Madalena Ventures Inc. and its wholly owned subsidiary Madalena Austral SA, provide an update on its operations in Argentina.

On the Coiron Amargo Block, the CAS X-2 vertical exploration well in the center of the block has been cased as a potential oil discovery. The well was drilled and cased to a total depth ("TD") of 11,522 feet (3,512 meters). In the Sierras Blancas formation the well encountered a potential gross hydrocarbon column of 70 feet (21 meters). The Vaca Muerta formation interval was found to be 433 feet (132m) thick. Once current operations are completed the drilling rig is expected to move to the northern portion of the block in order to drill two further wells in existing discovered Sierras Blancas pools.

At CAS X-1, flow testing of the Vaca Muerta continues where a survey will be performed to determine the production contribution from each frac stage interval. A large three stage hydraulic fracture stimulation of the Vaca Muerta formation was completed as programmed in January 2012. At CAS X-4, testing has commenced on several horizons below the Vaca Muerta shale formation. At this well location a full diameter core was taken through most of the Vaca Muerta interval which will be used to optimize future wells in the Vaca Muerta formation. A hydraulic fracture stimulation program for the formation will be prepared after extensive laboratory analysis of the core is completed.

Tags: Madalena Ventures Inc.