Madalena Energy Inc. announce its financial and operating results for the three months ended June 30, 2019.

Madalena’s CEO Jose Penafiel commented: 
"We are pleased with progress on our CASE horizontal drilling program with our partner, Pan American Energy. We are also happy to announce that an additional well has been added to the 4 well drilling program for a total of 5 horizontal wells that will further delineate the potential of the CASE block. Preparation for and commencement of this important drilling and completions program is the main reason why our capital expenditures increased to $2.7 million in the second quarter as activity increased in CASE.”

Production

July production was approximately 2,000 barrels of oil equivalent ("boe/d") (86% crude oil) before royalties, in line with most recent corporate guidance and little changed from 2,010 boe/d in the second quarter of 2019. 

Operational Activities – Vaca Muerta Drilling Commenced in CASE

Coiron Amargo Sur Este (CASE); 35% non-operated
The first well of the previously announced four well drilling program (CASE-101h) has been successfully drilled and completed. A 2000m lateral has been drilled and completed in the Vaca Muerta formation in 47 days versus 54 days planned in the drilling prognosis. Flowback of the well started August 8 and is currently in progress. A fifth well has been added to the current campaign. Drilling operations of the second well (CASE-501h) are ongoing, the vertical section has been drilled, cased and cemented and drilling of the horizontal section has started.

As previously described, well locations have been selected to confirm and improve on the results obtained from two previously drilled and completed wells, as well as to further delineate the continuity of productive potential in the Vaca Muerta across specific targeted areas of the CASE block to optimize the development program.

Palmar Largo and El Surubi
The company is currently reviewing Workover candidates in Palmar Largo with updated information recently received from the previous operator. A preliminary review shows that better candidates than the originally selected well could exist.

Curamhuele (90% operated)
As previously described, the company received approval for a 2 year extension on the Curamhuele concession based on its proposal to drill one vertical well in a new location to vertically test the Vaca Muerta and Lower Agrio formations, which extended the exploratory period of the concession by an additional twenty four months, expiring on March 9th, 2021.

The company is moving forward with drilling planning activities to drill the vertical well to test Vaca Muerta and Lower Agrio formations to fulfill the commitments in 2020.

Rinconada – Puesto Morales (100% operated)
One Vertical Exploratory Well is planned for the second half of 2019. Madalena has defined an Exploratory Well location in Puesto Morales South targeting a new Sierras Blancas Formation structural prospect, with the Loma Montosa Formation as secondary target. Additionally, the company is reviewing producing wells for workover opportunities in the Loma Montosa Formation.