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Madalena Comments on Argentine Oil Pricing
Madalena Comments on Argentine Oil Pricing Madalena Comments on Argentine Oil Pric...
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[{"type":"text","content":"\n\n\n\nMadalena Comments on Argentine Oil Pricing\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\nMadalena Comments on Argentine Oil Pricing\nCanada NewsWire\nCALGARY, Jan. 7, 2016\n\n\n\nCALGARY, Jan. 7, 2016 /CNW/ - Madalena Energy Inc. (\"Madalena\" or the \"Company\") (TSXV: MVN and OTCQX: MDLNF) provides the following comments on recent proposed changes to regulated Argentina oil prices and preliminary information on its 2016 Capital Budget.\n\nPREMIUM PRICING RETAINED IN REGULATED ARGENTINA OIL MARKET On November 23, 2015, the Argentine Republic elected a new centre-right government. Consistent with its campaign platform, currency controls were relaxed in December 2015 and the Argentine Peso (\"AR$\") underwent a devaluation to reflect its purchasing power in the global economy.  As outlined in Madalena's news release on December 17, 2015, a large percentage of the Company's costs are denominated in AR$. As a result, the Company's cost to produce a barrel of oil in Argentina is expected to decrease in United States dollar (\"US$\") equivalent terms. \n\nIn discussions with Madalena and other Argentina producers, the regulators in Argentina have advised that 2016 oil pricing is expected to be set at approximately US $67.50 per barrel for Medanito crude quality oil, which maintains a premium to Brent and WTI pricing.  Although the regulators have indicated the US$ 67.50 will be the posted price for the year there can be no certainty that the oil price will not be further adjusted within the year.  For reference, the US$ 67.50 price equals  AR$ 911 per barrel at the current 13.5:1 AR$ to US$ foreign exchange rate,  compared to the early December 2015 posted price of approximately US$ 75.00 per barrel or AR$ 735 per barrel at the previous 9.8:1 foreign exchange rate. \n\nThe Company believes the newly elected federal government is implementing its stated policy of providing a fiscal and regulatory environment that supports development of Argentina's domestic energy resources.\n\nFor reference, the link below provides a grap...