Madalena Energy Inc. ("Madalena" or the "Company") (TSXV: MVN and OTCQX: MDLNF) is pleased to announce the commencement of the first horizontal multi-frac re-entry ("the Re-entry Program") in the Vaca Muerta shale formation at Coiron Amargo Sur Este ("CASE").
Madalena's partner, Pan American Energy LLC, Sucursal Argentina ("PAE") is the operator at CASE with a 55% working interest. Madalena and Gas y Petroleo del Neuquén, the provincial oil and gas company in the Province of Neuquén, hold 35% and 10% working interests, respectively.
PAE recently mobilized a drilling rig to the CAS.x-15(ST) location to re-enter the well and Madalena was advised that the Re-entry Program commenced today. The rig will drill horizontally for approximately 1,500 metres and will target the Vaca Muerta unconventional oil resource play at a vertical depth of approximately 3,200 metres. Subsequent to drilling, the drilling rig will be de-mobilized and preparations will commence to mobilize supplies, services and equipment to complete the well with approximately 19 stages of hydraulic fracs.
The total gross estimated cost of this Re-entry Program is $9.8 million, which includes the costs for drilling, completing and equipping the well.
Pursuant to the transactions previously described in the Company's January 11, 2017 and December 7, 2016 news releases, the 2017 work program at CASE is comprised of two well re-entries. Madalena will receive $5.6 million in carried capital costs through this work program.
About Madalena Energy
Madalena is an independent, Canadian headquartered, Argentina focused upstream oil and gas company with operations in four provinces of Argentina where it is focused on the delineation of unconventional resources in the Vaca Muerta shale, Lower Agrio shale and Loma Montosa oil plays. The Company is implementing horizontal drilling and completions technology to develop both its conventional and resource plays.
Madalena trades on the TSX Venture Exchange under the symbol MVN and on the OTCQX under the symbol MDLNF.
SOURCE: Madalena Energy Inc.
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