Madalena International Operations Update; Fell 9%, Closer To Yr Lows Monday
Madalena Ventures Inc. (MVN.V), which fell 9% and closer to year lows Monday, provided an update on its drilling operations in the Neuquen basin, Argentina.
On the Coiron Amargo Block (35% working interest), the CAN-8 development well located 800 meters south east of the existing CAN 7 oil producer on the northern portion of the block (i.e. Coiron Amargo Norte), has been cased to a total depth of 10,433 feet. Following the successful drilling of the CAN-8 location and a review of the well data gathered (including electric logs), oil and gas has been encountered in both the unconventional Vaca Muerta shale and the conventional Sierras Blancas zones of interest. The Vaca Muerta formation interval encountered by the well was approximately 340 feet (or 104 meters) thick and in the Sierras Blancas formation the well encountered an approximate gross hydrocarbon column of 98 feet (or 30 meters). Completion and testing in the Sierras Blancas formation is expected to commence in early 2013. Upon a successful test, the CAN-8 location is expected to be tied-in and placed on production in Q1 2013.
The drilling rig is now moving to the southern portion of the block (i.e. Coiron Amargo Sur) to drill the CAS X-5 exploration well which is located on the west side of the block approximately 10km west of the CAS X-2 location. The CAS X-5 location is also near an older well on the block which reported recovery of an estimated 6 m3 (or 38 bbls) of 38 degree API crude oil during a 6 hour drill stem test within the Vaca Muerta shale formation. This vertical well is scheduled to be drilled to 11,150 feet in depth and has objectives to both, further delineate the unconventional Vaca Muerta shale in the south-west portion of the block and target the conventional Sierras Blancas horizon. The CAS X-5 well is expected to reach total depth in January 2013.
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