Friday, February 6, 2015

I'm getting back into Madalena Ventures

This is the Canadian junior oil and gas exploration and production company that has a very large land package in Argentina's Vaca Muerta shale play. I owned it a while back but got stopped out when oil collapsed. However, I think we are near the bottom for oil prices. it will probably take a while for oil prices to recover but they will recover. The rig count in the US continues to fall and that will lead to lower oil production. That will bring supply and demand back into balance. One thing Madalena has going for it is that Argentina has a regulated price on oil produced so they are getting around $75 per barrel. The company has stopped all activity in Canada and is focusing totally on Argentina. What I really like is that their property is surrounded by super majors who continue to drill and raise, by proxy, the value of Madalena's land package. This is definitely speculative but if the oil price recovers over the the next 12-18 months this stock will be a beneficiary. It definitely has blue sky potential as the Argentina shale play is proved up over time.

link to most recent corporate presentation

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