MVN – Madalena Continues to Make Waves at Paddle River and Extends Argentine Exploration Activities

POSTED ON November 12, 2013 BY Travis McPherson
CATEGORY Energy, Investing, Natural Gas, Oil and Gas,

Ray Smith’s Madalena Energy (MVN:TSX) has released results from their unconventional oil wells in the Paddle River area of west-Central Alberta. Production began in early November and during a nine-date test, the horizontal Ostracod oil well flowed at an average rate of 658bpd and 871Mscfd of natural gas for a total of 803boepd. After accounting for shrinkage and liquids recovery, the average rate would equate to roughly 793boepd. The well, which was fracked in a 16 stage multi-frac program was drilled to a depth of 3,250m and horizontal 1,380m. MVN owns 58 net sections in this highly prospective Ostracod oil play where they have identified 30 drill-ready horizontal locations.

The company also provided an update on its Neuquen Basin assets in Argentina where the company holds three large land blocks; Coiron Amargo, Cortadera and Curamhuele. The Neuquen Basin is a world-class conventional and unconventional hydrocarbon basin which boasts the second largest recoverable shale gas resource and the fourth largest recoverable shale oil resource in the world. On the Coiron Amargo block (35% WI), MVN announced that the authorities of the Province of Neuquen have extended the exploration period on the block by one year which gives MVN some financial flexibility as to when it has to complete its work commitments on the block. Remaining work commitments on the block total roughly $3.8 million. Roch is the 10% operator on the block with GyP and Apco holding the remaining 10% and 45%, respectively.

Coiron Amargo block has some nice neighbours (Company)

The company recently drilled the CAN.XR-2(H) horizontal well targeting the Sierras Blancas light oil reservoir and is currently being drilled horizontal. This well is the first horizontal wells to be drilled, however the company has identified six Sierras Blancas conventional light oil pools on their block to date. The company will drill an additional Vaca Muerta shale delineation well in the southern portion of the block. The Vaca Muerta shale in a 70 to 140m thick formation which has proven oil productivity where BP has produced in excess of 760,000 barrels of oil and YPF made a new 1 billion barrel oil discovery just to the west of MVN’s Coiron Amargo block.

On the Curamhuele block, where the company owns a 90% WI, the company continues to seek a joint venture partner for the exploration and development of the block there. On this block there are Vaca Muerta shale, Lower Agrio shale and Mulichinco. At the end of October 2013, Shell announced they were drilling in the Vaca Muerta in Argentina and said “it looks good, early days, but we have 2 rigs down there.” MVN remains the only junior company with significant land holdings in the area.

MVN shares have performed well over the 2013, after a disappointing mid-to-late 2012 after the Argentine political environment soured. MVN shares are up over 40% for the year. The company is now an international and domestic oil player who will be looking for continued success in Western Canada as well as a potentially lucrative deal for all or part of their Curamhuele block with a major integrated oil company.

Here's the 3-year chart:

Read: Madalena Provides Domestic and International Operational Update

Travis McPherson

trav@ceo.ca

Travis McPherson

trav@ceo.ca

Disclaimer:

Readers are advised that the material contained herein is solely for information purposes. Readers are encouraged to conduct their own research and due diligence, and/or obtain professional advice. Nothing contained herein constitutes a representation by the publisher, nor a solicitation for the purchase or sale of securities. The information contained herein is based on sources which the publisher believes to be reliable, but is not guaranteed to be accurate, and does not purport to be a complete statement or summary of the available data. Any opinions expressed are subject to change without notice. The owner, editor, writer and publisher and their associates are not responsible for errors or omissions. They may from time to time have a position in the securities of the companies mentioned herein, and may change their positions without notice. (Any significant positions will be disclosed explicitly. This article is not intended to meet your specific individual investment needs and it is not tailored to your personal financial situation. Nothing contained herein constitutes, is intended, or deemed to be — either implied or otherwise — investment advice. Thomas Humphreys, Pacific Website Company Inc., and other entities in which he has an interest, employees, officers, family, and associates may from time to time have positions in the securities or commodities covered in these publications or web site. We reserve the right to buy and sell such securities or commodities without notice to readers. While the information herein is believed to be accurate and reliable it is not guaranteed or implied to be so. The information herein may not be complete or correct; it is provided in good faith but without any legal responsibility or obligation to provide future updates. Neither Thomas Humphreys, nor anyone else, accepts any responsibility, or assumes any liability, whatsoever, for any direct, indirect or consequential loss arising from the use of the information in these publications or web site.

Forward-Looking Statements: This article may include certain "forward-looking information" within the meaning of Canadian securities legislation. Forward-looking statements include predictions, projections and forecasts and are often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "forecast", "expect", "potential", "project", "target", "schedule", budget" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions and includes the negatives thereof. All statements other than statements of historical fact included in this release, including, without limitation, statements regarding the potential of the Company's properties are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are based on a number of material factors and assumptions. Important factors that could cause actual results to differ materially from Company's expectations include actual exploration results, changes in project parameters as plans continue to be refined, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, uninsured risks, regulatory changes, delays or inability to receive required approvals, and other exploration or other risks detailed herein and from time to time in the filings made by the Company with securities regulators. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ from those described in forward-looking statements, there may be other factors that cause such actions, events or results to differ materially from those anticipated. There can be no assurance that forward-looking statements will prove to be accurate and accordingly readers are cautioned not to place undue reliance on forward-looking statements which speak only as of the date of this article. The Company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Always do your own due diligence. We seek safe harbor.