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To: Boolish who wrote (60130)	11/19/2010 3:18:23 PM
From: Veteran98	Read Replies (1) \| Respond to of 233809

MVN Q4 High Impact drilling - Madelana Ventures CAN X-1 oil discovery investorvillage.com Sierras Blancas oil formation in the Coiron Amargo block Madalena made the decision to frac test the first CANX-1 well vertically. The test range is excellent considering that MVN plans to produce these Sierras Blanco oil fields with hoizontal wells. I'd expect a multi-stage fracced horizontal well to produce 200% to 400% more than the stated flows from the vertical test. Madelana has mapped 7 oil fields on the Coiron Amargo block with estimated of 2 mm - 8 mmbo / field. MVN plans to produce this oil with 38 multi-stage fracced horizontal wells. A horizontal well flowing 2k bopd produces 720 mmbo / year, ramp up production for 1 year produce at peak for 3 years and ramp down production for 2 years and you have very nice development plan. 38 horizontals averaging 2k bopd produces 27 mmbo over a 5 year duration. A nice propect for this start up. Test results from CANX-3 are due out in a couple of weeks. The Coiron Amargo projects may generate cash flow that MVN needs to stay in business. MVN estimates $38/ bbl OpEx netbacks, which would compare to $51 /bbl for light oil in Colombia, $30 /bbl in Western Canada, and maybe $36 /bbl for heavy oil cold flow for Rubiales. Rubiales gets about 150 - 250 bopd from a vertical and 1200 bopd from a horizontal. CANX - 1 intial test flows look very promising for a veritical well even if you assume production from the low range, and assume production will be from horizontal wells that will flow oil at much higher rates. MVN is also elephant hunting on their current Curamhuele x- 1001 appraisal well. Curamhuele X1 discoverd oil, too far down dip and Yapai X1 discovered lots of gas with high inital test rates. Curamhuele x- 1001 is exploring for the Avile, Troncoso, and Mulichinco reserves that have produced 69 mmbo of oil from the nearby Filo Morado oil field to the north. Curamhuele x- 1001 has two targets one is a Truncation type (Bakken type) The Truncation propsect has 77 mmbo mapped in the Mulichinco. The Truncation field model is the the El Trapial oil field 406 mmbo to the east, and the Lomita Sur oil field 187 mmbo to the east. Also the Sierra Nerga oil field to the east. Curamhuele x - 1001 second well target is a thrust fault in a Foothills Trend. Curamhuele lies on the foreplains side of a regional north south fault that separates the mountains from the plains. I'd guess oil migrating from the source kitchen in the Foothills flows into foreplains traps. Many oil fields have produced large amounts of oil from this Trend. I believe this Argentina Foothills Trend, is similar to GTE's Colombia Foothills Trend. Both trends have an active source kitchen, cooking the oil and high quality production reservoirs. Curamhuele x-1001 3D seismic maps a 69 mmbo recoverable structure similar in size to Filo Morado in two proved production reservoirs Avile and Troncoso. Apache Energy a $36 billion company just farmed into the next propsect south of Curamhuele in this Foothills Trend.