Madalena En­ergy’s CAS.x-15 well tests at 430 bopd

Stockwatch Daily - - ENERGY - Mr. Jose Pe­nafiel re­ports

MADALENA EN­ERGY Inc. has re­leased the ini­tial re­sults of the com­ple­tion and test­ing of the first hor­i­zon­tal mul­ti­frac well in the Vaca Muerta shale for­ma­tion at the Co­iron Amargo Sur Este (CASE) block in Ar­gentina.

Madalena’s part­ner, Pan Amer­i­can En­ergy LLC, Su­cur­sal Ar­gentina (PAE), is the op­er­a­tor at CASE with a 55-per-cent work­ing in­ter­est. Madalena and Gas y Petroleo del Neuquen, the pro­vin­cial oil and gas com­pany in the prov­ince of Neuquen, hold 35-per-cent and 10-per-cent work­ing in­ter­ests, re­spec­tively. Pur­suant to cer­tain trans­ac­tions de­scribed in pre­vi­ous news re­leases of the com­pany, the 2017 work pro­gram at CASE com­prises two well re-entries with a net ben­e­fit to Madalena of up to $5.6-mil­lion in car­ried cap­i­tal costs.


• PAE suc­cess­fully re-en­tered the CAS.x-15 well and drilled hor­i­zon­tally for ap­prox­i­mately 1,000 me­tres in the Vaca Muerta un­con­ven­tional oil re­source play at a ver­ti­cal depth of ap­prox­i­mately 3,200 me­tres;

• A liner with frac sleeves has been run and ce­mented. The well was com­pleted rig less at the end of May with 37 hy­draulic frac stages with ap­prox­i­mately 6,500 klb of prop­pant and 90,000 bar­rels of to­tal fluid;

• The well tested an av­er­age of 430 bar­rels of oil per day through three-mil­lime­tre choke for the last four weeks;

• Re­cov­ered ap­prox­i­mately 18 per cent of frac­ture fluid dur­ing the first week and no wa­ter pro­duc­tion has been re­ported since that time;

• The well CAS.x-15(ST) tested the Vaca Muerta shale struc­tured con­cept, of­fer­ing new in­sights into the play ex­ten­sion within the frac­ture trend;

• To­tal gross es­ti­mated cost of this re-en­try is $8.72-mil­lion (U.S.), which in­cludes the costs for drilling, com­plet­ing and equip­ping the well.

Jose David Pe­nafiel, chief ex­ec­u­tive of­fi­cer of Madalena En­ergy, com­mented:

“The test re­sults of CAS.x-15(ST) are ex­tremely en­cour­ag­ing and we are now look­ing for­ward to in­creased pro­duc­tion rev­enue as a re­sult of this new well.

“The well re­sults of CAS.x-15(ST) are sig­nif­i­cant on a num­ber of grounds. It has sig­nif­i­cantly de­risked Madalena’s Vaca Muerta acreage in the CASE block, sup­port­ing the com­pany’s in­ter­nal con­tin­gent re­sources es­ti­mates. To ob­tain these test re­sults from just 1,000 me­tres and 37 frac stages is clearly sat­is­fy­ing, how­ever, Madalena be­lieves that with fur­ther im­prove­ments to the drilling and com­ple­tion tech­niques, con­sid­er­ably more can be re­al­ized from the next wells that will be drilled on the CASE block. This re­sult high­lights the prospec­tiv­ity of our Vaca Muerta acreage, we are ex­cited to fur­ther de­lin­eate and de­velop the CASE acreage with our part­ner Panamer­i­can En­ergy.”

About Madalena En­ergy Inc.

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.

We seek Safe Har­bor.

Dou­glas E Brooks, Gus D Halas, Barry B Lar­son, Keith El­liott Mac­Don­ald, Eric Mark, Jay Pa­trick Reid, Steven Lawrence Sharpe, Ving Yee Woo

(MVN) Shares: 543,779,237

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