(All dollar figures are expressed in
United States Dollars)
CALGARY, Jan. 17, 2017 /CNW/ - Madalena Energy Inc.
("Madalena" or the "Company") (TSXV: MVN and OTCQX: MDLNF) has been
advised that a majority of producers and refiners in Argentina, at the request of the government,
have signed a 2017 Medanito crude oil pricing agreement (the
"Agreement") allowing for convergence with international Brent
pricing over the coming months. International Brent oil prices have
been trading at approximately $55.00
per barrel to date in 2017.
A summary of Medanito monthly crude oil pricing for 2017 is as
follows:
2017
|
$/Bbl
|
January
|
$59.40
|
February
|
$58.70
|
March
|
$57.90
|
April
|
$57.20
|
May
|
$56.50
|
June
|
$55.70
|
July –
December
|
$55.00
|
Further, the Agreement outlines that should international Brent
pricing be reached and remain higher than $1.00 above the monthly Medanito floor price for
10 consecutive days, the Agreement will be suspended and
international Brent pricing adopted. Should international Brent
pricing fall below $45.00 for 10
consecutive days, the Agreement will be reviewed.
For the first nine months of 2016 Madalena realized an average
oil price of $62.10 per barrel which
incorporated an average discount from the Medanito benchmark of
approximately $5.00 per barrel.
In the fourth quarter of 2016, Madalena expects to realize an
average oil price of approximately $54.00 per barrel.
About Madalena Energy
Madalena is an independent,
Canadian headquartered, Argentina
focused upstream oil and gas company with operations in four
provinces of Argentina where it is
focused on the delineation of unconventional resources in the Vaca
Muerta shale, Lower Agrio shale and Loma
Montosa oil plays. The Company is implementing horizontal
drilling and completions technology to develop both its
conventional and resource plays.
Madalena trades on the TSX Venture Exchange under the symbol MVN
and on the OTCQX under the symbol MDLNF.
Reader Advisories
Forward Looking Information
The information in this news release contains certain
forward-looking statements. These statements relate to future
events or our future performance, in particular, but not
limited to, with respect to matters related to commodity
pricing. All statements other than statements of historical
fact may be forward-looking statements. Forward-looking statements
are often, but not always, identified by the use of words such as
"seek", "anticipate", "plan", "continue", "estimate",
"approximate", "expect", "may", "will", "project", "predict",
"potential", "targeting", "intend", "could", "might", "should",
"believe", "would" and similar expressions. These statements
involve substantial known and unknown risks and uncertainties,
certain of which are beyond the Company's control, including: the
impact of general economic conditions; industry conditions; changes
in laws and regulations including the adoption of new environmental
laws and regulations and changes in how they are interpreted and
enforced; fluctuations in commodity prices and foreign exchange and
interest rates; stock market volatility and market valuations;
volatility in market prices for oil and natural gas; liabilities
inherent in oil and natural gas operations; uncertainties
associated with estimating oil and natural gas reserves;
competition for, among other things, capital, acquisitions, of
reserves, undeveloped lands and skilled personnel; incorrect
assessments of the value of acquisitions; changes in income tax
laws or changes in tax laws and incentive programs relating to the
oil and gas industry; geological, technical, drilling and
processing problems and other difficulties in producing petroleum
reserves; and obtaining required approvals of regulatory
authorities. The Company's actual results, performance or
achievement could differ materially from those expressed in, or
implied by, such forward-looking statements and, accordingly, no
assurances can be given that any of the events anticipated by the
forward-looking statements will transpire or occur or, if any of
them do, what benefits the Company will derive from them. These
statements are subject to certain risks and uncertainties and may
be based on assumptions that could cause actual results to differ
materially from those anticipated or implied in the forward-looking
statements. The forward-looking statements in this news release are
expressly qualified in their entirety by this cautionary statement.
Except as required by law, the Company undertakes no obligation to
publicly update or revise any forward-looking statements. Investors
are encouraged to review and consider the additional risk factors
set forth in the Company's Annual Information Form, which is
available on SEDAR at www.sedar.com.
Neither the TSX Venture Exchange nor its Regulation Service
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Madalena Energy Inc.