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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:

"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."

Michael Charlton, Industrial Alliance Securities (5/29/15)
"Madalena Energy Inc. announces its Q1/15 results. . .average production of 3,586 boe/d (78% liquids) was in-line with our forecast. The company's current production is approximately 4,000 boe/d. . .North American technology appears to be working very well to unlock the hydrocarbons from the conventional basins in Argentina, and we believe it will be the key to unlocking the large resource potential in the unconventional plays Madalena is pursuing. . .this truly is dinosaur territory with dino-size prize potential, and we expect 2015 to be a very good year for hunting the Argentinosaurus—it's just going to take a little patience."

Bill Newman, Mackie Research Capital (5/29/15)
"Madalena Energy Inc. reported average Q1/15 production of 3,586 boe/d, which was in-line with our forecast of 3,627 boe/d. Current production has increased to approximately 4,000 boe/d. Q1/15 cash flow of CA$6.0M (CA$0.01 per fully diluted share) was higher than our forecast of CA$4.2M (CA$0.01 per fully diluted share) due to a higher realized oil price. . .the recently drilled Loma Montosa and Sierras Blancas wells continue to exceed expectations. The new debt facility provides additional financial flexibility."

Darrell Bishop, Haywood Securities (5/29/15)
"Madalena Energy Inc.'s Q1/15 production of 3,586 boe/d was in line with our 3,545 boe/d estimate and consensus of 3,620 boe/d. Funds flow from operations came in at $6M ($0.01/share) versus our $4.1M ($0.01/share) estimate and consensus. . .we continue to view the company as an Argentina sum-of-the-parts story and see value being created over time as Madalena delineates and derisks its vast unconventional resource potential."

Bill Newman, Mackie Research Capital (4/28/15)
"Last week, Madalena Energy Inc. hosted an investor tour of its operations in Argentina. . .given the desire of all the leading presidential candidates to increase foreign investment into the oil and gas sector and return Argentina to energy self-sufficiency, the mid- to long-term outlook for the sector appears positive. . .the company will continue to focus on the appraisal of the Vaca Muerta, Agrio, Loma Montosa and Mulichinco resource plays."

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