Vancouver, British Columbia--(Newsfile Corp. - May 6, 2013) - Investment firm Mackie Research has updated its coverage on Madalena Ventures (TSXV: MVN). Following the release of an independent evaluation of its unconventional shale resources in Argentina, analyst Bill Newman reiterated his buy recommendation, maintaining his target price of $2.15, giving a projected return of 760% from the $0.25 price the day the report was issued.
InvestmentPitch.com has produced a "video news alert" about Madalena Ventures based on this research report. If this link is not enabled, please visit www.InvestmentPitch.com and enter "Madalena" in the search box.
If you cannot view the video above, please visit:
http://www.investmentpitch.com/video/0_ypr0izhj/Mackie-Research--Updates-Coverage-on-Madalena-Ventures-TSXV-MVN
Madalena is an independent, Canadian-based, domestic and international upstream oil and gas company whose main business activities include exploration, development and production of crude oil, natural gas liquids and natural gas.
The independent valuation was based on the company's unconventional shale resources on its three land blocks within the Neuquen basin, Argentina. The report shows a Best Case P50 discovered petroleum initially in place of 257.4 million barrels of oil equivalent, being 95% crude oil and natural gas liquids, with a contingent recoverable resource of 19.4 million boe net. In addition, the report shows a Best Case P50 undiscovered petroleum initially in place of 34.6 billion boe, being 50% crude oil and natural gas liquids, with a prospective recoverable resource of 2.8 billion boe net.
This area is surrounded by major exploration and production companies, including Chevron, Shell, ExxonMobil and Total.
Domestically, Madalena's core area op operations is located in the Greater Paddle River area of west-central Alberta, where the company holds approximately 200 gross, or more than 150 net, sections of land encompassing multiple light oil and liquids-rich gas resource plays.
The company also holds more than 100 net sections (100% W.I.) which are prospective for the Duvernay shale.
Analyst Bill Newman stated, "At the current market price, investors are paying just for Madalena's current conventional production. We continue to believe the real gem is the multibillion BOE resource potential in Argentina."
He also cautions that significant volatility remains in Argentina following the exploration of 51% of YPF's shares from Repsol.
The shares are currently trading at $0.32, and with 314 million shares outstanding, the company is capitalized at $100 million. As we stated, this $0.32 price is well below Mackie Research's target price of $2.15.
For more information, please visit the company's website www.madalena-ventures.com or contact President and CEO Kevin Shaw at 403-262-1901 ext 230 or email kdshaw@madalena-ventures.com.
For more information about Mackie Research or to obtain the report on Madalena Ventures, contact your nearest Mackie Research office. Their branches are listed on their website at www.mackieresearch.com.
About InvestmentPitch
InvestmentPitch.com, a multimedia company that provides a combined solution for creating and hosting financial video content, and distributing it across multiple platforms to investors and financial professionals, specializes in producing three minute videos based on news releases and research reports.
CONTACT:
InvestmentPitch.com
Barry Morgan, CFO
bmorgan@investmentpitch.com