Madalena Ventures Inc. (the "Company" or "Madalena") is pleased to provide information on the Company's unconventional shale resources on its three land blocks within the Neuquen basin, Argentina. These resources were evaluated by Ryder Scott Petroleum Consultants Ltd. ("Ryder Scott") in a report dated effective December 31, 2012 (the "Resource Report"). All of the Company's international properties, which are located within the Neuquen basin, Argentina, were reviewed in the Resource Report although not all of the potential resources and formations were evaluated. All values disclosed herein are net to Madalena's interest.
Highlights
- Madalena holds 135,000 net acres on the Coiron Amargo (35,027 net acres), Curamhuele (50,400 net acres) and Cortadera (49,600 net acres) blocks within the Neuquen basin, respectively;
- The main zones of interest for the independent resource evaluation focused on the Vaca Muerta shale, Lower Agrio shale and Basal Quintuco with the evaluated resources based on data from 19 delineation and discovery wells on the blocks, 3D or 2D seismic coverage and core analysis.
The following are summary results of the independent evaluation completed by Ryder Scott for all three blocks held by Madalena. A further breakdown (by block) of the petroleum initially in place and potential recoverable resources are shown in a series of tables that follow.
- Best Case P50 total petroleum initially in place ("PIIP") of 34.8 billion barrels of oil equivalent (“boe”) (51 % crude oil and natural gas liquids ("NGLs")), comprised of:
- Best Case P50 discovered PIIP ("DPIIP") of 257.4 million boe (95 % crude oil and NGLs); and
-Best Case P50 undiscovered PIIP ("UPIIP") of 34.6 billion boe (50 % crude oil and NGLs);
- Best case P50 contingent plus prospective recoverable resources of 2.9 billion boe (45 % crude oil and NGLs), comprised of:
- Best case P50 contingent recoverable resources of 19.4 million boe (95 % crude oil and NGLs); and
- Best case P50 prospective recoverable resources of 2.8 billion boe (45 % crude oil and NGLs).
Disclosure of Resources
The Resource Report has been prepared in accordance with the standards contained in the Canadian Oil and Gas Evaluation Handbook (the "COGE Handbook") and National Instrument 51- 101 – Standards for Disclosure for Oil and Gas Activities of the Canadian Securities Administrators ("NI 51-101"). The Resource Report provides a summary of the oil, liquids & natural gas resources associated with Madalena's assets and properties in the Neuquen basin, Argentina as at December 31, 2012. Madalena engaged Ryder Scott to provide evaluations of its contingent and prospective recoverable resources over all three of its land blocks in the Neuquen basin with a focus on the Vaca Muerta shale, Lower Agrio shale and Quintuco formations.
The Resource Report is based on certain factual data supplied by the Company and Ryder Scott's opinion of reasonable practice in the industry. The extent and character of ownership and all factual data pertaining to the Corporation's petroleum properties and contracts (except for certain information residing in the public domain) were supplied by the Company to the Ryder Scott and accepted without any further investigation. Ryder Scott accepted this data as presented and neither title searches nor field inspections were conducted. The recovery and resources estimates for Madalena's assets and properties described herein are estimates only and there is no guarantee that the estimated resources will be recovered. The actual resources for Madalena's assets and properties may be greater or less than those calculated.
Ryder Scott has also identified certain contingencies in order to convert the contingent recoverable resources described herein and in the Resource Report into developed reserves. These contingencies are specific to each formation and are related to the maturity of these projects and commercialization contingencies. There are no commercially productive analog fields in this area of the basin to establish expected production rates and recovery efficiencies at this time. There may be risk that accumulations containing contingent resources may not achieve commercial production.
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