TSXV Trading Symbol: MVN
Over the next 17 months, Madalena plans to invest the Company’s cash flow and financial resources on its conventional opportunities and to execute a delineation strategy on the Company’s unconventional shale and tight sand resources within the Neuqun basin.
Madalena is focused on creating shareholder value through a balanced business strategy focused primarily on a combination of lower risk development activities and unconventional shale and tight sand delineation strategy. Key focus areas and priorities are as follows:
Horizontal drilling operations in the Sierras Blancas and Ostracod oil developments will proceed through the remainder of 2014 with the drilling of four to five wells. A multi-well drilling program in the Loma Montosa oil resource play is being planned for 2015 at the Puesto Morales field.
Additionally, Madalena is planning to execute a multi-well workover program in 2014 and 2015 to optimize production across its producing fields in Argentina. Specifically, the Company plans to conduct four workovers in its Puesto Morales field before the end of 2014.
Industry activity near Madalena’s unconventional blocks within the Neuqun basin continues to increase and Madalena is well positioned with exposure to the evolving shale and tight sand plays at Corion Amargo, Curamhuele and Cortadera. As part of a balanced business strategy to unlock value, Madalena is planning to conduct vertical and/or horizontal activities in the Vaca Muerta shale, Lower Agrio shale and Mulichinco tight sand plays.
For the remainder of 2014, on the Coiron Amargo block, Madalena plans to continue its delineation activities in the Vaca Muerta shale with a fracture treatment at the CAS.x-15 vertical well (previously drilled) and a new vertical well to be drilled and multi-stage fracced at the CAS.x-16 location. Rigs have been secured for these activities. Also in 2014, on the Cortadera block, Madalena expects to conduct a re-entry targeting the Mulichinco tight sand in the previously drilled CorS.x-1 deep vertical test.
The Company also plans to move forward at Curamhuele on its unconventional resources in the Lower Agrio shale and Mulichinco tight sands by re-entering two existing wells (Yp.x-1001 and Ch.x-1) to conduct drilling, multi-stage frac and testing operations in these zones of interest. Timing of this work is currently planned for late 2014 or Q1-2015. Madalena is currently working to source a drilling rig and other services for this program. In response to offsetting industry activity, Madalena is also further evaluating the Vaca Muerta shale across the Curamhuele block.
Madalena’s realigned Canadian and Argentine staff is now able to put additional focus on select business development initiatives related to potential block farm-outs. Madalena’s strategy is to focus the Company’s cash flow and financial resources on its development assets and the delineation of its unconventional resources (as described above). The Company will concurrently pursue a farm-out strategy to create value on select exploration and appraisal blocks.
Madalena is an independent, Canadian-based, international and domestic upstream oil and gas company whose main business activities include exploration, development and production of crude oil, natural gas liquids and natural gas.
SOURCE Madalena Energy Inc.