Energia
Madalena Announces Fourth Quarter and Year End 2014 Financial Results and Provides an Operational Outlook
Madalena Energy Inc. (TSXV: MVN) (the "Company" or "Madalena") is pleased to provide selected financial and operational information for the three months and year ended December 31, 2014 .
Copies of the Company's consolidated financial statements for the year ended December 31, 2014 , the related management's discussion and analysis and the Annual Information Form (the "AIF") of the Company for the year ended December 31, 2014 have been filed with Canadian securities regulatory authorities and will be made available under the Company's profile at http://www.sedar.com and on the Company's website at http://www.madalenaenergy.com.
Highlights for 2014 included:
Madalena is committed to rationalizing select non-core properties across its portfolio of assets, and in parallel with executing the Company's 2015 drilling program, continues to actively seek joint venture opportunities, which would permit it to accelerate the exploration and development of its properties.
Madalena announces with regret that Mr. Doug Brooks has tendered his resignation from the Board of Directors. Mr. Brooks has recently accepted the position of president and chief executive officer with a private, U.S.-based oil and gas company. Mr. Brooks' employment terms preclude him from serving on public company boards. Mr. Brooks remains a strong supporter of Madalena. The Company would like to thank him for his valuable contributions and wish him well in his future endeavours. Steven Sharpe , the Company's Chairman commented: "In the time that he was on our Board, Doug made a meaningful contribution and was always available to share his experience and insight. I will miss his wise counsel."
Madalena's current production is approximately 4,000 boe/d (79% oil and NGL's) with 3,800 boe/d (80 % oil and NGL's) in Argentina and 200 boe/d (55% oil & NGL's) in Canada .
Over the last several months, Madalena has commenced international operational planning related to the drilling of four strategic resource plays in Argentina and continued horizontal development of its light oil assets. The four strategic resource plays include the Loma Montosa oil resource play, Vaca Muerta shale, Lower Agrio shale, and liquids-rich Mulichinco gas resource play.
The Company has a new 45% WI partner (PlusPetrol) on the Coiron Amargo Block. Madalena has been involved in numerous technical meetings sharing information with the new partner and discussing future plans related to Vaca Muerta shale and Sierras Blancas development activities. The Company and its partners plan to drill additional horizontal wells into the Seirras Blancas light oil formation later in 2015 and in 2016. To date the Company has drilled, completed and placed on production four successful horizontals in the Sierras Blancas and has an inventory of horizontal development wells identified on four main pools on the northern portion of the block. Madalena and its partners are also planning to execute the first horizontal multi stage frac on the block in the Vaca Muerta shale (oil) and expect this to commence late in 2015.
Madalena has recently executed a strategic data exchange with a major E&P operator of a block offsetting Curamhuele. The Company is using this information to plan its re-entry and testing program of the Lower Agrio shale oil resource play. In particular Madalena is completing detailed technical analysis on the hydraulic fracture treatments completed on the Lower Agrio and the corresponding production test results. The goal is to improve the treatment design, cost and results. The Lower Agrio is approximately 225 meters thick at Curamhuele. Concurrently with the Lower Agrio re-entry operation, the Company intends to deepen and complete the Mulichinco in another well at Curamhuele. The Mulichinco is a liquids rich gas resource play (approximately 200 meters thick) comprising the fourth strategic resource the Company intends to evaluate in 2015.
The Company is well positioned to achieve it stated goals and objectives to advance four scalable resource plays in Argentina in 2015. With early success on the Loma Montosa and activity commencing on the Lower Agrio and Mulchinco over the next two quarters, 2015 will be the Company's most active year in Argentina .
Madalena currently funds its capital program through existing working capital and funds flow. As discussed above, to date the Company has not established a credit facility in respect of its
Argentina assets. To further enhance the Company's financial flexibility, Madalena is currently investigating establishing a credit facility secured by its
Argentina assets.
Madalena is an independent, Canadian-based Argentina focused, upstream oil and gas company.
Madalena holds over 950,000 net acres in five provinces of Argentina where it is focused on the delineation of large shale and unconventional resources in the Vaca Muerta shale, Lower Agrio shale, Loma Montosa oil play and the Mulichinco liquids-rich gas play. 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 OTC under the symbol MDLNF.
http://www.sedar.com.
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please contact: Kevin Shaw , P.Eng, MBA, President and Chief Executive Officer, Madalena Energy Inc., Phone: +1(403)-262-1901 (Ext. 230), kdshaw@madalenaenergy.com; Thomas Love, CA, VP,
Finance and Chief Financial Officer, Madalena Energy Inc., Phone: +1(403)262-1901 (Ext. 227), tlove@madalenaenergy.com