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Madalena Energy Inc.

Madalena Energy Inc. is an independent, Canada-based, international and domestic upstream oil and gas company whose main business activities include development, exploration and production from conventional and unconventional resources (large-in-place shale and tight sands). The company's strategy is to create value and provide superior returns to its shareholders through the generation of a balanced portfolio of high quality oil and gas assets in proven hydrocarbon areas characterized by competitive fiscal terms and significant development potential.

Expert Comments:

Michael Charlton, Industrial Alliance Securities (8/27/15)
"Madalena Energy Inc.'s Q2/15 average production of 3,997 boe/d, an 11% sequential increase, was in line with our forecast of 3,947 boe/d. . .overall, the company realized an average price of $83.50/boe, a 12% sequential increase over Q1/15. . .we believe Madalena remains very attractive and should garner more attention given that it receives regulated prices for its oil and gas production, ensuring that development continues."

Bill Newman, Mackie Research Capital (8/27/15)
"Madalena Energy Inc. reported average Q2/15 production of 3,996 boe/d, which was in-line with our forecast of 4,000 boe/d. The company expects Q3/15 production to decrease to an average 3,550 boe/d due to natural production declines. Production should recover in Q4/15 with additions from a three horizontal well Sierras Blancas program currently underway. . .the crude oil price in Argentina remains at a substantial premium to world prices, which is helping to support cash flow."

Darrell Bishop, Haywood Securities (8/27/15)
"Overall, we view Madalena Energy Inc.'s Q2/15 results as neutral to the shares. . .with regulated prices in Argentina currently fixed at ~90% higher than West Texas Intermediate, we believe the company offers the lowest near-term oil price risk among Canadian listed oil producers, especially small caps. . .we see Madalena as having the ability to advance delineation/exploration activity across its key Argentina plays into 2016."

David Dudlyke, Dundee Capital Markets (8/26/15)
"Madalena Energy Inc.'s Q2/15 production of 3,996 boe/d was in-line with our estimates (4,000 boe/d), marking an 11% increase quarter-over-quarter due to strong results from the recent Loma Montosa horizontal well. . .Argentina's Parliament has ratified a 10-year exploitation agreement for the Puesto Morales area, marking a key milestone for the company as the block represents approximately 44% of Q2/15 production."

"2014 was a transformational year for Madalena Energy Inc., after it acquired Gran Tierra Energy's assets in Argentina. The transaction was accretive on most metrics, and substantially increased Madalena's opportunity base. More importantly, the acquisition increased Madalena's production to approximately 4,000 boe/d. That production base provides a good cash flow base to fund operations. . .the key focus in 2015 is on appraising four different, potential, large resource plays in Argentina. The four resource plays are the Vaca Muerta and Agrio shales, and the Mulichinco and Loma Montosa tight sands. Earlier this year, Madalena completed a highly successful test of the Loma Montosa formation on the Puesto Morales block. The horizontal well was completed with 12-stage, ball-drop, fracture stimulation, which was a first for Argentina. The well initially flowed at 860 boe/d and the longer-term tests are encouraging. Madalena holds a 100% interest in the 31,000-acre the Puesto Morales block, and also a 100% interest in the Puesto Morales facilities, so if the company can repeat its success with the Loma Montosa, we see a lot of potential production additions in 2016 from this one play." read more >

David Dudlyke, Dundee Capital Markets (6/1/15)
"Madalena Energy Inc.'s Q1/15 production of 3,586 boe/d beat our estimates by 10% (DCM: 3,250 boe/d) due to strong results from the most recent Loma Montosa HZ well (IP30 570 boe/d). Operating cashflow of $5.1M also beat our $3.1M estimate due to higher sales volumes, and the company exited the quarter with positive working capital of $3.2M."

More Expert Comments

Experts Commenting on This Company

Darrell Bishop, Analyst – Haywood Securities
Michael Charlton, Analyst – Industrial Alliance Securities
David Dudlyke, Analyst – Dundee Capital Markets
Etienne Moshevich, Editor Alphastox.com
Bill Newman, Senior Analyst, Energy – Mackie Research Capital
Geoff Ready, Vice President, Senior Analyst – Dundee Capital Markets

The information provided above is from analysts, newsletters and other contributors. Please contact the company and visit its website before making an investment decision.
Investing Highlights
 
Prime Acreage Positions Across World Class Unconventional Resources in the Vaca Muerta Shale and Agrio Shale with ~35 Billion Barrels of oil equivalent of net In-Place Petroleum
 
Applying Horizontal technology Internationally across multiple Large-in Place Resource Plays
 
Premium Argentina E&P Player with an Experienced Full Cycle Team and a balanced portfolio of assets including large acreage positions (and production operations) across both prolific conventional and unconventional plays
catalyst Calendar
Q2
2015
Focused on large-in-place international plays, Madalena is drilling four strategic, company making p
Q3
2015
Building on its 2014 success, Madalena is also horizontal developing Sierras Blancas light oil with
Madalena Energy Inc. Content