Sunday, February 28, 2016
Madalena Energy reports 2015 end of year reserves
Argentina Proved plus Probable ("2P") reserves have increased 8% from 8,480 MBoe to 9,134 MBoe
Argentina 2P reserve replacement ratio was 158%
2P BTax NPV 10%, which is primarily supported by the Company's conventional assets, is $175,980,000 or $0.32/share and does not include any material value for the Company's unconventional assets in the Vaca Muerta shale and Lower Agrio shale which are included in the independent resource evaluations
Consolidated oil and liquids now account for 78% of the 2P reserves up from 72% last year
Madalena has shown growth in reserves solely from conventional reserves and this increase does not include any unconventional shale reserves in the Vaca Muerta shale area. As the company and other Vaxa Muerta operators continue to validate the promise of the Vaca Muerta shale we will see further reserve increases and re-rating of Madalena shares and in my view an eventual takeover of the company at a substantial premium to the current price.