(All dollar figures are expressed in
United States Dollars)
CALGARY, March 17, 2017 /CNW/ - Madalena Energy Inc.
("Madalena" or the "Company") (TSXV: MVN and OTCQX: MDLNF) is
pleased to announce the commencement of the first horizontal
multi-frac re-entry ("the Re-entry Program") in the Vaca Muerta
shale formation at Coiron Amargo Sur Este ("CASE").
Madalena's partner, Pan American Energy LLC, Sucursal Argentina
("PAE") is the operator at CASE with a 55% working interest.
Madalena and Gas y Petroleo del Neuquén, the provincial oil and gas
company in the Province of Neuquén, hold 35% and 10% working
interests, respectively.
PAE recently mobilized a drilling rig to the CAS.x-15(ST)
location to re-enter the well and Madalena was advised that the
Re-entry Program commenced today. The rig will drill horizontally
for approximately 1,500 metres and will target the Vaca Muerta
unconventional oil resource play at a vertical depth of
approximately 3,200 metres. Subsequent to drilling, the drilling
rig will be de-mobilized and preparations will commence to mobilize
supplies, services and equipment to complete the well with
approximately 19 stages of hydraulic fracs.
The total gross estimated cost of this Re-entry Program is
$9.8 million, which includes the
costs for drilling, completing and equipping the well.
Pursuant to the transactions previously described in the
Company's January 11, 2017 and
December 7, 2016 news releases, the
2017 work program at CASE is comprised of two well re-entries.
Madalena will receive $5.6 million in
carried capital costs through this work program.
About Madalena Energy
Madalena is an independent,
Canadian headquartered, Argentina
focused upstream oil and gas company with operations in four
provinces of Argentina where it is
focused on the delineation of unconventional resources in the Vaca
Muerta shale, Lower Agrio shale and Loma
Montosa oil plays. 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.
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 matters related to planned
operations at CASE. 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. 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.