(All dollar figures are expressed in
United States Dollars, unless
otherwise noted)
CALGARY, Dec. 20, 2016 /CNW/ - Madalena Energy Inc.
("Madalena" or the "Company") (TSXV: MVN and OTCQX: MDLNF)
announces that it has sold its CAD $3
million convertible debenture (the "Convertible Debenture")
of Point Loma Resources Ltd. (TSXV: PLX) ("Point Loma") for cash
proceeds of $522,000 (CAD
$700,000). The Convertible Debenture
was part of the consideration Madalena received when the non-core
Canadian assets were sold effective May 1,
2016. The carrying value of the Convertible Debenture at
September 30, 2016 was $1.9 million (CAD $2.6
million).
The balance of the consideration Madalena received for its
Canadian assets was 6,244,814 common shares of Point Loma, 10% of
which are currently free trading. The balance of the shares is
escrowed and will be released at six month intervals commencing
December 30, 2016. The carrying value
of the Point Loma common shares at September
30, 2016 was $1.9 million (CAD
$2.5 million).
The Company, as previously disclosed, has been experiencing
liquidity challenges. The transaction at Coiron Amago Sur Este,
which was announced on December 7,
2016, will, when closed, provide significant assistance to
addressing the liquidity and working capital challenges the Company
has been facing. Proceeds from the sale of the Convertible
Debenture will also assist in this process.
About Madalena Energy
Madalena is an independent, Canadian headquartered, Argentina focused upstream oil and gas company
with operations in four provinces of Argentina where it is focused on the
delineation of unconventional resources in the Vaca Muerta shale,
Lower Agrio shale and Loma Montosa
oil plays. The Company is implementing horizontal drilling and
completions technology to develop both its conventional and
resource plays.
Madalena trades on the TSX Venture Exchange under the symbol MVN
and on the OTCQX under the symbol MDLNF.
Neither the TSX Venture Exchange nor its Regulation Service
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Reader Advisories
Forward Looking Information
The information in this news release contains certain
forward-looking statements. These statements relate to future
events or our future performance, in particular, but not limited
to, with respect to matters related to addressing the Corporation's
liquidity challenges. All statements other than statements of
historical fact may be forward-looking statements. Forward-looking
statements are often, but not always, identified by the use of
words such as "seek", "anticipate", "plan", "continue", "estimate",
"approximate", "expect", "may", "will", "project", "predict",
"potential", "targeting", "intend", "could", "might", "should",
"believe", "would" and similar expressions. These statements
involve substantial known and unknown risks and uncertainties,
certain of which are beyond the Company's control, including: the
impact of general economic conditions; industry conditions; changes
in laws and regulations including the adoption of new environmental
laws and regulations and changes in how they are interpreted and
enforced; fluctuations in commodity prices and foreign exchange and
interest rates; stock market volatility and market valuations;
volatility in market prices for oil and natural gas; liabilities
inherent in oil and natural gas operations; uncertainties
associated with estimating oil and natural gas reserves;
competition for, among other things, capital, acquisitions, of
reserves, undeveloped lands and skilled personnel; incorrect
assessments of the value of acquisitions; changes in income tax
laws or changes in tax laws and incentive programs relating to the
oil and gas industry; geological, technical, drilling and
processing problems and other difficulties in producing petroleum
reserves; and obtaining required approvals of regulatory
authorities. The Company's actual results, performance or
achievement could differ materially from those expressed in, or
implied by, such forward-looking statements and, accordingly, no
assurances can be given that any of the events anticipated by the
forward-looking statements will transpire or occur or, if any of
them do, what benefits the Company will derive from them. These
statements are subject to certain risks and uncertainties and may
be based on assumptions that could cause actual results to differ
materially from those anticipated or implied in the forward-looking
statements. The forward-looking statements in this news release are
expressly qualified in their entirety by this cautionary statement.
Except as required by law, the Company undertakes no obligation to
publicly update or revise any forward-looking statements. Investors
are encouraged to review and consider the additional risk factors
set forth in the Company's Annual Information Form, which is
available on SEDAR at www.sedar.com.
SOURCE Madalena Energy Inc.
