TSX-V: MVN OTCQX: MDLNF CORPORATE PRESENTATION MAY 2019
NOROESTE BASIN Overview Madalena holds properties in four provinces in Argentina where it has a dual prong strategy with a non-operated strategy in the Vaca Muerta and Lower Agrio plays, and an operated strategy to grow its conventional…
Our Vision Madalena's vision is to create value through the generation of a balanced portfolio of high-quality oil and gas assets. We are efficiently growing our conventional production in Argentina in proven hydrocarbon areas…
Why Invest in Madalena Balanced Asset Portfolio: Share Price1 (CDN/sh) 0.13 Cash flow positive conventional production Shares Outstanding1 (MM) 544.1 Large upside potential from multiple unconventional concessions Market Cap (CDNMM)…
Value Creation Principles Regional Geographic Focus Focus on Known Basins Overlooked Assets Low Entry Cost High Working Interests Focus on those areas in Increase prospectivity by being on Establish significant upside potential…
Growth Plan Targeting rapid and efficient production growth through diversified assets well suited to Madalena management. Proven, Lean, and Financial Footing Regained Efficient and Rapid Growth Focused Management and Improving…
Execution 2018 Acquisition of Additional Producing Assets: Reduction of Commitments Identify conventional drilling prospect - Lotena Formation, Coiron Amargo Norte Complete acquisition of additional production asset(s) - 100%…
Track Record and Commitment Experienced Management Team Long-term History in International Oil Development: Management has previous experience at Hispania Petroleum S.A. Hispania is a private, family-owned energy company that has…
Focus on Argentina Focused small-to-mid-cap exposure in Argentina World-class Oil and Gas Resource: Attractive Investment Environment: Demonstrated by presence of super-majors and Gradualist economic and fiscal policies yielding mixed…
Reserves1 Growing Liquids Reserves Volumes and Value Year-End Gross Reserves (mmBOE) After-Tax NPV10 (USmm) Year-End Gross Reserves (mmBOE) Up 47% Up 42% Up 33% Up 24% Up 34% Up 47% 1Net to Madalenas working…
Redesign in Progress Production and Guidance Any updates to data Production to grow with US38 million CAPEX budget Diversified Across Two Basins Mainly Operated for 2019 75% for development drilling and related activities…
Cost Reductions Supporting Strong Netbacks Company G&A was reduced from 3 million in Q2 2017 to average 1.7 million for last four quarters - 43% reduction TSX-V: MVN OTCQX: MDLNF 13
Assets Overview Multiple Blocks in Two Basins Block W.I. Operator Net Acres Province/Basin Valle Morado1 97% Madalena 47,425 Salta/Noroeste Santa Victoria1 100% Madalena 516,846 Salta/Noroeste El Chivil 100% Madalena 30,394…
Why Argentina Argentinas Shale Potential EIA world shale oil and gas assessment Argentina has the 4th largest technically recoverable shale oil resource in the world Behind only Russia, USA and China 3X greater than…
Why Argentina Argentina has second largest technically recoverable shale gas resource in the world Behind only China 1.2X greater than USA 1.4X greater than Canada TSX-V: MVN OTCQX: MDLNF 16
Vaca Muerta Exposure to one of the Worlds Largest Shale Plays1 Curamhuele Curamhuele Exposure to one of the Worlds Largest Shale Plays1 Thickness generally ranging from 100 metres to 500+ metres Progressively deeper & thicker…
Vaca Muerta Shale Play Trends Replicating Early US Shale Growth Rates Gas Mcf/d Oil bbl/dd Rapidly Rising Production Non-conventional production growth 2018 Oil Natural Gas +151% +292% TSX-V: MVN OTCQX: MDLNF 18
Vaca Muerta Vista Bajada Del Palo - Bajada del Palo Oeste 4 wells 2500 Recent Developments in Southern Neuquen m lateral length started production Wintershall - Aguada Federal - Dec. 23, 2015 (Wintershall website) Shell - Cruz de…
Coiron Amargo Vaca Muerta Oil Sweet Spot Position Coiron Amargo Sur Este (CASE): Operated by Pan American Energy (PAE) Prime Vaca Muerta acreage; Multi-well drilling and fracking program starting in 2019 PAE is owned by Bridas and…
Vaca Muerta Shale Core Area CASE and Area Well Results CAS.x-14 is performing roughly in line with expectations CAS.x-14 (CASE block, Madalena 35% W.I.) was completed in March 2018 with a 60-stage 500 hydraulic stimulation of a…
Coiron Amargo Resource Report Summary1 GLJ Resource Report effective Dec. 31, 2017 136 MMboe net unrisked recoverable contingent resources (93% Oil) 160 acres/well spacing unit 82.5% Development Efficiency 1,456 Million NPV10% Net…
Coiron Amargo Resource Report Summary1 PAE 40 mm loan capacity would cover a majority of cash required to reach free cash flow positive under this rapid development scenario. Avg Net Daily Production (Mbbl/d) (Target) Cash Flow…
Curamhuele Exploration Block Stacked Resource Pays Chevron Offset Activity: Filo Morado Ch.x-1 Chevron is planning an 8 well appraisal program in 2018 El Trapial Yp.x-1 &Yp.x-1001 in El Trapial adjacent to Curamhuele with an…
Lotena Formation Offset Production Aguada del Chaar Gas Cumulative 3,236 MMcf Bajada del Palo Gas Cumulative 44,751 MMcf Offset Drilling Moving Towards Coiron Amargo Norte Block (Madalena 35% W.I.) Madalena management…
Noroeste Bason Operated Conventional Production Palmar Largo (100% Operated - Oil Producing): 17 wells have cumulative production of 45 MMBbls Surubi (85% Operated Oil Producing): Proa-2 well has produced 1.5 MM Bbls in 5 years…
Management Team Jose D. Peafiel - CEO Alejandro A Peafiel VP Ezequiel Martinez Ariet - CFO Growth and Capital Mr. Penafiel previously managed Hispania An Accountancy graduate from Salvador Petroleum and its predecessor for 10…
Board of Directors Gus Halas Director and Chairman Mr. Halas is currently a director of Triangle Petroleum Corporation, Optimize RX and School Speciality Inc. Previously, Mr. Halas was Chief Executive Officer and President of Central…
Thank You CORPORATE PRESENTATION MAY 2019 29 TSX-V: MVN OTCQX: MDLNF
Advisories Barrels of Oil Equivalent All calculations converting natural gas to barrels of oil equivalent (boe) have been made using a conversion ratio of six thousand cubic feet (six Mcf) of natural gas to one barrel of oil, unless…
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