Monday, January 18, 2016

How Madalena Energy is worth $.70 per share


• YPF announced two JV agreements with American Energy Partners to invest US$506 mm total targeting Vaca Muerta shale in Neuquén basin in Argentina

• On Bajada de Anelo block (nearby MVN’s Coiron Amargo block) AEP will initially fund 39.4% of US$447 mm JV pilot to earn 25% interest with option to increase funding to 72.6% to earn 50% W.I.

• Based Bajada de Anelo JV metrics, this would imply MVN’s Coiron Amargo block is valued at ~175 mm ($0.32/sh)

• On Cerro Arena block (nearby MVN’s Cortadera block) AEP will fund 100% of $60 mm JV to earn 45% interest in 92, 665 acre block

• Based on Cerro Arena block JF metrics, this would imply MVN’s Cortadera block is valued at ~$140 mm ($0.26/sh)

• Positive news which shows vote of confidence in Argentina’s newly elected government

The link is to a Facebook page that follows Madalena Energy. If you have an interest in this company I would suggest you follow that page. It is maintained by Maglan Capital which has a large position in the stock. When oil prices come back Argentina is going to be a big winner. Lots of money and expertise flowing into their oil patch even at these depressed prices. 

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