Madalena Energy Reports Oil Discovery at Argentina's Lower Agrio Shale

Madalena Energy Inc. (TSXV:MVN,OTCQX:MDLNF) announced the initial results from its completion and testing of the Lower Agrio shale formation, located on its 90-percent working interest in the Argentina-based Curamhuele block.
As quoted in the press release:

• Successfully completed the vertical exploration well (Yapai.x-1001) with four hydraulic fractures at depths of 3,731, 3,647, 3,566 and 3,457 metres, the upper three intervals being within the Lower Agrio shale and the lowest interval containing both the Lower Agrio shale and Mulichinco tight sand formations;
• All four frac intervals are believed to have penetrated the primary target in the Lower Agrio shale;
• Pumped an aggregate of approximately 430,000 pounds of sand and 13,700 barrels of frac water over four days;
• Flowed back on controlled choke settings (3 mm to 8 mm) over eight days a total of 1,609 Bbls of oil and 5,444 Bbls of water;
• Flowed at 408 Boe/d over last 24 hours on a 9.5 mm choke, comprised of 350 Bbls/d oil, 389 Bbl/d water (47% oil cut) and 350 mcf/d of gas at a flowing pressure of 1,050 psi;
• The oil is light sweet oil with a field estimated gravity of 40 API;
• Recovered approximately 40% of the hydraulic fracture fluid to date; and
• Continued to record an increase in the oil cut and a corresponding decrease in the water percentage throughout the test.

Kevin Shaw, president and CEO of Madalena Energy, commented:

We are extremely pleased with the results from this vertical exploration well at Curamhuele and oil discovery in the Lower Agrio shale. Ultimately this Lower Agrio shale play, like the Vaca Muerta shale, will be developed with Horizontal Multi frac wells which are expected to yield considerably more than a typical vertical well.

Click here to read the full Madalena Energy Inc. (TSXV:MVN,OTCQX:MDLNF) press release.