Why Madalena Energy is the Oil Company to Watch in 2015

LONDON, November 20, 2014 /PRNewswire/ --

Madalena Energy - A Key International Oil & Gas Player Drilling Four "Company Makers" in 2015 

Nineteen Compelling Reasons why Madalena Energy (TSXV: MVN; OTC: MDLNF) is positioned for triple digit returns  

As an investor looking for torque and multi-bagger potential in the oil and gas industry, there is one company that has secured large acreage positions on prolific conventional and unconventional plays, and has prudently centered its company strategy around a turn in the Argentina energy sector.  

Madalena Energy  (TSXV: MVN; OTC:MDLNF), a growing small-cap international based in Canada,  has assembled approximately 1 million net acres in Argentina alongside over 150 net sections of acreage in Western Canada.  With the company nearing 5000 boe/d (70% oil & NGL's), cash in the bank and no debt, Madalena is entering an exciting 2015 with plans to drill four company making plays.

With a recent New Hydrocarbon Law being passed in Argentina, Madalena is perfectly positioned to significantly increase in value and could see a 50% to 100% gain for investors on an improving Argentina macro picture alone.

Here are nineteen reasons why  Madalena Energy  is positioned for triple digit returns over the next 12 months:

1. The probability of hitting a "home run" is high with a number of company making plays being drilled internationally in 2015 including the Loma Montosa oil resource play, Vaca Muerta shale, Agrio shale, and "Montney-like" liquids-rich Mulichinco.
   
2. Madalena is self-funded with a solid production and cash flow stream to execute the company's strategic business plan.
   
3. There is a massive upside potential with approximately 35 Billion barrels of oil equivalent (boe) of in-place resources across Madalena's unconventional shale positions, driven by the Vaca Muerta and Agrio shale plays. Argentina's two shale basins could end up being the most active outside of the United States, and could even be bigger than the Eagle Ford and Bakken.
   
4. Argentina has an improving energy macro environment. 
   
5. Madalena has prime Vaca Muerta shale acreage in the Neuquen basin. Madalena's Vaca Muerta shale exposure alone could prove to be worth between USD $600 million to over USD $1 billion based on the market valuation for acreage in the surrounding area.
   
6. Madalena is also sitting on prime Agrio shale acreage in the heart of the oil fairway, which offsets a recent discovery by state run company YPF.
   
7. Madalena has an estimated 2.9 billion barrels of oil equivalent (recoverable) assessed to its holdings in Argentina.
   
8. Madalena's lesser known Puesto Morales field (100% WI), which will be drilled in 2015, could be another company maker via a scaleable horizontal resource play across an already delineated, large-in-place oil asset.
   
9. The Sierras Blancas light oil exploitation continues to add production and Madalena has successfully drilled three wells on this play, with plans to drill a fourth before the end of the year.
   
10. Madalena also recorded a recent Nordegg oil & gas discovery in Western Canada, adding a low cost horizontal play into the mix across 140+ net sections.
    
11. There is a focused and experienced management team in place with a seasoned group of oil patch executives on Madalena's board of directors.
    
12. Madalena has laid out an active drilling program through 2015 with an expected three to four drilling rigs to run at different times throughout the year.
    
13. The company has lots of assets and multiple blocks with call options for value enhancement.
    
14. There is a sustainable business plan allowing for unconventional shale delineation activities and high impact horizontal drilling.
    
15. George Soros is making big bets on Argentina and the Vaca Muerta shale. If Soros is correct, Madalena is one of the best ways to gain leverage and torque to the Argentina energy sector.  
    
16. Madalena has much bigger neighbors and could be a prime takeover target as the Argentina energy market picks up steam.
    
17. Strong Financial Position. Madalena expects to end 2014 without any debt, and has sizeable positive working capital and cash in the bank.
    
18. Company valuation is highly attractive at the current trading levels. Investors can get a bargain at the current $0.32/share level as the market is not pricing in high quality acreage positions, nor is pricing inthe company's prime unconventional shale assets or 100% controlled Puesto Morales horizontal resource play.
    
19. Madalena's stock could double over the next 12 months.  

You may have never heard of Madalena, but that is what makes the small company such an intriguing case. It has premier acreage in Argentina and its neighbors have made significant discoveries. Up until now Madalena has flown beneath the radar, but that may soon change as it prepares to drill a number of company makers on big plays in 2015.

By. James Burgess of Oilprice.com

SOURCE Oilprice.com