Head Office: MADALENA ENERGY INC. Suite 3200, 500 - 4th Avenue SW Calgary, Alberta, Canada T2P 2V6 Argentina Office: MADALENA ENERGY S.A. Madalena 421 Lola Mora, 13th Floor Buenos Aires, ARG C1011ABE e n e r g y inc.…
MADALENA ENERGY INC.: Overview FOCUSED ON DELINEATING SHALE AND UNCONVENTIONAL RESOURCES IN ARGENTINA Trading Symbol: TSXV MVN OTCQX MDLNF Total Issued and Outstanding Shares 542.1 million Market Capitalization (0.30/share) 162.0…
RESERVES GROWTH: Conventional Drilling and Acquisitions Conventional Reserves Provide Value Backstop Unconventional & Shale Asset Upside Potential Not Included in Data Below Growth 2014 vs. 2013 155% increase in Proved + Probable…
RESOURCES: Independent Reports (Summary) Contingent and Prospective Resources as evaluated by GLJ and Ryder Scott effective Sept. 30, 2015 Contingent Resources include: Prospective Resources include: Vaca Muerta shale at Coiron…
ARGENTINA OIL PRICING: Current Regulated Premium to Brent In Argentina, oil prices are set by the government monthly for product sold into the domestic oil market Q4 -2015 average Argentina (Medanito) posted oil price set at USD 75 per…
ARGENTINA PROPERTIES: Multiple Blocks in Two Basins Block Summary Block W.I. Operator Net Acres Province/Basin Valle Morado1 97% Madalena 47,423 Salta/Noroeste Santa Victoria1 100% Madalena 516,846 Salta/Noroeste El Vinalar 100%…
GROWTH STRATEGY: Delineating Unconventional Resources in the Neuquen Basin 2015/16 Operations: Vertical & Horizontal Activities Continue to Delineate Four Unconventional Resource Plays MULICHINCO RESOURCE PLAY (Liquids-rich Gas)…
VACA MUERTA: One of Largest Shale Plays Outside of N. America1 Thickness of 100 metres to 500+ metres Progressively deeper & thicker from east to west in the basin The Vaca Muerta is oil prone at Coiron Amargo Madalena expects the…
COIRON AMARGO: In the Vaca Muerta Activity Sweet Spot Wintershall - Aguada Federal; March 16, 2015 (Wintershall website) -2 vertical VM wells in 2015 -Contingency of 6 horizontal VM wells Petronas La Amarga Chica; Dec 2014…
COIRON AMARGO: Offsetting Vaca Muerta Production Increases Vaca Muerta Development at Loma Campana over 30,000 Boe/d Source: September 2015 GiGa Consulting Quarterly Report on Unconventionals Neuqun Basin Argentina *** See…
COIRON AMARGO: Vaca Muerta Hz Development Accelerating Madalena Sierras Blancas Light Oil Note: 1) All Production data up to Oct 2015 Source: Secretaria De Energia (www.energia.gov.ar) *** See Analogous Information on slide 36…
COIRON AMARGO: Vaca Muerta Economics vs Oil Price NPV10% per Well vs Oil Price 30 26.7 Low 25 21.4 Best NPV10% (US MM) 20 High 16.1 13.7 15 10.9 10.2 10 6.7 5.8 3.3 3.4 5 1.1 -1.3 0 40 50 60 70 80 90 -5 OIL PRICE…
COIRON AMARGO: Vaca Muerta Resources Contingent Resources as evaluated by GLJ effective Sept. 30, 2015 Vaca Muerta Shale Madalena Company Interest Low Est Best Est High Est Discovered Petroleum Initially In Place (DPIIP) (MMBbls)…
COIRON AMARGO NORTH: Sierras Blancas Horizontal Wells Applying N.A. Horizontal Technology to Conventional Light Oil Development Coiron Amargo Norte (108 km2) converted to 25-year exploitation license (MVN 35% W.I. -Non-Op) Six…
CURAMHUELE: Multiple Resource Plays Exploration Concession Operated 90% W.I. in 56,216 gross Filo Morado (50,595 net) acres El Trapial High-impact Plays : Lower Agrio shale Light oil Mulichinco tight sand Gas and liquids Loma…
CURAMHUELE: Lower Agrio Shale Delineation Well Madalenas recent drilling results at Yp.x-1001 supports CURAMHUELE Yp.x-1, Yp.x-1st the regional isopach mapping. The well encountered & Yp.x-1001 270 metres of continuous oil and gas…
CURAMHUELE: Lower Agrio vs Vaca Muerta Shales CURAMHUELE LOMA CAMPANA SJ.Nq.Yp.x-1 YPF.Nq.AnN.x-1 This well is representative of the YPF successes in the Vaca Muerta at Loma Campana Log character of the L. Agrio at Curamhuele…
CURAMHUELE: Lower Agrio & Vaca Muerta Resources Prospective Resources as evaluated by GLJ and Ryder Scott effective Sept. 30, 2015 Lower Agrio Shale Vaca Muerta Shale Madalena Company Interest Madalena Company Interest Low Est Best…
PUESTO MORALES: Loma Montosa Scalable Oil Resource Play Light Oil Resource Play at Puesto Morales field MVN is operator with 100% W.I. Tight Dolostones with good well control in Loma Montosa zone Shallow drill depths with TVD 1350…
PUESTO MORALES: Loma Montosa Scalable Oil Resource Play Implementing North American Horizontal Multi Frac Technology in Argentina Dec 31, 2014 Reserve Report has Eight Loma Montosa Hz Undeveloped wells BOOKED Proved + Probable…
PUESTO MORALES: Facilities 100% Operated Original cost US40 MM to build Plant & Infrastructure Supports Additional Horizontal Development of Q3 - 2015 Oil Loma Montosa Oil Resource Play 959 Bbl/d Capacity 12,000 Bbls/d Q3 -…
NOROESTE BASIN: Conventional Light Oil Production with Exploration & Development Upside Valle Morado Gas Project Resources Operated (Exploration) Bolivia Operated (Exploitation) Non-operated (Exploitation) Madalena Company…
SUMMARY: Argentina Focused Plan Active Argentina Drill Program in 2015 & 2016 Advancing Four Key Resource Plays Loma Montosa oil at Puesto Morales -Initial Success Lower Agrio shale oil at Curamhuele -Completion & Testing Pending…
APPENDICES Drilling Yp.x-1001 (October 2015) on Curamhuele Block, Neuquen, Argentina DECEMBER 2015 25
APPENDIX 1: Experienced Full-Cycle Operating Team MANAGEMENT TEAM BOARD OF DIRECTORS Kevin Shaw, P. Eng., MBA President & CEO Gus Halas Previously Managing Director & Head of Energy Research at a boutique Director of Triangle…
APPENDIX 2: Argentinas Shale Potential June 2013 EIA Released Updated World Shale Oil & Gas Assessment Argentina has 4th largest technically recoverable shale oil resource in the world Behind only Russia, USA & China 3X greater…
APPENDIX 3: Vaca Muerta vs US Shales m 0 250 500 Shale Thickness 750 1,000 Oil Shales Gas Shales Vaca Muerta Shale Vaca Muerta Shale Madalenas Coiron Madalenas Cortadera Shale Comparisons Amargo Area Eagle Ford…
APPENDIX 4: Canadian Assets in West-Central Alberta ALBERTA EDMONTON CALGARY Greater Paddle River Core Area (124 Net Sections of Land) 3 Key Resource Plays for horizontal multi-stage frac operations: GREENCOURT…