Madalena Announces Q3 - 2017 Results and Operational Update
November 14 2017 - 8:42PM
Madalena Energy Inc. ("Madalena" or the "Company") (TSXV:MVN)
(OTCQX:MDLNF) announces its operating and financial results for the
three and nine months ended September 30, 2017. Selected
information is outlined below and should be read in conjunction
with Madalena's unaudited condensed interim consolidated financial
statements for the three and nine months ended September 30, 2017
and the associated management's discussion and analysis
(“MD&A”), which are available for review under the Company's
profile at www.sedar.com and on the Company's website at
www.madalenaenergy.com.
SUMMARY FINANCIAL AND OPERATIONAL
RESULTS
|
Three months endedSept
30 |
Nine months endedSeptember
30 |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
Financial – ($000s, except per share amounts) |
|
|
|
|
Oil and
gas revenue |
9,893 |
|
11,728 |
|
29,587 |
|
39,609 |
|
Funds
flow from (used in) continuing operations(1) |
41 |
|
840 |
|
(3,742 |
) |
5,821 |
|
Per share
- basic & diluted(1) |
(0.01 |
) |
(0.02 |
) |
(0.02 |
) |
(0.04 |
) |
Net loss
from continuing operations |
(5,702 |
) |
(12,715 |
) |
(14,423 |
) |
(22,697 |
) |
Per share
- basic & diluted(1) |
(0.01 |
) |
(0.02 |
) |
(0.02 |
) |
(0.05 |
) |
Capital
expenditures |
309 |
|
622 |
|
1,146 |
|
6,008 |
|
Working
capital (deficiency) |
368 |
|
(3,839 |
) |
368 |
|
(3,839 |
) |
Common
shares outstanding - 000s |
543,780 |
|
543,780 |
|
543,780 |
|
543,780 |
|
Operating |
|
|
|
|
Average
Daily Sales |
|
|
|
|
Crude oil
and Ngls – Bbls/d |
1,930 |
|
1,853 |
|
1,849 |
|
2,114 |
|
Natural
gas – Mcf/d |
1,824 |
|
2,368 |
|
1,959 |
|
2,659 |
|
Total - Boe /d |
2,234 |
|
2,247 |
|
2,176 |
|
2,557 |
|
Average
Sales Prices |
|
|
|
|
Crude oil
and Ngls - $/Bbl |
49.85 |
|
61.65 |
|
52.55 |
|
62.10 |
|
Natural
gas - $/Mcf |
6.20 |
|
5.60 |
|
5.71 |
|
4.99 |
|
Total -
$/Boe |
48.14 |
|
56.72 |
|
49.81 |
|
56.53 |
|
Operating Netbacks(2) - $/Boe |
8.62 |
|
17.23 |
|
10.87 |
|
23.24 |
|
|
|
|
|
|
|
|
|
|
- This table contains the term "funds flow from continuing
operations", which is a non-GAAP measure and should not be
considered an alternative to, or more meaningful than "cash flows
from operating activities " as determined in accordance with
International Financial Reporting Standards ("IFRS") as an
indicator of the Company's performance. Funds flow from operations
and funds flow from operations per share (basic and diluted) do not
have any standardized meanings prescribed by IFRS and may not be
comparable with the calculation of similar measures for other
entities. Management uses funds flow from continuing operations to
analyze operating performance and considers funds flow from
continuing operations to be a key measure as it demonstrates the
Company's ability to generate the cash necessary to fund future
capital investment. The reconciliation between funds flow from
continuing operations and cash flows from operating activities can
be found in the MD&A. Funds flow from continuing operations per
share is calculated using the basic and diluted weighted average
number of shares for the period, consistent with the calculations
of earnings (loss) per share.
- Operating netback is a non-GAAP measure calculated as the
average per boe of the Company's oil and gas sales, less royalties
and operating costs.
2017 Operational Highlights
- Despite lower realized price due to the transition to Brent
pricing in Argentina the company had positive cash flow
from continuing operations. This included several
recurring items related to the restructuring process which began in
May 8, 2017 and is not expected to be present in Q1
2018.
- Pursuant to the Pan American Energy LLC, Sucursal Argentina
(“PAE”) transaction in Q1 2017, the 2017 work program at Coirón
Amargo – Sur Este (“CASE”), pursuant to which the Company has a
maximum of $5.6 million carry and has been carried for $3.6 million
in capital costs in the CAS.x-15 well. The CAS.x-15 well was
successfully re-entered and drilled horizontally for approximately
1,000 metres in the Vaca Muerta unconventional oil resource play at
a vertical depth of approximately 3,200 metres; The well tested an
average of 430 barrels of oil per day through 3mm choke during the
first 3 weeks of production. 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
- Argentine oil prices are forecast to converge to international
Brent pricing over the coming months;
- On September 13, 2017, Messrs. Ruben Etcheverry, Ralph
Gillcrist and Leonardo Madcur have each joined the board of
directors of the Company (the "Board") as independent
directors. The aforementioned directors have replaced Messrs.
Keith MacDonald, Jay Reid and Ving Woo who each elected not to
stand for reelection to the Board.
About Madalena
Energy
Madalena is an independent, Canadian
head-quartered Argentina 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.
For further information please
contact:
Jose David Penafiel
Chief Executive Officer
E-mail:jpenafiel@madalenaenergy.com Phone: (403)
262-1901
Ezequiel Martinez ArietChief Financial
OfficerE-mail: ezequielariet@madalenaenergy.comPhone: (403)
262-1901
Reader Advisories
Forward Looking InformationThe
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. 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 BoeThe 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 ResultsWell 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.
Madalena Energy (TSXV:MVN)
Historical Stock Chart
From Apr 2024 to May 2024
Madalena Energy (TSXV:MVN)
Historical Stock Chart
From May 2023 to May 2024