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Madalena Announces Financial and Operating Results for the three and nine months ended September 30, 2012

Madalena Announces Financial and Operating Results for the three and nine 
months ended September 30, 2012 
/NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR DISSEMINATION IN 
THE UNITED STATES/ 
TSXV Trading Symbol: MVN 
CALGARY, Nov. 26, 2012 /CNW/ - Madalena Ventures Inc. ("Madalena" or the 
"Company") (TSX Venture: MVN) today announced that it has filed its unaudited 
financial statements and related management's discussion and analysis ("MD&A") 
for the three and nine month period ended September 30, 2012 on www.sedar.com 
and on its website www.madalena-ventures.com. All amounts are in Canadian 
dollars ($) unless otherwise stated. 
HIGHLIGHTS 
Highlights in the nine months ended September 30, 2012 include: 


    --  Strategic acquisition (closed November 1, 2012) of Canadian oil
        and gas assets securing access to a large inventory of
        horizontal drilling locations and diversifying country risk;
    --  Extension of the Company's large acreage position in the
        Neuquen Basin and conversion of the northern 108 km(2) of the
        404 km(2) Coiron Amargo Block to a 25 year exploitation
        concession;
    --  Successful drilling and completion of 2 development wells and 2
        exploration wells on the Coiron Amargo Block;
    --  With its partner Apache, drilled a Vaca Muerta shale test at
        the CorS X-1 deep gas exploration well on the Cortadera Block
        penetrating the Vaca Muerta formation and additional zones of
        interest in the Quintuco, Mulichinco, and Agrio formations; and
    --  Generated in Argentina in Q3 positive funds from operations(
        (2)) on higher production volumes and maintained strong working
        capital position exiting the period with working capital of
        $58.7 million.

OVERVIEW

Madalena is an independent, Canadian-based, international upstream oil and gas 
company whose main business activities include exploration, development and 
production of crude oil, natural gas liquids and natural gas.

Corporate

On November 1, 2012 the Company acquired all of the common shares of Online 
Energy Inc. ("Online") for a total purchase price of approximately $20.6 
million which includes the assumption of Online's debt in the amount of 
approximately $4.5 million excluding transaction and severance costs.

Online's assets include 153 net sections of land (197 gross sections at 77.9% 
average working interest) in the greater Paddle River area of central Alberta 
across multiple light oil and liquids-rich gas resource plays.

The acquisition of Online is expected to have the following benefits for 
Madalena:
    --  Provides entry into the domestic E&P space with the opportunity
        to ramp production and cash flow while continuing to develop
        and grow its international assets & business plan
    --  High working interest ownership and operatorship of a sizeable
        domestic land base with a large inventory of potential oil and
        liquids-rich natural gas locations
    --  Increases critical mass for continuing operations and the
        opportunity to transfer North America technology and
        engineering techniques to other international resource plays
    --  Increases total proved reserves of Madalena by 124% from 874
        MBOE to 1,955 MBOE((1))
    --  Increases total proved plus probable reserves of Madalena by
        92% from 1,565 MBOE to 3,001 MBOE((1))

Online's average daily production in the third quarter of 2012 was 389 boepd 
(40% oil and liquids), with Online's current production approximately 650 
boepd (51% oil & liquids) with the recent start-up of the Ostracod 1-5 
horizontal well. Average Q3 production from the Company's combined Argentina 
and Canadian assets would have been 700 boepd (59% oil & liquids).

Argentina - Coiron Amargo Block (35% working interest)

On Coiron Amargo Sur, in February 2012 the Company drilled and cased the CAS 
X-4 well approximately nine kilometers south east of the CAS X-1 discovery 
well drilled in 2011 and in March 2012 drilled and cased to TD the CAS X-2 
vertical exploration well in the center of the block. At CAS X-4 a full 
diameter corewas taken through most of the Vaca Muerta shale formation 
interval which will be used to optimize future wells in the Vaca Muerta 
formation.

In March 2012 an application by the Coiron Amargo joint venture to convert the 
northern 108 km(2) of the 404 km(2) block to a 25 year exploitation concession 
(Coiron Amargo Norte) was approved by the Province of Neuquén. In addition, 
the exploration period for the remainder of the block (Coiron Amargo Sur) was 
extended to November 8, 2013. Madalena's remaining share of future 
development commitments associated with Coiron Amargo Norte to December 31, 
2013 is approximately $5.5 million plus VAT.

On Coiron Amargo Norte, in May 2012 the Company completed drilling the CAN 5 
development well located within the CAN X-1 Sierras Blancas structure and in 
June 2012 the Company completed drilling the CAN 7 development well located 
within the CAN X-3 Sierras Blancas structure. With the addition of these 
wells, the Company's share of production in the third quarter of 2012 from 
Coiron Amargo Norte and Sur was 331 boepd (268 bopd).

In November 2012, the Company commenced drilling the CAN 8 development well 
located approximately 800 metres south east of the CAN 7 well. The vertical 
well is scheduled to be drilled to approximately 10,430 feet depth with the 
primary objective horizon in the Sierras Blancas formation and the Vaca Muerta 
horizon above.

The extension of Coiron Amargo Sur to November 8, 2013 required additional 
work commitments of US$ 33.5 million (Madalena share - US$ 13.0 million of 
which approximately US$ 9.3 million plus VAT remains outstanding). The 
exploration block qualifies for an additional one year extension period at the 
end of the exploration period in the fourth quarter of 2013.

Notes:

  1. Based on the addition of Online's proved and proved plus probable
     reserves effective as of December 31, 2011 as set forth in the
     McDaniel Report to Madalena's proved and proved plus probable
     reserves evaluated by InSite Petroleum Consultants effective as of
     December 31, 2011.  Reserves are "gross reserves", being each
     company's working interest share of reserves before the deduction
     of royalties owned by others and without including royalty


 interests of each company.
  2. Funds from (used in) operations and funds from (used in) 


     operations per common share are Non-GAAP measurements - see the
     discussion under Non-GAAP Measurements contained in the Company's
     MD&A.

Argentina - Cortadera Block (40% working interest)

In March 2012 Apache completed a two stage hydraulic fracture stimulation of 
the Vaca Muerta formation in the CorS X-1 vertical exploration well. Further 
work to assess the Vaca Muerta and/or uphole formations (i.e. Quintuco, 
Mulichinco, and Agrio zones) is required to fully evaluate this deep 
exploration test.

Also in March 2012, a resolution was passed approving Apache's application to 
qualify the Cortadera exploration block for Gas Plus pricing. The Gas Plus 
program was launched at the end of 2008 to stimulate investments in and 
production of natural gas and oil through providing incentives for new 
production of natural gas or oil.

The Company has agreed a work program with provincial authorities to extend 
the initial exploration period of the Cortadera Block beyond the initial 
expiry date of October 26, 2011 and despite delays in formalizing this 
extension, the Company believes that formal approval of the extension remains 
forthcoming.

Argentina - Curamhuele Block (90% working interest)

At the Cur X-1 well the Company mobilized a service rig in the second quarter 
of 2012 for its planned three stage fracture stimulation of the Lower Agrio 
shale formation. At this time operations on the CurX-1 well remain suspended 
after attempts to remove certain down-hole equipment in order to install 
casing for the fracture stimulation were unsuccessful.

In March 2012 the exploration period for the block was extended to November 8, 
2013. The extension of the block required additional work commitments of US$ 
17.6 million (Madalena share - US$ 17.6 million of which approximately US 
$15.1 million plus VAT remains outstanding). The exploration block qualifies 
for an additional one year extension period at the end of the exploration 
period in the fourth quarter of 2013.

FINANCIAL AND OPERATING INFORMATION
                       Three Months Ended           Nine Months Ended
                           September 30,               September 30,
                         2012        2011           2012         2011
                                                      $            $

Financial                                    
Information((1))                                                       

Oil and gas                                  
revenue                1,761,983    619,178      2,533,490    1,989,163

Funds used in                                
operations((2))         (79,767)  (624,174)    (1,932,751)  (2,230,358)

Funds used in                                
operations per
share((2))                   -          -           (0.01)       (0.01)

Cash flow from                               
(used in)
operating
activities           (1,021,582)  (478,183)    (3,158,931)  (2,107,111)

Cash flow from                               
(used in)
operating
activities per
share                        -          -           (0.01)       (0.01)

Net loss               (916,185)  (315,915)    (3,931,534) (14,551,023)

Net loss per share           -          -           (0.01)       (0.06)

Total assets         102,103,537 45,426,540    102,103,537   45,426,540

Working capital       58,752,469 19,730,619     58,752,469   19,730,619

Capital                                      
expenditures           3,632,703  3,011,513     16,541,896   15,951,447

Debt                         -          -              -            -  
                                                                       

Production                                                             

Total production                             
(boe per day)                314        103            148          116
    

1) All amounts per common share are basic and diluted amounts per share


Funds used in operations and funds used in operations per common
2) share are Non-GAAP measurements - see the discussion under Non-GAAP 
Measurements contained in the Company's MD&A. 
RESULTS OF OPERATIONS 
Oil and gas revenue in the third quarter of 2012 was $1,761,983 compared to 
$619,178 in the third quarter of 2011. Oil and gas revenue increased to 
$2,533,490 for the nine months ended September 30, 2012 compared to $1,989,163 
for the corresponding period in 2011. The Company's share of oil production 
from Coiron Amargo Norte in the three and nine month periods ended September 
30, 2012 was 23,127 barrels (251 barrels per day) and 34,745 barrels (127 
barrels per day), respectively. The Company's share of oil production from 
Coiron Amargo Norte in the three and nine month periods ended September 30, 
2011 was 9,462 barrels (103 barrels per day) and 31,741 barrels (116 barrels 
per day), respectively. Net production increased from the corresponding period 
in 2011 due to production from the CAN 5 and CAN 7 wells drilled in May and 
June 2012 partially offset by a reduction in the Company's working interest in 
the block from 52.5% to 35%. The Company's share of oil revenue, operating 
costs and royalty expenses related to production from Coiron Amargo Sur is 
capitalized for accounting purposes and therefore excluded from production and 
revenue information. 
The Company realized a net loss of $916,185 in the third quarter of 2012 
compared to $315,915 in the third quarter of 2011. Net loss increased as the 
third quarter of 2011 included a gain of $1,040,664 associated with the 2011 
farm-out of the Coiron Amargo Block which reduced the Company's interest in 
the block from 52.5% to 35%. Net loss decreased to $3,931,534 for the nine 
months ended September 30, 2012 compared to $14,551,023 for the corresponding 
period in 2011. Net loss decreased primarily due to an impairment loss 
recorded in the second quarter of 2011 with respect to drilling the Curamhuele 
X-1001 exploration well. Total comprehensive loss decreased to $3,705,154 in 
the third quarter of 2012 compared to comprehensive income of $375,579 in the 
third quarter of 2011. Total comprehensive loss for the nine months ended 
September 30, 2012 totaled $5,856,774 compared to a loss of $15,763,243 for 
the corresponding period in 2011. Total comprehensive loss decreased due to 
the decrease in net loss above partially offset by a higher loss on 
translation of foreign operations. Exchange differences on translation of 
foreign operations resulted in a loss of $2,788,969 in the third quarter of 
2012 compared to a gain of $691,494 in the third quarter of 2011 as a result 
of a decrease in the third quarter of 2012 in the value of the Argentina peso 
relative to the Canadian dollar. 
At September 30, 2012 Madalena had working capital of $58,752,469 compared to 
$14,442,910 at December 31, 2011. Working capital increased as the Company 
issued 54,000,000 common shares at an issue price of $1.25 per share for gross 
proceeds to Madalena of $67,500,000. 
The Company had negative funds from operations in the three and nine month 
periods ended September 30, 2012 totaling $79,767 (2011 - $624,174) and 
$1,932,751 (2011 - $2,230,258), respectively. Funds used in operations 
decreased as a result of higher oil revenue. 
ABOUT MADALENA 
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. Madalena is publicly traded on the TSXV under the symbol "MVN". 
Forward Looking Statements and BOE equivalents 
The information in this news release contains certain forward-looking 
statements. These statements relate to future events or our future 
performance. 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 that 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 Company's forward-looking statements 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. 
Any references in this news release to test rates, flow rates, initial and/or 
final raw test or production rates, early production and/or "flush" production 
rates are useful in confirming the presence of hydrocarbons, however, such 
rates are not necessarily indicative of long-term performance or of ultimate 
recovery. Such rates may also include recovered "load" fluids used in well 
completion stimulation. Readers are cautioned not to place reliance on such 
rates in calculating the aggregate production for the Company. In addition, 
the Vaca Muerta shale is an unconventional resource play which may be subject 
to high initial decline rates. 
All calculations converting natural gas to barrels of oil equivalent ("boe") 
have been made using a conversion ratio of six thousand cubic feet (six "Mcf") 
of natural gas to one barrel of oil, unless otherwise stated. The use of boe 
may be misleading, particularly if used in isolation, as the conversion ratio 
of six Mcf of natural gas to one barrel of oil is based on an energy 
equivalency conversion method primarily applicable at the burner tip and does 
not represent a value equivalency at the wellhead. 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 on a 6:1 basis may be misleading as an indication of value. 
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. 
Dwayne H. Warkentin  President and Chief Executive Officer Madalena Ventures 
Inc. Phone: (403) 233-8010 ext 229 
Anthony J. Potter Vice President, Finance and Chief Financial Officer 
Madalena Ventures Inc. Phone: (403) 233-8010 ext 233 
SOURCE: Madalena Ventures Inc. 
To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/November2012/26/c3661.html 
CO: Madalena Ventures Inc.
ST: Alberta
NI: OIL ERN  
-0- Nov/26/2012 22:57 GMT