Welcome!

News Feed Item

Madalena Ramps Up Domestic Drilling Operations with Two Rigs Focused on Three Horizontal Resource Plays & Production Growth; Internationally, Drilling Moves Ahead to Delineate the Vaca Muerta Shale as One of Three Shale Plays Across its Blocks

CALGARY, Alberta, December 6, 2012 /PRNewswire/ --

TSXV Trading Symbol: MVN

Madalena Ventures Inc. ("Madalena") (TSX-V: MVN), an international and Canadian ("domestic") focused upstream oil and gas company is pleased to provide the following operational update.

Canadian Operations Update - Greater Paddle River Core Area:

Madalena has moved two drilling rigs into its core area of operations located in the Greater Paddle River Area of Central Alberta, where the company holds a significant acreage position of 197 gross (153 net) sections of land (78% average working interest and largely operated by Madalena) across multiple light oil and liquids-rich gas resource plays.  Madalena's focus domestically is to exploit its large inventory of horizontal development locations with the expectation to increase production and cash flow year over year.

The plan between now and spring break-up is to drill, multi-stage frac, equip and place on production four to five gross (4.0 to 4.2 net) horizontals focused across three key resource plays.  To increase production and reserves, the focus throughout 2013 will be to drill horizontals targeting: 1.) Ostracod oil, 2.) Notikewin / Falher / Wilrich liquids-rich gas stacked development plays, and 3.) Nordegg oil & liquids-rich gas

Horizontal Resource Play #1 focuses on Ostracod light oil and is highlighted by a 54 net section position on the play and over 50 already identified, drill ready, horizontal locations.  Madalena's most recent Ostracod horizontal (Paddle River 01-05) which was put on-stream in mid-October 2012 is currently exceeding the company's expectations with this horizontal continuing to flow without the assistance of pumping equipment.  In July 2012 the well tested at an average rate of 438 boe/d (73% oil & liquids) over a three-day period following a fourteen stage frac completion.  The IP 30 day average rate on this horizontal was 307 boe/d (65% oil & liquids).

Horizontal Resource Play #2 focuses on the low-risk development of Madalana's regionally stacked Mannville channel trend highlighted by 133 net sections with liquids-rich Notikewin / Falher / Wilrich stacked development plays, vertical well production or control throughout, already in place underutilized pipeline & infrastructure in the area, with liquid contents in the range of 28 to 35 bbls/mmcf, and significant running room for horizontal development.

Horizontal Resource Play #3 which is expected to be drilled, multi-stage frac'd and tested in the near-term involves an emerging oil & liquids-rich Nordegg play.  Madalena has 144 net sections of Nordegg rights, containing or proximal to vertical well production which produces oil, and/or high liquids-rich content gas of over 100 bbls/mmcf.  Madalena plans to utilize North American horizontal technology to test this emerging resource play which is widespread across its sizeable land position.

International Operations Update - Neuquén Basin

Madalena, which holds three large blocks (or concessions) within the prolific Neuquén basin in Argentina, continues to move forward to delineate its large in-place oil & gas unconventional resources with shale positions in the Vaca Muerta, Agrio and Los Molles shales.  Madalena holds 135,000 net acres across the Coiron Amargo (35,027 net acres), Curamhuele (50,400 net acres) and Cortadera (49,600 net acres) blocks.

On the Coiron Amargo Block (35% working interest), the CAN 8 development well located 800 meters south east of the CAN 7 well is drilling ahead at approximately 7,824 feet to a planned target depth of approximately 10,430 feet. The objectives for the CAN 8 well are both the conventional light oil in the Sierras Blancas formation as well as to further delineate and assess the Vaca Muerta shale on the block. Offset to CAN 8, production from the CAN-7 Sierras Blancas alone has now reached over 60,000 bbls since coming on stream in July this year and continues to flow at over 300 bopd gross with associated gas.

At the end of November, Argentina announced plans to increase gas prices to $7.50/mmbtu for new gas developments. With import prices significantly above this, gas related drilling activity in the country will contribute to reduced gas imports while receiving a substantially higher price than obtained previously.  All three of Madalena's Blocks have the potential to benefit in the future from this recent announcement via the contribution of new gas production from both conventional zones of interest and the large-in-place unconventional shale resources.

Corporate Update - Newly Focused Team, Production Update and Balance Sheet Strength

With a full cycle corporate, technical and operational team now in place, Madalena is well positioned with expertise to operate assets both domestically & internationally and is focused on delivering results in 2013 onward. Madalena's current corporate production is approximately 950 boe/d net (60 % oil and liquids) including an estimated 650 boe/d net (51% oil and liquids) from its domestic assets and 300 boe/d net (81 % oil and liquids) from its international assets.  Madalena continues to have a strong balance sheet for go-forward growth, with approximately $36 million in positive working capital, zero debt and an undrawn initial $4.75 million bank facility with a major Canadian bank.

Reader Advisories

The information in this news release contains certain forward-looking statements. These statements relate to future events or our future performance. 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 http://www.sedar.com.

Any references in this news release to test rates, flow rates, initial and/or final raw test or production rates, early production 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.

 

For further information:

Kevin Shaw, P.Eng, MBA 
President and Chief Executive Officer, 
Director 
Madalena Ventures Inc. 
Phone: +1(403)835-3158


Anthony J. Potter
VP, Finance and Chief Financial Officer,
Director
Madalena Ventures Inc.
Phone: +1(403)262-1901 ext 232

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
With more than 30 Kubernetes solutions in the marketplace, it's tempting to think Kubernetes and the vendor ecosystem has solved the problem of operationalizing containers at scale or of automatically managing the elasticity of the underlying infrastructure that these solutions need to be truly scalable. Far from it. There are at least six major pain points that companies experience when they try to deploy and run Kubernetes in their complex environments. In this presentation, the speaker will d...
While DevOps most critically and famously fosters collaboration, communication, and integration through cultural change, culture is more of an output than an input. In order to actively drive cultural evolution, organizations must make substantial organizational and process changes, and adopt new technologies, to encourage a DevOps culture. Moderated by Andi Mann, panelists discussed how to balance these three pillars of DevOps, where to focus attention (and resources), where organizations might...
The deluge of IoT sensor data collected from connected devices and the powerful AI required to make that data actionable are giving rise to a hybrid ecosystem in which cloud, on-prem and edge processes become interweaved. Attendees will learn how emerging composable infrastructure solutions deliver the adaptive architecture needed to manage this new data reality. Machine learning algorithms can better anticipate data storms and automate resources to support surges, including fully scalable GPU-c...
When building large, cloud-based applications that operate at a high scale, it's important to maintain a high availability and resilience to failures. In order to do that, you must be tolerant of failures, even in light of failures in other areas of your application. "Fly two mistakes high" is an old adage in the radio control airplane hobby. It means, fly high enough so that if you make a mistake, you can continue flying with room to still make mistakes. In his session at 18th Cloud Expo, Le...
Machine learning has taken residence at our cities' cores and now we can finally have "smart cities." Cities are a collection of buildings made to provide the structure and safety necessary for people to function, create and survive. Buildings are a pool of ever-changing performance data from large automated systems such as heating and cooling to the people that live and work within them. Through machine learning, buildings can optimize performance, reduce costs, and improve occupant comfort by ...
As Cybric's Chief Technology Officer, Mike D. Kail is responsible for the strategic vision and technical direction of the platform. Prior to founding Cybric, Mike was Yahoo's CIO and SVP of Infrastructure, where he led the IT and Data Center functions for the company. He has more than 24 years of IT Operations experience with a focus on highly-scalable architectures.
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
CI/CD is conceptually straightforward, yet often technically intricate to implement since it requires time and opportunities to develop intimate understanding on not only DevOps processes and operations, but likely product integrations with multiple platforms. This session intends to bridge the gap by offering an intense learning experience while witnessing the processes and operations to build from zero to a simple, yet functional CI/CD pipeline integrated with Jenkins, Github, Docker and Azure...
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
Dhiraj Sehgal works in Delphix's product and solution organization. His focus has been DevOps, DataOps, private cloud and datacenters customers, technologies and products. He has wealth of experience in cloud focused and virtualized technologies ranging from compute, networking to storage. He has spoken at Cloud Expo for last 3 years now in New York and Santa Clara.
Enterprises are striving to become digital businesses for differentiated innovation and customer-centricity. Traditionally, they focused on digitizing processes and paper workflow. To be a disruptor and compete against new players, they need to gain insight into business data and innovate at scale. Cloud and cognitive technologies can help them leverage hidden data in SAP/ERP systems to fuel their businesses to accelerate digital transformation success.
Containers and Kubernetes allow for code portability across on-premise VMs, bare metal, or multiple cloud provider environments. Yet, despite this portability promise, developers may include configuration and application definitions that constrain or even eliminate application portability. In this session we'll describe best practices for "configuration as code" in a Kubernetes environment. We will demonstrate how a properly constructed containerized app can be deployed to both Amazon and Azure ...
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
Predicting the future has never been more challenging - not because of the lack of data but because of the flood of ungoverned and risk laden information. Microsoft states that 2.5 exabytes of data are created every day. Expectations and reliance on data are being pushed to the limits, as demands around hybrid options continue to grow.