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

PR Newswire

CALGARY, April 29, 2014

TSXV Trading Symbol: MVN

CALGARY, April 29, 2014 /PRNewswire/ - 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 Muerta shale, 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:

       *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).

       *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).

       *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 per boe
(2) 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 billion boe (51 % crude oil and NGLs)
    net to Madalena, comprised of:

       *Best Case P50 DPIIP of 257.4 million boe (95 % crude oil and NGLs);
         and
       *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:

       *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);

  *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 shale
         i)   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 high
         ii)  impact horizontal wells targeting Vaca Muerta sourced
                       light oil from the Sierras Blancas reservoir; and
         iii) Technically assess deep gas potential on the 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,
    theCompany continues to assess different opportunities withRBC 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:
(1) There is no certainty that it will be commercially viable to 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 petroleum that is
initially-in-place" or      estimated, as of a given date, to be contained in
"discovered resources" or   known accumulations prior to production. The
"DPIIP"                     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 petroleum that is
initially-in-place", "total estimated to exist originally in naturally
resources" or "TPIIP"       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 petroleum that is
initially-in-place",        estimated, on a given date, to be contained in
"undiscovered resources" or accumulations yet to be discovered. The
"UPIIP"                     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.

Contact:

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
 
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