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  
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