Head Office: MADALENA ENERGY INC. Suite 200, 707 - 7th Avenue SW Madalena Calgary, Alberta, Canada T2P 3H6 International Office: e n e r g y MADALENA ENERGY S.A. 1209 Posadas, 5th Floor inc. Buenos Aires, ARG C1011ABE…
READER ADVISORIES APRIL 2014 3
READER ADVISORIES DEFINITIONS: Contingent resources Definition: Those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under…
EXPERIENCED FULL-CYCLE OPERATING TEAM MANAGEMENT TEAM Kevin Shaw, P. Eng., MBA President & CEO Ruy Riavitz Argentina Country Manager Previously Managing Director & Head of Energy Research, Casimir Capital, Previously E&P Manager,…
MADALENA: Corporate Highlights Market capitalization 260 mm (as at Mar. 28, 2014); Shares outstanding (Basic) 397 mm Strong Balance Sheet: Positive Working Capital, zero debt and Undrawn 13.0 mm debt facility Q3-2013 production…
RYDER SCOTT: Unconventional Resource Report Highlights Ryder Scott conducted a resource evaluation across three of Unlocking the International Prize Madalenas blocks in the Neuquen NET CONTINGENT RESOURCES (P50 -Best Estimate)…
INTERNATIONAL ASSETS: Neuqun Basin, Argentina 3 Large Land Blocks (132,200 net Acres) Activity to date has been mainly focused at Coiron Amargo Conventional light oil (Sierras Blancas) Unconventional shale oil (Vaca Muerta)…
VACA MUERTA SHALE All Three Blocks Vaca Muerta Shale: Thickness 500m Progressively deeper & thicker from east to west in the basin Thickness 1000m with the inclusion of the overlying Quintuco Madalena expects that the Vaca Muerta is…
VACA MUERTA VS US SHALES: Comparison 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…
LOWER AGRIO SHALE: Curamhuele & Cortadera 225 meter thick shale within the oil generation window on the Curamhuele block Lower Agrio flowed 150 bopd without stimulation/frac at CH.x-1 Horizontal multi-stage frac potential…
MULICHINCO TIGHT SANDSTONE: Curamhuele & Cortadera YP.x-1 Mulichinco tested 10 mmcf/d + Correlation 0 A PI 200 0.2 2000 0.450 -0.150 -100 MV 50 0.2 2000 1908 KG/MT 2898 500 bpd of 51 API condensate 6 IN 16 0.2 2000 450…
BLOCK 1: COIRON AMARGO Recent Developments Feb. 7, 2012 (Reuters): YPF discovers 1 billion Boe at Loma La Lata Petrobras Argentina / Total SA announce new Vaca Muerta over 428 km2 area (5.6 MMboe/section) in the Vaca Muerta shale…
BLOCK 1: COIRON AMARGO NORTE Applying Horizontal Technology to Sierras Blancas Oil Sierras Blancas - 8 Horizontal Wells Average Production Coiron Amargo Area Offsetting Horizontals 800 700 Best Well- IP 700 bopd Year 1: 450 bopd…
BLOCK 2: CURAMHUELE Overview EL TRAPIAL (CHEVRON) Madalena Operated 90% W.I. -ET.x-2006 (Vaca Muerta) -Drilled in 2013 -Indicated to be capable of significant liquids in 56,216 gross (50,595 net) acres and gas production 56,216…
BLOCK 3: CORTADERA Overview Madalena 37.8% W.I. & Partnered w/ in 123,503 gross (46,657 net) acres Recent multi-year block extension executed CorS.X-1 deep test cased to 4,500m for unconventional shale and tight sandstone gas…
DOMESTIC ASSETS: Alberta, Canada Greater Paddle River Core Area (150 Net Sections of Land) Key Resource Plays undergoing horizontal multi-stage frac operations: Ostracod -Development - 58 net sections -Oil Nordegg -Emerging - 145…
GREATER PADDLE RIVER CORE AREA: Strategically Focused GREENCOURT ALBERTA MAHASKA LEAMAN NITON PADDLE RIVER WILDWOOD WEST COVE EDMONTON BIGORAY 6 miles CALGARY Madalena Lands 200 Gross Sections Multiple…
OSTRACOD OIL: Type Well Economics TYPE CURVE ASSUMPTIONS Capital cost (M) 3,500 EUR (Mboe) 302 F&D cost (/boe) 11.61 Netback (/boe) 36.85 Recycle ratio 3.15x IP30 (Sales boe/d) 377 GOR (scf/bbl) 8600 NPV10% (M) 3,176 IRR 84%…
NORDEGG OIL & LIQUIDS-RICH GAS: Emerging Resource Play Depth to Nordegg GREENCOURT Madalena Lands Nordegg Rights PADDLE RIVER LEAMAN 182 Gross Secs. 80% Avg. W.I. Wildwood 15-12 Horizontal WILDWOOD 145 Net Secs.…
MADALENA (MVN TSX-V) Activity & Catalysts for Growth Argentina Assets Coiron Amargo, Curamhuele & Cortadera Blocks Argentina strategy to grow production, reserves and cash flow. Continue to delineate unconventional resources.…
APPENDIX 1: EIA - 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…