Madalena Announces its 2013 Year End Financial Results and Highlights, Provides an Operational Outlook

Madalena Announces its 2013 Year End Financial Results and Highlights, 
Provides an Operational Outlook 
TSXV Trading Symbol: MVN   
CALGARY, April 29, 2014 /CNW/ - Madalena Energy Inc. (TSXV: MVN) (the 
"Company" or "Madalena") is pleased to provide selected financial and 
operational information for the three months and year ended December 31, 2013 
and the Company's 2013 year end reserves. 
Copies of the Company's consolidated financial statements for the year ended 
December 31, 2013, the related management's discussion and analysis and the 
Annual Information Form (the "AIF") of the Company for the year ended December 
31, 2013 have been filed with Canadian securities regulatory authorities and 
will be made available under the Company's profile at www.sedar.com and on the 
Company's website at www.madalenaenergy.com. 
2013 HIGHLIGHTS and OUTLOOK 


        --  Established and integrated an experienced, full-cycle operating
            team capable of executing both internationally and
            domestically.
        --  Repositioned Madalena for flexibility with respect to its
            Neuquén basin assets with the signing of three revised block
            contracts (new contractual amendments and/or extensions) at
            each of the Company's Coiron Amargo, Curamhuele and Cortadera
            blocks in Argentina.
        --  Conducted an extensive technical review of the Company's
            unconventional shale resources on its three land blocks within
            the Neuquén basin. Ryder Scott Company evaluated the Vaca
            Muertashale, Lower Agrio shale and Basal Quintuco formation
            throughout the Coiron Amargo, Curamhuele and Cortadera blocks
            and prepared a comprehensive resource report which was released
            on April 30, 2013 and effective December 31, 2012.
            Highlights of the independent resource evaluation are as
            follows:
      o Best Estimate P50 total petroleum initially in place("PIIP") of
        34.8 billion boe (51 % crude oil and natural gas liquids ("NGLs"))
        net to Madalena, comprised of:
        # Best Case P50 discovered PIIP ("DPIIP") of 257.4 million boe (95
          % crude oil and NGLs) and
        # Best Case P50 undiscovered PIIP ("UPIIP") of 34.6 billion boe (50
          % crude oil and NGLs).
      o Best Estimate P50 contingent and prospective resources net to
        Madalena as follows:
        # Best case P50 prospective resources of 2.8 billion boe (45 %
          crude oil and NGLs) and 
        # Best case P50 contingent resources of 19.4 million boe (95 %
          crude oil and NGLs).
      o A further breakdown (by block) of the petroleum initially in place
        and the resource categories aggregating such total are shown in a
        series of tables in the advisory section of this document.
        --  Increased proved plus probable reserves ("P+P") by 19% to 4.648
            MMboe, which is primarily supported by the Company's
            conventional assets. Net present value of these P+P reserves
            before tax, discounted at 10%, increased 49% to $50.2 million
            (see Summary of 2013 Year-end Reserves below).
        --  A large inventory of horizontal locations on Madalena's western
            Canadian and Argentinean lands remains unbooked.
        --  Q4 - 2013 production averaged 1,271 boe/d (56% oil and
            liquids), an increase of 101% from Q4 - 2012.
        --  Madalena has been successfully recapitalized through raising a
            total of $19.5 million in 2013 and an additional $23 million in
            February, 2014.
        --  Maintained a strong balance sheet with zero debt and
            approximately $8.0 million in positive working capital at the
            end of 2013.  With the subsequent $23 million raised in
            February 2014, unutilized credit facilities of $13 million and
            funds from operations throughout 2014, Madalena is well
            positioned to meet its commitments and execute its 2014
            business plan.
        --  In late 2013, Madalena successfully implemented its first use
            of North American based horizontal drilling technology on its
            international assets focused initially at its Coiron Amargo
            block in the Neuquen basin.  Horizontal technology was applied
            to the Sierras Blancas formation which is a conventional light
            oil reservoir sourced from the Vaca Muerta shale across the
            Coiron Amargo block. The CAN.xr-2(h) well was re-entered and
            drilled horizontally and has produced approximately 63,000
            barrels of oil in the first three months of 2014. The results
            to date on the CAN.xr-2(h) horizontal have exceeded
            management's expectations and as a result, Madalena has
            commenced a multi-well horizontal drilling program in Sierras
            Blancas for 2014. To kick-off 2014, the CAN-15(h) well was
            recently drilled horizontally and during testing operations the
            highest rates were achieved on a 12 mm choke setting, when the
            well flowed at a rate of 1,393 bbls/d of oil with 3,301 mcf/d
            of associated natural gas for a total of 1,943 Boe/d (72% oil)
            over a 5 hour period. (see International Operations below).The
            next Sierras Blancas horizontal in the multi-well program for
            2014 is expected to commence drilling in Q2-2014. Madalena has
            a 35% working interest in the Coiron Amargo block.
        --  Madalena has established a 2014 capital budget of $48 million,
            $37 million of which is allocated to Argentina. The 2014 budget
            is focused on a combination of high impact horizontal wells
            targeting the Sierras Blancas light oil play in addition to
            unconventional shale and tight sand delineation wells,
            re-entries and 3D seismic shooting on the Company's
            international assets in Argentina.  Operations in Canada will
            focus on horizontal wells targeting the Ostracod and other
            emerging resource plays in the greater Paddle River area.
        --  Ongoing drilling and completions operations will continue
            across Madalena's international assets in Q2 through to year
            end 2014 and drilling operations are expected to recommence in
            Canada post spring break-up.

SUMMARY FINANCIAL AND OPERATIONAL RESULTS
                                                                   
                                      Three months ended     Year ended
                                         December 31        December 31
                                         2013     2012      2013    2012
    Financial -Canadian $000s, except                                    
    per share amounts
    Oil and gas revenue                  5,633     3,012   17,960   5,545
    Net loss                          (20,527)   (4,934) (23,285) (8,865)
    Per share - basic and diluted       (0.06)    (0.02)   (0.07)  (0.03)
    Business combinations                    -    16,090        -  16,090
    Capital expenditures                13,121     6,310   43,296  22,851
    Working capital                      8,016    30,025    8,016  30,025
    Equity outstanding- 000s                                             
    Common shares                      364,029   314,307  364,029 314,307
    Stock options                       19,530    22,334   19,530  22,334
    Operating                                                            
    Average Daily Production                                             
    Crude oil and condensate - Bbls/d      551       327      392     173
    Natural gas - Mcf/d                  3,366     1,377    3,346     369
    NGLs - Bbls/d                          160        78      137      20
    Total  - boe /d(1)                   1,271       634    1,086     254
    Average Sales Prices                                                 
    Crude oil and condensate - $/Bbl     73.71     74.75    79.69   75.23
    Natural gas -  $/Mcf                  3.52      3.35     3.18    3.41
    NGLs - $/Bbl                         54.99     48.04    53.61   48.04
    Total - $/boe(1)                     48.16     51.66    45.28   59.86
    Operating Netbacks(2)- $/boe(1)      16.82     13.49    15.25   18.18
    (1) Refer to - "Oil, Natural Gas Liquids and Natural Gas Conversions to
        boe" in Advisory.
        Operating netback is a non-GAAP measure calculated as the average
    (2) per boe of the Company's oil and gas sales, less royalties,
        operating and transportation expenses.

SUMMARY OF ARGENTINEAN UNCONVENTIONAL RESOURCES
(as prepared by Ryder Scott Petroleum Consultants Ltd. ("Ryder Scott") in 
accordance with National Instrument 51- 101 - Standards for Disclosure for Oil 
and Gas Activities of the Canadian Securities Administrators ("NI 51-101") 
(see separate press release dated April 30, 2013))

Highlights of the independent resource evaluation are as follows:
        --  Best Estimate P50 total PIIP of 34.8 billionboe (51 % crude oil
            and NGLs) net to Madalena, comprised of:
      o Best Case P50 DPIIP of 257.4 million boe (95 % crude oil and NGLs);
        and
      o Best Case P50 UPIIP of 34.6 billion boe (50 % crude oil and NGLs);
        --  Best Estimate P50 contingent and prospective resources net to
            Madalena as follows:
      o Best case P50 prospective resources of 2.8 billion boe (45 % crude
        oil and NGLs), and
      o Best case P50 contingent resources of 19.4 million boe (95 % crude
        oil and NGLs);
        --  A further breakdown (by block) of the petroleum initially in
            place and resources aggregating such totals are shown below in
            a series of tables in the advisory section of this document.

SUMMARY OF 2013 YEAR-END RESERVES
(as of December 31, 2013 - all amounts are in Canadian dollars and net to 
Madalena's interest unless otherwise stated.)
        --  Total Company proved plus probable ("P+P") reserves of 4.648
            MMboe (51% crude oil and natural gas liquids vs 46% at year-end
            2012) representing a 19% increase from Madalena's 2012 year end
            P+P reserves;
        --  58% of P+P reserves are categorized as proved reserves;
        --  A P+P reserve life index of 10.0 years and a proven reserve
            life index of 5.8 years, based on Q4 - 2013 actual production
            of 1,271 boe/d;
        --  Reserve net present value of P+P reserves before tax
            (discounted at 10%) of $50.2 million representing a 49%
            increase from Madalena's 2012 year end P+P reserves; and

Disclosure of Reserves Data

All of Madalena's international reserves were evaluated by Ryder Scott Company 
and all of Madalena's domestic reserves were evaluated by McDaniel & 
Associates Consultants Ltd. in separate reports dated effective December 31, 
2013 (collectively, the "Reserve Reports").  The Reserve Reports were prepared 
in accordance with NI 51-101 and the standards contained in the Canadian Oil 
and Gas Evaluation Handbook (the "COGE Handbook"). The reserves data provided 
in this news release ("Reserves Data") summarizes the oil, liquids and natural 
gas reserves associated with Madalena's assets and properties and the net 
present values of future net revenue for these reserves using forecast prices 
and costs as at December 31, 2013.   The Reserves Data represents only a 
portion of the disclosure required under NI 51-101. All of the required 
information is in the AIF, which has been filed with Canadian securities 
regulatory authorities and will be made available under the Company's profile 
at www.sedar.com and on the Company's website at www.madalenaenergy.com.

INTERNATIONAL OPERATIONS - Neuquén Basin, Argentina

Coiron Amargo Block
        --  Industry activity in and around Madalena's Coiron Amargo block
            (approximately 35,000 net acres) including developments in the
            greater Loma La Lata and Loma Campana areas has seen a
            significant step change from initial exploration and appraisal
            drilling in 2012 to an accelerated exploitation / development
            phase in the unconventional Vaca Muerta shale through 2013 and
            into 2014.  Over 150 Vaca Muerta shale wells have been drilled
            in and around this area and a number of significant joint
            ventures (or other transactions) over the last 14 months have
            been announced. These largely involve large integrated
            exploration and production companies such as YPF, Chevron,
            Shell, Total SA, Wintershall, Petrobras and others. YPF and
            Chevron have announced a 140 well drilling program in 2014
            targeting the Vaca Muerta shale to the west of Madalena's
            acreage and they expect to increase production from the Vaca
            Muerta shale to approximately 80,000 bbls/d by 2017 in this
            area. Madalena's Coiron Amargo block is strategically
            positioned within this area of intense Vaca Muerta shale
            resource development and Madalena continues to execute its
            business plan in this area.
        --  The Coiron Amargo block is divided into a North and South
            region with active drill programs being executed in both areas.
            Coiron Amargo Notre (the northern portion of the block) is
            currently under a 25 year exploitation (development)
            concession.  The southern portion of the block, Coiron Amargo
            Sur, is currently under an exploration contract which was
            extended until November 8, 2014 by way of an official decree
            signed by the Province of Neuquén in Argentina on November 12,
            2013. Subsequent to November 8, 2014, Madalena has the ability
            to extend Coiron Amargo Sur through further exploration,
            evaluation and/or exploitation (development) phases.
        --  The focus of Madalena's business plan for the Coiron Amargo
            block includes:
                           Continue to advance the Company's Vaca Muerta
                      i)   shale activities with a combination of new
                           delineation wells and completion techniques
                           (stimulations and/or multi-stage fracs);
                           Drill, complete, test and tie-in a number of
                      ii)  high impact horizontal wells targeting Vaca
                           Muerta sourced light oil from the Sierras
                           Blancas reservoir; and
                           Technically assess deep gas potential on the
                      iii) block in response to offsetting industry
                           activity.
        --  Recently, the Company has intensified its focus on the Vaca
            Muerta shale given the unconventional prize across the Coiron
            Amargo block. The block is strategically positioned within the
            Neuquén basin in the shallower portion of the Vaca Muerta oil
            window and in an area where over 150 Vaca Muerta shale wells
            have been drilled over the last 12 to 14 months.  Industry
            activity continues to increase offsetting the Coiron Amargo
            block where Madalena drilled the CAS.x-14 and the CAS.x-15
            vertical wells in Coiron Amargo Sur for the Vaca Muerta shale
            in 2013.  The CAS.x-14 and CAS.x-15 wells were drilled and
            cased encountering approximately 105 and 114 meters
            respectively of Vaca Muerta shale on logs. Completion
            (stimulation work and/or multi-stage frac) activities on these
            wells are expected to commence in Q2 - 2014.
        --  Madalena has implemented a balanced business strategy between
            unconventional shale delineation and high impact horizontal
            drilling. Accordingly, Madalena successfully implemented North
            American based horizontal technology and experience on the
            Coiron Amargo block. As the first implementation of horizontal
            technology internationally, the CAN.xr-2(h) well was
            re-entered, drilled and completed horizontally in the Sierras
            Blancas light oil reservoir which is a high deliverability
            conventional reservoir which is sourced from the Vaca Muerta
            shale. The CAN.xr-2(h) well has now been producing since late
            2013 and has exceeded management's expectations. The well has
            been producing oil at restricted rates for most of Q1 - 2014. 
            Cumulative oil production for Q1-2014, based on field
            estimates, was approximately 63,000 barrels of oil plus
            associated solution gas. Average daily production was
            approximately 700 bbls/d and 1,560 mcf/d of associated solution
            gas for a total of 978 boe/d (72% oil) over a three month
            period in Q1-2014.  The well has been recently tied into a
            permanent pipeline system to the central plant and gas
            dehydration and compressor facility and, accordingly,
            associated solution gas volumes will be realized as sales in
            future quarters.  Madalena has a 35% working interest in the
            CAN.xr-2(h) well.
        --  Encouraged by the results of the CAN.xr-2(h) horizontal,
            Madalena has commenced a multi-well horizontal drilling program
            for 2014. The CAN-15(h) well, in which the Company has a 35%
            working interest, was recently drilled horizontally in the
            Sierras Blancas light oil reservoir in the Coiron Amargo block
            to a total measured depth of 3,750 metres with a horizontal
            lateral section of approximately 692 metres in length.  This
            well is the second horizontal well drilled into the Sierras
            Blancas which is a conventional light oil reservoir sourced
            from the Vaca Muerta shale across the Coiron Amargo block.  The
            well was subsequently cased and completed with a 3.5" slotted
            liner and a multi-rate production test was carried out through
            temporary production facilities. Throughout the multi-rate
            production test, the CAN-15(h) well flowed without artificial
            lift equipment and was tested for approximately 75 hours at
            various choke settings ranging from 6 mm to 12 mm in size with
            the following flow rates observed during the test:
                      i)   With the production test only being carried out
                           on a portion of the horizontal lateral section
                           as planned, the highest rates were achieved on a
                           12 mm choke setting, when the CAN-15(h) well was
                           flowed at a rate of 1,393 bbls/d of oil with
                           3,301 mcf/d of associated natural gas for a
                           total of 1,943 Boe/d (72% oil) over a 5 hour
                           period and at an average flowing pressure of
                           approximately 1,263 psi.
                      ii)  On an 8mm choke setting, the CAN-15(h) well was
                           flowed at a rate of 745 bbls/d of oil with 1,990
                           mcf/d of associated natural gas for a total of
                           1,077 Boe/d (69% oil) over a 29 hour period and
                           at an average flowing pressure of approximately
                           1,629 psi.
                      iii) During the test period of 75 hours, the total
                           gross produced cumulative volumes were
                           approximately 2,553 barrels of oil and
                           approximately 7,210 mcf of natural gas, for a
                           total of approximately 3,754 barrels of oil
                           equivalent (68% oil) gross.   No significant
                           flowing pressure declines were observed
                           throughout the testing period and water cuts
                           ranged from 0% to 3% throughout the test period.
                            
        --  Operationally, Madalena and its partners currently have a
            completion rig running on the Coiron Amargo block with another
            drilling rig scheduled to mobilize to the block in Q2 to
            continue drilling a combination of high impact horizontals and
            Vaca Muerta shale delineation wells.
        --  Two 3D seismic programs were shot at Coiron Amargo Sur during
            the second quarter of 2013 and were subsequently processed in
            the third quarter. The Coiron Amargo block (both north and
            south regions) is now almost entirely covered with 3D seismic.

Curamhuele Block
        --  The greater El Trapial / Curamhuele region is an evolving area
            within the Neuquén basin which is seeing increased exploration
            and appraisal activity for unconventional shale plays and tight
            sand reservoirs. Chevron has recently announced that a second
            focus area for Chevron in the Vaca Muerta shales is the El
            Trapial block which is adjacent and to the east of Madalena's
            90% working interest Curamhuele block.  At El Trapial, Chevron
            is drilling and testing four exploration wells in 2014 to
            further assess the unconventional shale potential.  Others,
            such as YPF are also drilling on lands offsetting Madalena's
            Curamhuele block for unconventional shale and tight sand plays.
        --  The primary zones of interest across the Curamhuele block are
            the unconventional Vaca Muerta shale, Lower Agrio shale and
            liquids rich Mulichinco sands. The block is also prospective
            for other conventional reservoirs.
        --  To satisfy a portion of the 2014 block commitments, Madalena
            has recently shot an approximately 75 square kilometer 3D
            seismic survey at Curamhuele. Processing of this data is
            currently underway. The Company plans to merge this newly
            acquired data with the existing 125 square kilometer 3D survey
            on the block.  This will provide 3D seismic coverage on the
            entire northern portion of the Curamhuele block.
        --  To satisfy the remaining 2014 block commitments, Madalena plans
            to execute two high impact re-entries of the Yp.x-1001 and
            Ch.x-1 wellbores. Through these re-entries, Madalena plans to
            test an estimated 200 meter thick tight Mulichinco sand
            liquids-rich gas play and an estimated 225 meter thick oil zone
            in the Lower Agrio shale (which is a second emerging
            unconventional shale play in Argentina). In response to
            offsetting industry activity, Madalena is also evaluating the
            Vaca Muerta shale across the block.
        --  To accelerate exploration and development activities on the
            block, the Company continues to assess different opportunities
            with RBC Capital Markets ("RBC"), Madalena's exclusive advisor
            related to its Neuquén basin assets, in respect of a possible
            joint venture partnership or other transaction.

Cortadera Block
        --  On January 15, 2014, the Corporation announced that, on the
            Cortadera Block, the joint venture partnership consisting of
            Apache Corporation, Gas y Petroleo del Neuquén SA and Madalena
            had signed an amended contract agreement to formalize a
            multi-year extension of the initial exploration period and
            inclusion of subsequent exploration periods. Subsequent to that
            agreement and following an application and approval process,
            the first exploration period for Cortadera was extended by way
            of an official decree which was signed by the Province of
            Neuquén in Argentina. This extension provides the partnership
            until October 26, 2014 to satisfy the remaining work
            commitments on the block, which involves an upcoming re-entry
            of the CorS.x-1 well. Under the amended agreement, and
            subsequent to conducting the upcoming re-entry work, the
            partnership at Cortadera has the option to enter into a second
            exploration period extending to October 25, 2018 and a third
            exploration period extending to October 25, 2021, or extend the
            Cortadera Block through potential further evaluation and/or
            exploitation phases.
        --  Madalena and its new block partner YPF S.A. (acquired through
            YPF's recent purchase of the Apache subsidiary in Argentina)
            plan to re-enter the previously drilled CorS.x-1 Vaca Muerta
            test well to evaluate the uphole Mulichinco tight sand play (or
            other zone of interest). Madalena expects that its share of any
            costs for the work performed will not be significant due to
            YPF's continued earning obligations which include carrying
            Madalena for the majority of the anticipated costs.

DOMESTIC OPERATIONS - Greater Paddle River Area, Alberta, Canada
        --  Domestically, Madalena's core area of operations is located in
            the greater Paddle River area, where the Company holds
            approximately 196 gross (154 net) sections of land
            (approximately 78% average working interest) in west-central
            Alberta that support light oil and liquids-rich gas resource
            plays.  Madalena entered the domestic E&P space in November,
            2012 and executed horizontal drilling activity in 2013 with a
            focus of bringing increased production and cash flow into the
            company.
        --  Drilled 6 (5.92 net) wells in 2013 including 4 development
            horizontals and 2 exploration wells which qualify for Canadian
            Exploration Expense ("CEE") , resulting in 4 (4 net) oil wells;
        --  Continued to make progress on the Ostracod horizontal oil
            project with 5 (4.92 net) wells drilled in 2013. Four (4.0 net)
            of these wells are currently on production while the fifth
            (0.92 net), a significant step-out well drilled in late 2013,
            continues to be evaluated. Q4 - 2014 production from the
            producing Ostracod wells represented 70% of the Company's
            domestic production of 1,098 boe/d. Operating costs for the
            Ostracod horizontal wells in Q4, 2013 were $14.54 per boe. 
            Overall, the Company has gained valuable insights during 2013
            on its emerging Ostracod project and has an inventory of
            horizontal development locations on its 58 net section land
            position.
        --  Madalena's domestic focus is to exploit its inventory of
            horizontal development locations on its Ostracod oil,
            Notikewin/Wilrich liquids-rich gas and other emerging oil &
            liquids-rich gas resource plays in the area.  Madalena also
            holds more than 100 net sections (100% W.I.) which are
            prospective for the Duvernay shale.

About Madalena - International and Domestic 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.

Internationally, Madalena holds three large blocks within the Neuquén basin 
in Argentina where it is focused on the delineation of large petroleum 
in-place shale and unconventional resources in the Vaca Muerta and Lower Agrio 
shales, in addition to multiple tight sand plays. The Company is also 
implementing horizontal drilling and completions technology to high impact 
international plays and is currently focused on a conventional oil play in the 
Sierras Blancas formation. Madalena holds approximately 132,200 net acres on 
the Coiron Amargo (34,951 net acres), Curamhuele (50,595 net acres) and 
Cortadera (46,656 net acres) blocks.

Domestically, Madalena's core area of operations is located in the Greater 
Paddle River area of west-central Alberta where the Company holds 
approximately 200 gross (>150 net) sections of land (approximately 78% average 
W.I.) encompassing light oil and liquids-rich gas resource plays. Madalena's 
primary domestic focus is to exploit its large inventory of horizontal 
drilling locations on its Ostracod oil and emerging oil & liquids-rich gas 
resource plays.

Madalena trades on the TSX Venture Exchange under the symbol MVN. Basic 
corporate information, recent news releases and regularly updated corporate 
presentations are available on the Company's website at www.madalenaenergy.com

Reader Advisories

Forward Looking Information

The information in this news release contains certain forward-looking 
statements. These statements relate to future events or our future 
performance, including, without limitation, with respect to expected 
operational activities, including drilling, completion, re-entry, evaluation 
and seismic activities, and the timing thereof, timing matters related to 
Madalena's properties, including potential block extensions and matters 
pertaining to Madalena's efforts to seek a joint venture partner for certain 
assets.  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 planned operational 
activities to be conducted by the Company. In addition, statements relating to 
"reserves" or "resources" are deemed to be forward-looking statements as they 
involve the implied assessment, based on certain estimates and assumptions, 
that the reserves and resources described exist in the quantities predicted or 
estimated and can be profitably produced in the future. 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

Reserves and Other Oil and Gas Disclosure

Any references in this news release to test rates, flow rates, initial and/or 
final raw test or production rates, early production, test volumes behind pipe 
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. While Madalena is 
very encouraged by the initial results from the CAN-15(h) horizontal well, the 
flowback information disclosed above should be considered preliminary and is 
not indicative of the well's long-term performance. Ongoing technical work and 
operational enhancements are expected to continue to improve the Company's 
understanding of the ultimate potential of its Sierras Blancas horizontal oil 
play.

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.

Certain information in this document may constitute "analogous information" as 
defined in National Instrument 51-101 - Standards of Disclosure for Oil and 
Gas Activities ("NI 51-101"), including, but not limited to, information 
relating to areas, assets, wells and/or operations that are in geographical 
proximity to or believed to be on-trend with lands held by Madalena. Such 
information has been obtained from public sources, government sources, 
regulatory agencies or other industry participants.  Management of Madalena 
believes the information may be relevant to help define the reservoir 
characteristics in which Madalena may hold an interest and such information 
has been presented to help demonstrate the basis for Madalena's business plans 
and strategies.

However, such analogous information has not been prepared in accordance with 
NI 51-101 and the Canadian Oil and Gas Evaluation Handbook and Madalena is 
unable to confirm that the analogous information was prepared by a qualified 
reserves evaluator or auditor.  Madalena has no way of verifying the accuracy 
of such information. There is no certainty that the results of the analogous 
information or inferred thereby will be achieved by Madalena and such 
information should not be construed as an estimate of future production levels 
or the actual characteristics and quality of Madalena's assets. Such 
information is also not an estimate of the reserves or resources attributable 
to lands held or to be held by Madalena and there is no certainty that such 
information will prove to be analogous in the future. The reader is cautioned 
that the data relied upon by Madalena may be in error and/or may not be 
analogous to such lands to be held by Madalena.

Notes to Disclosure of Resources
    (1) "Total Petroleum Initially In Place" means DPIIP + UPIIP.  When
        calculating DPIIP, there is no material production or reserves
        associated with these properties. Contingent resources is the only
        category of DPIIP that has been categorized as recoverable. 
        Prospective resources is the only category of UPIIP that has been
        categorized as recoverable.  There is no certainty that it will be
        commercially viable to produce any portion of the contingent
        resources referred to in the tables above.  There is no certainty
        that any portion of the prospective resources referred to in the
        tables above will be discovered. If discovered, there is no
        certainty that it will be commercially viable to produce any
        portion of these resources.
    (2) Certain volumes are arithmetic sums of multiple estimates of
        contingent & prospective resources, which statistical principles
        indicate may be misleading as to volumes that may actually be
        recovered. Readers should give attention to the estimates of
        individual classes of resources and appreciate the differing
        probabilities of recovery associated with each class as explained
        herein.  Details on the categories that comprise these calculations
        are in the tables that follow.
             Coiron Amargo Discovered Petroleum Initially In Place (1)(net to Madalena)
                           Oil, NGLs and Natural Gas at December 31, 2012
                       Oil & NGLs                Natural Gas         Oil & NGLs + Natural
                        (MMbbl)                     (Tcf)                Gas (MMboe)
             Low      Best     High     Low      Best     High     Low      Best     High
           Estimate Estimate Estimate Estimate Estimate Estimate Estimate Estimate Estimate
             P90      P50      P10      P90      P50      P10      P90      P50      P10
     Vaca
    Muerta   242.6    244.4    246.2    0.077    0.077    0.078    255.4    257.4    259.2
    Shale
        
    Note:
    (1)  When calculating DPIIP, there is no material production or
         reserves associated with these properties.  All DPIIP, other than
         contingent  resources, has been categorized as unrecoverable. 
         There is no certainty that it will be commercially viable to
         produce any portion of the  resources referred to in the table
         above.
    (2)  These volumes are arithmetic sums of multiple estimates, which
         statistical principles indicate may be misleading as to volumes
         that may  actually be recovered. Readers should give attention to
         the estimates of individual classes of resources and appreciate
         the differing  probabilities of recovery associated with each
         class as explained herein.
                                Coiron Amargo Contingent Resources(1)(net to Madalena)
                                 Oil, NGLs and Natural Gas at December 31, 2012
                       Oil & NGLs                Natural Gas      Oil & NGLs + Natural Gas
                        (MMbbl)                     (Tcf)                 (MMboe)
             Low      Best     High     Low      Best     High     Low      Best     High
           Estimate Estimate Estimate Estimate Estimate Estimate Estimate Estimate Estimate
             P90      P50      P10      P90      P50      P10      P90      P50      P10
     Vaca
    Muerta    5.8      18.3     30.6    0.002    0.006     0.01     6.1      19.3     32.2
    Shale
    Notes:
        There is no certainty that it will be commercially viable to
    (1) produce any portion of the resources referred to in the table
        above.
             Coiron Amargo Undiscovered Petroleum Initially In Place(1)(net to Madalena)
                           Oil, NGLs and Natural Gas at December 31, 2012
                                Oil & NGLs                Natural Gas        Oil & NGLs +
                                 (MMbbl)                     (Tcf)            Natural Gas
                                                                                (MMboe)
             Low      Best     High     Low      Best     High     Low      Best     High
           Estimate Estimate Estimate Estimate Estimate Estimate Estimate Estimate Estimate
             P90      P50      P10      P90      P50      P10      P90      P50      P10
     Vaca
    Muerta 2,687.8  2,717.5  2,747.5    0.851    0.861    0.870  2,829.7  2,860.9  2,892.5
    Shale
       Notes:
    (1) Prospective resources is the only category of UPIIP that has been
        categorized as recoverable.  There is no certainty that any portion
        of the  resources referred to in the table above will be
        discovered. If discovered, there is no certainty that it will be
        commercially viable to produce  any portion of these resources.
    (2) These volumes are arithmetic sums of multiple estimates, which
        statistical principles indicate may be misleading as to volumes
        that may  actually be recovered. Readers should give attention to
        the estimates of individual classes of resources and appreciate the
        differing  probabilities of recovery associated with each class as
        explained herein.
                               Coiron Amargo Prospective Resources(1)(net to Madalena)
                                Oil, NGLs and Natural Gas at December 31, 2012
                       Oil & NGLs                Natural Gas      Oil & NGLs + Natural Gas
                        (MMbbl)                     (Tcf)                 (MMboe)
             Low      Best     High     Low      Best     High     Low      Best     High
           Estimate Estimate Estimate Estimate Estimate Estimate Estimate Estimate Estimate
             P90      P50      P10      P90      P50      P10      P90      P50      P10
     Vaca
    Muerta   122.7    249.7    377.2    0.039    0.079    0.119    129.2    262.9    397.1
    Shale
    Notes:
    (1) Prospective resources is the only category of UPIIP that has been
        categorized as recoverable. There is no certainty that any portion
        of the resources referred to in the table above will be discovered.
        If discovered, there is no certainty that it will be commercially
        viable to produce any portion of these resources.
               Curamhuele Undiscovered Petroleum Initially In Place(1)(net to Madalena)
                            Oil, NGLs and Natural Gas at December 31, 2012
                                Oil & NGLs                Natural Gas        Oil & NGLs +
                                 (MMbbl)                     (Tcf)            Natural Gas
                                                                                (MMboe)
             Low      Best     High     Low      Best     High     Low      Best     High
           Estimate Estimate Estimate Estimate Estimate Estimate Estimate Estimate Estimate
             P90      P50      P10      P90      P50      P10      P90      P50      P10
    Lower
    Agrio  3,835.7  4,763.4  5,834.0    2.777    3.955    5.443  4,298.4  5,422.5  6,741.2
    Shale
     Vaca
    Muerta 7,884.8  9,642.9  11,762.2  17.405   52.017   90.208  10,785.7 18,312.3 26,796.9
    Shale
    Total  11,720.5 14,406.2 17,596.2  20.182   55.971   95.651  15,084.2 23,734.8 33,538.1
       Notes:
    (1) Prospective resources is the only category of UPIIP that has been
        categorized as recoverable. There is no certainty that any portion
        of the resources referred to in the table above will be discovered.
        If discovered, there is no certainty that it will be commercially
        viable to produce any portion of these resources.
    (2) These volumes are arithmetic sums of multiple estimates, which
        statistical principles indicate may be misleading as to volumes
        that may actually be recovered. Readers should give attention to
        the estimates of individual classes of resources and appreciate the
        differing probabilities of recovery associated with each class as
        explained herein.
                                 Curamhuele Prospective Resources(1)(net to Madalena)
                                 Oil, NGLs and Natural Gas at December 31, 2012
                       Oil & NGLs                Natural Gas      Oil & NGLs + Natural Gas
                        (MMbbl)                     (Tcf)                 (MMboe)
             Low      Best     High     Low      Best     High     Low      Best     High
           Estimate Estimate Estimate Estimate Estimate Estimate Estimate Estimate Estimate
             P90      P50      P10      P90      P50      P10      P90      P50      P10
    Lower
    Agrio     86.1    328.6    596.2    0.070    0.266    0.524     97.8    373.0    683.5
    Shale
     Vaca
    Muerta   174.7    667.4  1,207.4    0.663    2.942    8.096    285.2  1,157.6  2,556.7
    Shale
    Total    260.8    996.0  1,803.6    0.733    3.208    8.620    382.9  1,530.6  3,240.2
    Notes:
    (1) There is no certainty that any portion of the resources referred to
        in the table above will be discovered. If discovered, there is no
        certainty that it will be commercially viable to produce any
        portion of these resources.
                 Cortadera Undiscovered Petroleum Initially In Place(1)(net to Madalena)
                             Oil, NGLs and Natural Gas at December 31, 2012
                         Oil & NGLs                Natural Gas      Oil & NGLs + Natural Gas
                          (MMbbl)                     (Tcf)                 (MMboe)
               Low      Best     High     Low      Best     High     Low      Best     High
             Estimate Estimate Estimate Estimate Estimate Estimate Estimate Estimate Estimate
               P90      P50      P10      P90      P50      P10      P90      P50      P10
     Basal      46.8    108.8    184.8   16.234   22.706   29.003  2,752.4  3,893.1  5,018.6
    Quintuco
      Vaca
     Muerta     52.8    118.0    184.4   22.277   23.656   25.082  3,765.6  4,060.6  4,364.7
     Shale
      Total     99.6    226.8    369.2   38.510   46.362   54.085  6,518.0  7,953.7  9,383.3
       Notes:
    (1) Prospective resources is the only category of UPIIP that has been
        categorized as recoverable. There is no certainty that any portion
        of the  resources referred to in the table above will be
        discovered. If discovered, there is no certainty that it will be
        commercially viable to produce  any portion of these resources.
    (2) These volumes are arithmetic sums of multiple estimates, which
        statistical principles indicate may be misleading as to volumes
        that may  actually be recovered. Readers should give attention to
        the estimates of individual classes of resources and appreciate the
        differing  probabilities of recovery associated with each class as
        explained herein.
                                   Cortadera Prospective Resources(1)(net to Madalena)
                                  Oil, NGLs and Natural Gas at December 31, 2012
                         Oil & NGLs                Natural Gas      Oil & NGLs + Natural Gas
                          (MMbbl)                     (Tcf)                 (MMboe)
               Low      Best     High     Low      Best     High     Low      Best     High
             Estimate Estimate Estimate Estimate Estimate Estimate Estimate Estimate Estimate
               P90      P50      P10      P90      P50      P10      P90      P50      P10
     Basal      5.6      14.0     27.2    1.745    2.932    4.569    296.5    502.6    788.7
    Quintuco
      Vaca
     Muerta     6.4      14.8     27.6    1.958    3.189    4.428    332.7    546.3    765.6
     Shale
      Total     12.0     28.8     54.8    3.703    6.121    8.997    629.2  1,048.9  1,554.3
    Notes:
    (1) Prospective resources is the only category of UPIIP that has been
        categorized as recoverable. There is no certainty that any portion
        of the resources referred to in the table above will be discovered.
        If discovered, there is no certainty that it will be commercially
        viable to produce any portion of these resources.
                                        
    Definitions                                                            
    "Contingent resources"             Definition: Those quantities of
                                       petroleum estimated, as of a given
                                       date, to be potentially recoverable
                                       from known accumulations using
                                       established technology or technology
                                       under development, but which are not
                                       currently considered to be
                                       commercially recoverable due to one
                                       or more contingencies. Contingencies
                                       may include factors such as
                                       economic, legal, environmental,
                                       political, and regulatory matters or
                                       a lack of markets. It is also
                                       appropriate to classify as
                                       contingent resources the estimated
                                       discovered recoverable quantities
                                       associated with a project in the
                                       early evaluation stage.
                                        
    "Discovered petroleum              Definition: That quantity of
    initially-in-place" or "discovered petroleum that is estimated, as of a
    resources" or "DPIIP"              given date, to be contained in known
                                       accumulations prior to production.
                                       The recoverable portion of
                                       discovered petroleum
                                       initially-in-place includes
                                       production, reserves and contingent
                                       resources; the remainder is
                                       unrecoverable.
                                        
    "Prospective resources"            Definition: Those quantities of
                                       petroleum estimated, as of a given
                                       date, to be potentially recoverable
                                       from undiscovered accumulations by
                                       application of future development
                                       projects. Prospective resources have
                                       both an associated chance of
                                       discovery and a chance of
                                       development.
                                        
    "Total petroleum                   Definition: That quantity of
    initially-in-place", "total        petroleum that is estimated to exist
    resources" or "TPIIP"              originally in naturally occurring
                                       accumulations; equal to DPIIP plus
                                       UPIIP. It includes that quantity of
                                       petroleum that is estimated, as of a
                                       given date, to be contained in known
                                       accumulations, prior to production,
                                       plus those estimated quantities in
                                       accumulations yet to be discovered.
                                        
    "Undiscovered petroleum            Definition: That quantity of
    initially-in-place", "undiscovered petroleum that is estimated, on a
    resources" or "UPIIP"              given date, to be contained in
                                       accumulations yet to be discovered.
                                       The recoverable portion of
                                       undiscovered petroleum
                                       initially-in-place is referred to as
                                       prospective resources; the remainder
                                       is unrecoverable.

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 Energy Inc. 
Kevin Shaw, P.Eng, MBA President and Chief Executive Officer Madalena 
Ventures Inc. Phone: (403) 262-1901 (Ext. 230) kdshaw@madalenaenergy.com  
Thomas Love, CA VP, Finance and Chief Financial Officer, Madalena Ventures 
Inc. Phone: (403) 262-1901 (Ext. 227) tlove@madalenaenergy.com 
To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/April2014/29/c5591.html 
CO: Madalena Energy Inc.
ST: Alberta
NI: OIL ERN  
-0- Apr/29/2014 13:20 GMT
 
 
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