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Monday, 26 August 2013
Madalena Energy posts 10-fold increase in revenue as production increases x15
Calgary-based oil and gas producer Madalena Energy(CVE:MVN) posted a spike in second quarter revenues Monday as the company enjoys the fruits of expanded production.
For the three months to June 30, revenue for the company formerly known as Madalena Ventures Inc., which changed its name to Madalena Energy Inc. in August 2013, was recorded as coming in at $3.87 million, well above the $374,000 recorded a year ago.
Net loss, meanwhile, narrowed to $320, 000, for breakeven earnings per share in comparison with the year ago loss of $1.85 million for a loss of a penny per share.
The company, with a strong balance sheet composed of working capital of $7.7 million at quarter-end and an unutilized credit facility of $13 million, said average daily production in the quarter came to 1,020 barrels of oil equivalent per day (boe/d), compared to the 66 boe/d recorded in the equivalent period a year ago. Of this latest figure, 297 boe/d was crude oil and condensate output.
Operating netbacks, a key measure in the oil and gas industry, climbed to $13.72 per barrel of oil equivalent (boe), $9.57 per boe in the first quarter of 2012.
Post Q2, the mining junior supplemented its existing working capital with a $7.25 million equity financing that closed in early July 2013.
At the company's domestic operations in the Greater Paddle River Area of Alberta, the company said two 100 per cent working interest Ostracod horizontal oil wells were equipped with the solution gas tied-in to existing Madalena facilities. These wells produced at restricted rates during the second quarter pending completion of a pipeline twinning project and third party compression upgrades that are currently in the final stages of completion to accommodate increased volumes from these wells and future horizontal development wells in the area.
The Canadian upstream oil and gas company’s assets in Argentina, where it holds three large blocks within the prolific Neuquén Basin, also reported progress in the quarter, with the exploration period for Madalena's 90 per cent working interest Curamhuele block was extended by way of an official decree signed by the Province of Neuquén in June, a one year extension that allows the company until November 8, 2014 to satisfy the remaining work commitments of approximately US $13.8 million plus VAT on the block providing the Company enhanced financial flexibility.
Operational activities at Coiron Amargo block, another of Madalena's Argentinean assets included the shooting of two 3D seismic programs at Coiron Amargo Sur (south portion of the block), meaning both north and south regions of the Coiron Amargo block have extensive 3D seismic coverage.
Work continued on construction of three surface facility components at Coiron Amargo Norte which are anticipated to reduce future operating costs, conserve all produced solution gas and provide the facility operating capacity to bring on additional volumes from planned drilling targeting light oil in both the Vaca Muerta shale and Sierras Blancas formations in 2013 and beyond.
Shares in the junior were trading at 39 cents per share the trading day before the release of figures.