(All dollar figures are expressed in
United States Dollars, unless
otherwise noted)
CALGARY, April 24, 2017 /CNW/ - Madalena Energy Inc.
("Madalena" or the "Company") (TSXV: MVN and OTCQX: MDLNF)
announces that pursuant to a purchase and sale agreement dated
April 21, 2017 with an arms-length
third party (the "Transaction"), the Company sold 4,683,611
escrowed common shares in Point Loma Resources Ltd. ("Point Loma")
for gross cash proceeds of $0.8
million (CAD 1.1 million).
These common shares were acquired by Madalena pursuant to the sale
of the Company's Canadian oil and gas assets in June 2016 and will be released from escrow in 20%
increments in six month intervals commencing July 2017. Closing of the Transaction will take
place in two equal tranches. The first tranche was completed
on April 24, 2017 and the second
tranche is expected to close on or about May
25, 2017.
The Company, as previously disclosed, has been experiencing
liquidity challenges. Proceeds from the sale of these common shares
do not resolve the liquidity challenges the Company is facing,
however, the proceeds will provide assistance in continuing to
manage the business.
About Madalena Energy
Madalena is an independent, Canadian headquartered, Argentine
focused upstream oil and gas company with operations in four
provinces of Argentina where it is
primarily focused on the delineation of unconventional oil and gas
resources. The Company is implementing horizontal drilling and
completions technology to develop both its conventional and
resource plays.
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 Company'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.