. Mr. Etcheverry has more than
25 years’ experience in the energy sector.
Ralph GillcristDirector
- Mr. Gillcrist has been the Chief Executive Officer,
President and an Executive Director of Oronova Energy Inc. since
April 2017. Mr. Gillcrist also served as Executive Director of
Petroamerica Oil Corp. ("Petroamerica") from January 2015 to
January 2016. Mr. Gillcrist previously served as the Chief
Executive Officer and President of Petroamerica from January 2015
to January 2016. Prior thereto Mr. Gillcrist served as Chief
Operating Officer of Petroamerica since December 2012 and served as
its Executive Vice President of Exploration. Mr. Gillcrist has more
than 28 years of international oil and gas experience.
Barry
LarsonDirector - Chief Executive Officer
of Frontera Energy Inc. ("Frontera") since February 2017. Director
of Frontera from October 2016 to February 2017. Previously, Vice
President, Operations and Chief Operating Officer of Parex
Resources Inc. from September, 2009 to December, 2015. Prior
thereto, Vice President Operations and Chief Operating Officer of
Petro Andina Resources Inc. from February, 2005 to September,
2009.
Leonardo MadcurDirector
- Mr. Madcur is currently Director of Corporate
Development at the Werthein Group. Prior to this, from January 2011
until December 2011, he was Chief Financial Officer at Uno
Medios/Grupo America. From December 2008 until December 2010, Mr.
Madcur was Managing Director at Integra Investment. From January
2007 until November 2008, Mr. Madcur was Investment Manager at
Corporacion America. Previously, he was Secretary of Technical
Coordination in Argentina’s Ministry of Economy, Former Regulator
of Competition and Consumers, and Former Member of the Board of the
Central Bank of Argentina.
Eric MarkDirector
- Mr. Mark is currently a Managing Director at Batuta
Capital Advisors ("Batuta"), a merchant bank targeting middle
market and special situation opportunities in both the public and
private markets. Prior to joining Batuta, Mr. Mark was a Senior
Analyst/Junior Portfolio Manager at BTG Pactual, a Brazilian
investment bank, co-managing a $2 billion portfolio of distressed,
high yield and special situation equities. Mr. Mark has over 20
years of investment experience (credit and equity) in the energy,
metals & mining, general industrials and telecommunications
sectors across North America, South America and Europe.
Alejandro A.
PenafielDirector - Mr. Penafiel worked in
U.S. political campaigns prior to entering the energy sector. He
has also worked in European energy derivatives markets in sales and
business development positions at Trayport Ltd. then a subsidiary
of GFI Inc. He previously headed Hispania Petroleum S.A.
("Hispania") corporate operations in Europe and led the day to day
operations for the group's U.S. investment vehicles focusing on the
Permian basin. Mr. Penafiel holds a BA in Economics from The
American University in Washington D.C. and is a CFA Level III
candidate.
About Madalena EnergyMadalena
is an independent, Canadian upstream oil and gas company with
operations in four provinces of Argentina where it is primarily
focused on the delineation of unconventional oil and gas resources.
The Company is implementing horizontal drilling and completions
technology to develop both its conventional and resource plays.
Madalena trades on the TSX Venture Exchange
under the symbol MVN and on the OTCQX under the symbol MDLNF.
For further information please
contact:
Jose
David PenafielChief Executive Officeremail:
info@madalenaenergy.comphone: (403) 262-1901 |
|
Alejandro Augusto PenafielDirectoremail:
info@madalenaenergy.comphone: (403) 262-1901 |
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, with respect to the characteristics of the properties
held by the Company, production levels, the strategic value and
opportunities available to Madalena, operational, business
development and financial plans, and opportunities and the ability
of Madalena to execute on such plans and opportunities and the
Company's ability to meet its commitments and continue as a going
concern. 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. 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. There is specific risk that the CAS.x-15 well will not
continue to produce at initial rates disclosed in this press
release. 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.
Meaning of Boe
The term "boe" or barrels of oil equivalent may
be misleading, particularly if used in isolation. A boe conversion
ratio of six thousand cubic feet of natural gas to one barrel of
oil equivalent (6 Mcf: 1 bbl) is based on an energy equivalency
conversion method primarily applicable at the burner tip and does
not represent a value equivalency at the wellhead. Additionally,
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 ratio of 6:1 may
be misleading as an indication of value.
Well Test Results
Well test results should be considered as
preliminary and not necessarily indicative of long-term performance
or of ultimate recovery. Neither a pressure transient analysis nor
a well-test interpretation has been carried out on the well test
data contained herein and therefore the data contained herein
should be considered to be preliminary until such analysis or
interpretation has been done.
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.
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