CALGARY, Jan. 17, 2013 /PRNewswire/ - Madalena Ventures Inc. (the "Company" or "Madalena" (TSX VENTURE: MVN) is pleased to provide an update of its operations in both Western Canada and Internationally.
Western Canada Operations Update - Greater Paddle River Core Area
Horizontal Resource Play #1 - Ostracod light oil
On October 15, 2012 the Company placed its most recent Ostracod horizontal oil well (Madalena 100% W.I.) on production in the Paddle River area. The IP30 rate was 307 boe/d (65% oil & ngl). The well continues to flow without the assistance of pumping equipment at rates of approximately 270 boe/d after 3 months. Madalena plans to spud a 100% working interest offsetting horizontal well within the next 2 weeks and may subsequently drill an additional 100% working interest horizontal location prior to spring break-up.
Horizontal Resource Play #2 - Stacked Mannville Channel Trend
In December 2012, the Company drilled a 3038 meter horizontal Notikewin well (Madalena 100% W.I.) in the Niton area. The well has a horizontal trajectory of approximately 1100 meters which was multi-stage fraced in 13 stages. The well was flowed to clean-up and initially tested over a 9 day period. During this time, gas rates increased steadily to 5.5 mmcf/d with an expected 28 bbls/mmcf of liquids once tied-in and on production. Throughout the clean-up test, 100% of the 689 m3 of load fluid was recovered. Average production rates over the final 24 hours of the test were 5.5 mmcf/d and flowing pressures remained relatively stable at approximately 3000 kPa. The plan is for this horizontal to be tied-in and on production around mid-February. The flow-back information disclosed above should be considered preliminary and is not necessarily indicative of the long-term performance of the well.
Horizontal Resource Play #3 - Nordegg oil & liquids-rich gas
In December 2012 Madalena also spudded a horizontal Nordegg well (Madalena 100% W.I.) in the Wildwood area. The well has been drilled to a total depth of approximately 3000 meters with approximately 1100 meters of horizontal trajectory. The Company is currently planning a multi-stage frac operation to be undertaken later in January. With success, it is expected that the well will be tied-in and equipped such that gas and liquids (estimated at over 100 bbls/mmcf) production would commence in early March.
With the focus on production growth from its three key resource plays in the Greater Paddle River Area, Madalena continues to move forward on its plan to drill, multi-stage frac and tie-in four to five horizontal wells prior to spring break-up.
International Operations Update - Neuquen Basin
In Argentina, exploration and delineation activity continues along with progress on plans for continuation of the blocks beyond the end of their initial exploration periods in the fourth quarter of 2013. Currently, Madalena and its partners are drilling the CAS X-5 exploration well in the southern portion of the Coiron Amargo block (Madalena 35% W.I.) to continue to delineate the Vaca Muerta shale on the block. This vertical well is expected to reach total depth over the next week. At the CAN 8 location (previously drilled in December 2012 on the northern portion of the Coiron Amargo block), a cement bond log was run in the cased wellbore and a remedial cement job is required across the Sierras Blancas light oil zone prior to completion execution. The plan is to move onto the CAN-8 location before the end of January to conduct this remedial work, and upon success, move forward with a completion in the Sierras Blancas. The CAN-8 well has hydrocarbon on logs in both the Sierras Blancas and Vaca Muerta shale.
About Madalena - Domestic and International Assets
Madalena is an independent, Canadian-based, domestic and international upstream oil and gas company whose main business activities include exploration, development and production of crude oil, natural gas liquids and natural gas.
Domestically, Madalena holds a significant acreage position in Western Canada, with a core area of operations located in the Greater Paddle River Area, where the company holds 197 gross (153 net) sections of land (78% average W.I.) across multiple light oil and liquids-rich gas resource plays. Madalena's focus domestically is to exploit its large inventory of horizontal development locations in its Ostracod oil, Notikewin/Wilrich liquids-rich gas, and Nordegg oil & liquids-rich resource plays. Madalena also holds 102 net sections (100% W.I.) which are prospective for the Duvernay shale.
Internationally, Madalena holds three large blocks within the prolific Neuquén basin in Argentina and is focused on the delineation / prove-up of its large in-place shale & unconventional resources in the Vaca Muerta and Agrio shales, alongside high impact plays in the Quintuco and Mulichinco formations. 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.
Madalena trades on the TSX Venture Exchange under the symbol MVN. Basic corporate information, recent news releases and periodically updated corporate presentations are available on the Company's website at www.madalena-ventures.com .
SOURCE Madalena Ventures Inc.
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