Madalena Ramps Up Domestic Drilling Operations with Two Rigs Focused on Three Horizontal Resource Plays & Production Growth;

Madalena Ramps Up Domestic Drilling Operations with Two Rigs Focused on Three
Horizontal Resource Plays & Production Growth; Internationally, Drilling Moves
 Ahead to Delineate the Vaca Muerta Shale as One of Three Shale Plays Across
                                  its Blocks

  PR Newswire

  CALGARY, Alberta, December 6, 2012

CALGARY, Alberta, December 6, 2012 /PRNewswire/ --

TSXV Trading Symbol: MVN

Madalena Ventures Inc. (" Madalena ") (TSX-V: MVN), an international and
Canadian ("domestic") focused upstream oil and gas company is pleased to
provide the following operational update.

Canadian Operations Update -  Greater Paddle River Core Area :

Madalena has moved two drilling rigs into its core area of operations located
in the Greater Paddle River Area of Central Alberta, where the company holds a
significant acreage position of 197 gross (153 net) sections of land (78%
average working interest and largely operated by Madalena) across multiple
light oil and liquids-rich gas resource plays. Madalena's focus domestically
is to exploit its large inventory of horizontal development locations with the
expectation to increase production and cash flow year over year.

The plan between now and spring break-up is to drill, multi-stage frac, equip
and place on production four to five gross (4.0 to 4.2 net) horizontals
focused across three key resource plays. To increase production and reserves,
the focus throughout 2013 will be to drill horizontals targeting: 1.) Ostracod
oil , 2.) Notikewin / Falher / Wilrich liquids-rich gas stacked development
plays, and 3.) Nordegg oil & liquids-rich gas

Horizontal Resource Play #1 focuses on Ostracod light oil and is highlighted
by a 54 net section position on the play and over 50 already identified, drill
ready, horizontal locations. Madalena's most recent Ostracod horizontal
(Paddle River 01-05) which was put on-stream in mid-October 2012 is currently
exceeding the company's expectations with this horizontal continuing to flow
without the assistance of pumping equipment. In July 2012 the well tested at
an average rate of 438 boe/d (73% oil & liquids) over a three-day period
following a fourteen stage frac completion. The IP 30 day average rate on
this horizontal was 307 boe/d (65% oil & liquids).

Horizontal Resource Play #2 focuses on the low-risk development of Madalana's
regionally stacked Mannville channel trend highlighted by 133 net sections
with liquids-rich Notikewin / Falher / Wilrich stacked development plays,
vertical well production or control throughout, already in place underutilized
pipeline & infrastructure in the area, with liquid contents in the range of 28
to 35 bbls/mmcf, and significant running room for horizontal development.

Horizontal Resource Play #3 which is expected to be drilled, multi-stage
frac'd and tested in the near-term involves an emerging oil & liquids-rich
Nordegg play . Madalena has 144 net sections of Nordegg rights, containing or
proximal to vertical well production which produces oil, and/or high
liquids-rich content gas of over 100 bbls/mmcf. Madalena plans to utilize
North American horizontal technology to test this emerging resource play which
is widespread across its sizeable land position.

International Operations Update - Neuquén Basin

Madalena, which holds three large blocks (or concessions) within the prolific
Neuquén basin in Argentina, continues to move forward to delineate its large
in-place oil & gas unconventional resources with shale positions in the Vaca
Muerta , Agrio and Los Molles shales. 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.

On the Coiron Amargo Block (35% working interest), the CAN 8 development well
located 800 meters south east of the CAN 7 well is drilling ahead at
approximately 7,824 feet to a planned target depth of approximately 10,430
feet. The objectives for the CAN 8 well are both the conventional light oil in
the Sierras Blancas formation as well as to further delineate and assess the
Vaca Muerta shale on the block. Offset to CAN 8, production from the CAN-7
Sierras Blancas alone has now reached over 60,000 bbls since coming on stream
in July this year and continues to flow at over 300 bopd gross with associated

At the end of November, Argentina announced plans to increase gas prices to
$7.50/mmbtu for new gas developments. With import prices significantly above
this, gas related drilling activity in the country will contribute to reduced
gas imports while receiving a substantially higher price than obtained
previously. All three of Madalena's Blocks have the potential to benefit in
the future from this recent announcement via the contribution of new gas
production from both conventional zones of interest and the large-in-place
unconventional shale resources.

Corporate Update - Newly Focused Team, Production Update and Balance Sheet

With a full cycle corporate, technical and operational team now in place,
Madalena is well positioned with expertise to operate assets both domestically
& internationally and is focused on delivering results in 2013 onward.
Madalena's current corporate production is approximately 950 boe/d net (60 %
oil and liquids) including an estimated 650 boe/d net (51% oil and liquids)
from its domestic assets and 300 boe/d net (81 % oil and liquids) from its
international assets. Madalena continues to have a strong balance sheet for
go-forward growth, with approximately $36 million in positive working capital,
zero debt and an undrawn initial $4.75 million bank facility with a major
Canadian bank.

Reader Advisories

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. In particular, this news release
contains forward-looking statements pertaining to operational activities to be
conducted by the Company. 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 .

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 Madalena. 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.

For further information:

Kevin Shaw, P.Eng, MBA  President and Chief Executive Officer, Director
Madalena Ventures Inc. Phone: +1(403)835-3158

Anthony J. Potter VP, Finance and Chief Financial Officer, Director Madalena
Ventures Inc. Phone: +1(403)262-1901 ext 232
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