Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

Madalena Energy Inc. MDLNF

"Madalena Energy Inc a Canadian-based international upstream oil and gas company. The core business activities include exploration, development, and production of crude oil, natural gas liquids, and natural gas. The company holds several exploration blocks such as Santa Victoria Block, El Chivil Block, El Vinalar Block and others. It derives revenue from the sales of Crude oil and Natural gas, of which key revenue is derived from Crude oil sales."


OTCQX:MDLNF - Post by User

Post by MaglanCapitalon Nov 27, 2018 9:30am
256 Views
Post# 29026175

MVN Announces Operating Agreement on Palmar Largo +550 boed

MVN Announces Operating Agreement on Palmar Largo +550 boed
Nice deal. Looks like a steal by Jose
 
This morning, Madalena Energy announced the acquisition of the remaining outstanding working-interests in its Palmar Largo concession (Formosa Province; northern Argentina) ... The press release is below
 
The following are the salient, impactful points:
 
· The concession is already producing (8 wells) and the additional net production (550 bbl/d) will be immediately accretive to Madalena as of Dec 1.
 
· The additional production (550 bbl/d) is a ~30% increase to Madalena’s existing production (~1600 boe/d)
 
· There is NO up-front cost associated with the acquisition; only a commitment to spend $2mm on investment (2 workover and 2 wells).
 
· Netbacks in the concession are $22/bbl. The company’s highest conventional netbacks.
 
· Madalena sees additional synergies with geographically proximate locations, which could/should increase netbacks
 
Madalena Announces Operation Agreement on the Palmar Largo Concession With the Province of Formosa
 
BUENOS AIRES, Argentina, Nov. 27, 2018 (GLOBE NEWSWIRE) -- Madalena Energy Inc. ("Madalena" or the "Company") (TSXV: MVN and OTCQX: MDLNF) is pleased to announce that Madalena has signed an operation agreement with Recursos y Energa Formosa SA ("REFSA"), an oil company belonging to the Province of Formosa (the "Province"), over the Palmar Largo Concession in Formosa, Argentina, effective December 1, 2018 (the "Operation Agreement").
 
Highlights
 
The Palmar Largo Concession’s average gross production during last quarter was 640 Bbls/d with a YTD operating netback of US$22 per barrel and with the agreement Madalena’s net production is expected to increase by approximately 550 Bbls/day
 
2 Year Operation Agreement with a 1 year extension provided that Madalena fulfills its US$2M Investment Commitment
 
The Investment Commitment consists of 2 workovers in 2 wells in order to increase production and certain facility improvements
 
Madalena will operate 100% of the Palmar Largo Concession and will be required to pay the existing 12% royalty on production revenues to the Province and an additional 5.32% of production revenues is to be paid to REFSA under the agreement
 
Madalena will receive 82.68% of production revenues under the agreement and will be responsible for the operation costs of the field.
 
Madalena operates two adjacent areas (El Chivl and Surub) which will allow the realization of significant synergies among the three areas
In 1992, YPF as title holder entered into a Joint Venture Agreement with Pluspetrol SA, Norcen International Limited, CGC SA and Dong Won Co Ltd. with the purpose of exploring, exploiting and developing the Area Palmar Largo. In 2005, Gran Tierra Energy (whose Argentine operations were acquired by Madalena Energy Argentina SA in 2014) acquired a 14% participation interest in the Joint Venture from Dong Won.
 
Palmar Largo’s 25 year concession expired in December, 2017. No agreement on the extension of the concession was reached between the operator, High Luck, and the Province, and as a result the Province issued Provincial Decree 301 dated November 5, 2018 which established a) the 25 year Palmar Largo Concession awarded to YPF expired; b) the Concession area was transferred to the Province and c) the Concession was awarded to REFSA.
 
Madalena’s three areas in the Province (Palmar Largo, Surub and Chivl) cover a surface of 422,960 acres.
 
The 2018 3rd Quarter average daily production of Palmar Largo was approximately 640 bbls from 8 producing wells. The associated gas is used in the field as fuel gas and for the gas lift system. Madalena expects a significant uplift in production from the 3 workovers planned in Palmar Largo and Surubi.
 
Jose David Penafiel, President and CEO of Madalena commented:
 
“The Operation Agreement recently entered into with REFSA which ultimately allows Madalena to increase its net production by approximately 550 barrels per day effective December 1st clearly shows how the Company’s new strategy is working. Since the current management took over in May 2017, our strategy has centered on operational efficiency, and that focus has made us a more effective organization. Our hands-on oversight and participation has not only captured value through costs savings, but has led to this accretive bolt-on opportunity, where REFSA has acknowledged the company as an operator of choice because we are efficient. We will continue to adhere to our key values of patience, prudence, and discipline, and are confident that more growth opportunities will materialize in the future.”
<< Previous
Bullboard Posts
Next >>