Madalena provides operations update

                     Madalena provides operations update

PR Newswire

CALGARY, Jan. 17, 2013

TSXV Trading Symbol: MVN

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.

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 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 Madalena. In addition,  the 
Notikewin and Vaca Muerta shales are unconventional and/or horizontal resource
plays 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.

SOURCE Madalena Ventures Inc.

Contact:

Kevin Shaw
President and Chief Executive Officer
Madalena Ventures Inc.
Phone: (403) 262-1901 (Ext. 230)
kdshaw@madalena-ventures.com

Anthony J. Potter
VP, Finance and Chief Financial Officer
Madalena Ventures Inc.
Phone: (403) 262-1901 (Ext. 232)
potter@madalena-ventures.com
 
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