Madalena Announces Vaca Muerta Drilling Commencement in Coiron Amargo Sur Este Block
2019-05-13 18:40:52.529 GMT
Buenos Aires, Argentina--(Newsfile Corp. - May 13, 2019) - Madalena Energy Inc. (TSXV: MVN) (OTCQX: MDLNF) ("Madalena" or the "Company") announces it has been informed by the operator of the Coiron Amargo Sur Este ("CASE") block that a drilling rig was mobilized and commenced drilling of the CASE-101h well during the first week of May.
Madalena holds a 35% non-operated interest in the CASE block under a 35-year exploitation concession awarded in September 2018. Madalena's share of costs for planned operations at CASE will be funded from the previously announced limited recourse loan for up to $40 million from the operator of the block, Pan American Energy LLC, Sucursal Argentina ("PAE").
The CASE-101h well is the first of a planned four-well drilling program. The plan as currently defined is for the drilling rig to complete the vertical section of each of the planned four wells in succession, following which a separate rig is expected to be used to drill the horizontal well sections of all four wells, prior to completion operations being carried out.
Madalena's CEO Jose Penafiel commented: "We are very pleased to report that drilling operations have begun as part of a 4-well drilling program on the Coiron Amargo Sur Este block, targeting the prolific Vaca Muerta shale with drilling and completion methods that are hoped to further optimize costs and production per well relative to previously drilled wells on the block."