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Madalena Announces its 2012 Year End Financial Results and Reserves

April 30, 2013

CALGARY, Alberta, April 30, 2013 /PRNewswire/ –

Madalena Ventures Inc. (TSXV: MVN) (the “Company” or “Madalena”) is pleased to provide
information on its operating and financial results for the three months and year ended
December 31, 2012 and the Company’s 2012 year end reserves.

Copies of the Company’s consolidated financial statements for the year ended December
31, 2012, the related management’s discussion and analysis and the Annual Information Form
(the “AIF”) of the Company for the year ended December 31, 2012 have been filed with
Canadian securities regulatory authorities and will be made available under the Company’s
profile at http://www.sedar.com and on the Company’s website at

http://www.madalena-ventures.com.

2012 Year End Financial and Reserve Highlights

(as of December 31, 2012 – all amounts are in Canadian dollars and net to Madalena’s
interest unless otherwise stated.)

        - Maintained a strong balance sheet with a positive working capital of
          approximately 30.0 million and zero debt;
        - Total Company proved plus probable ("P+P") reserves of 3.894 MMboe (46% crude
          oil and natural gas liquids) representing a 149% increase from Madalena's 2011 year
          end P+P reserves;
        - 62% of P+P reserves are categorized as proved reserves;
        - A P+P reserve life index of 13.2 years and a proven reserve life index of 8.2
          years, based on December 2012 actual production of 809 boe/d;
        - Reserve net present value of P+P reserves before tax (discounted at 10%) of
          $33.7 million;
        - Achieved finding, development & acquisition ("FD&A") costs on its Canadian
          assets of $14.78/boe of P+P reserves, or $23.47/boe of proved reserves, both of which
          include the change in future development costs;
        - A large inventory of horizontal locations on Madalena's western Canadian lands
          remain unbooked; and
        - Estimates of the Company's unconventional shale resources across its three
          blocks in the Neuquen basin, Argentina are quantified in a separate resource report
          prepared by Ryder Scott Petroleum Consultants Ltd. ("Ryder Scott") in accordance with
          National Instrument 51- 101 - Standards for Disclosure for Oil and Gas Activities of
          the Canadian Securities Administrators ("NI 51-101") (see separate press release dated
          April 30, 2013).

Summary of Financial and Operational Results

                              Three months ended                  Year ended
                                  December 31                    December 31

                               2012            2011           2012            2011
        Financial
        Oil and gas
        revenue           3,011,804         609,340      5,545,294       2,598,503
        Net loss         (5,075,119)     (1,585,520)    (8,865,201)    (16,136,543)
        Per share -
        basic and
        diluted               (0.02)          (0.01)         (0.03)          (0.06)
        Capital
        expenditures
        Business
        combination      16,090,000               -     16,090,000               -
        Capital
        expenditures      6,309,521       4,082,646     22,851,417      20,034,093
        Working capital  30,025,431      14,442,910      30,025,31      14,442,910
        Equity
        outstanding
        Common shares   314,307,185     260,020,517    314,307,185     260,020,517
        Stock options    22,333,699      13,977,034     22,333,699      13,977,034
        Operating
        Average Daily
        Production
        Crude oil and
        condensate -
        Bbls/d                  327              84            177             108
        Natural gas -
        Mcf/d                 1,377               -            369               -
        NGLs - Bbls/d            78               -             20               -
        Total - boe /d          634              84            258             108
        Average Sales
        Prices
        Crude oil and
        condensate -
        $/Bbl                 74.75           69.26          75.23           60.58
        Natural gas -
        $/Mcf                  3.35               -           3.41               -
        NGLs - $/Bbl          48.04               -          48.04               -
        Total - $/boe         51.66           62.96          59.86           60.58
        Operating
        Netbacks
        $/boe                 13.49           12.99          18.18           17.25

Outlook

As previously reported on April 15, 2013, Madalena’s current productive capability is
approximately 2,000 boe/d (44% oil and natural gas liquids (“NGLs”)), representing a 900%
increase from the Company’s October 2012 production level. The Company has a current base
production of approximately 1,200 boe/d (43% oil & NGLs) with in excess of 1,200 boe/d of
tested volumes behind pipe from recently completed horizontal development wells in its
Greater Paddle River area of western Canada. The Company anticipates that these behind
pipe production volumes will be brought on-stream during the second quarter of 2013.

Throughout the remainder of 2013, Madalena is planning to have ongoing operations on
its international and domestic assets, focused primarily on horizontal development work in
both jurisdictions, high impact unconventional shale drilling, and the acquisition of 3D
seismic on key exploration acreage internationally.

Disclosure of Reserves Data

All of Madalena’s international reserves were evaluated by Ryder Scott and all of
Madalena’s domestic reserves were evaluated by McDaniel & Associates Consultants Ltd. in
separate reports dated effective December 31, 2012 (collectively, the “Reserve Reports”).
The Reserve Reports were prepared in accordance with NI 51-101 and the standards contained
in the Canadian Oil and Gas Evaluation Handbook (the “COGE Handbook”). The reserves data
provided in this news release (“Reserves Data”) summarizes the oil, liquids and natural
gas reserves associated with Madalena’s assets and properties and the net present values
of future net revenue for these reserves using forecast prices and costs as at December
31, 2012. The Reserves Data represents only a portion of the disclosure required under NI
51-101. All of the required information is in the AIF, which has been filed with Canadian
securities regulatory authorities and will be made available under the Company’s profile
at http://www.sedar.com and on the Company’s website at

http://www.madalena-ventures.com.

About Madalena – Domestic and International Assets

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.

Domestically, Madalena’s core area of operations is located in the Greater Paddle
River area of west-central Alberta where the company holds approximately 200 gross (>150
net) sections of land (78% average W.I.) encompassing multiple light oil and liquids-rich
gas resource plays. Madalena’s domestic focus is to exploit its large inventory of
horizontal development locations on its Ostracod oil, Notikewin/Wilrich liquids-rich gas,
and Nordegg oil & liquids-rich gas resource plays. Madalena also holds more than 100 net
sections (100% W.I.) which are prospective for the Duvernay shale.

Internationally, Madalena holds three large blocks within the prolific Neuquen basin
in Argentina where it is focused on the delineation of vast petroleum in-place shale &
unconventional resources in the Agrio, Mulichinco, Quintuco and Vaca Muerta shales. The
Company is also developing a conventional oil play in the Sierras Blancas formation.
Madalena holds 135,000 net acres on the Coiron Amargo (35,027 net acres), Curamhuele
(50,400 net acres) and Cortadera (49,600 net acres) blocks.

Madalena trades on the TSX Venture Exchange under the symbol MVN. Basic corporate
information, recent news releases and regularly updated corporate presentations are
available on the Company’s website at http://www.madalena-ventures.com.

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 with
respect to the Company’s reserves and production from its properties. 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. In particular, this news release contains
forward-looking statements pertaining to operational activities to be conducted by the
Company. 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

http://www.sedar.com.

Reserves and Other Oil and Gas Disclosure

Any references in this news release to test rates, flow rates, initial and/or final
raw test or production rates, early production, test volumes behind pipe and/or “flush”
production rates are useful in confirming the presence of hydrocarbons, however, such
rates are not necessarily indicative of long-term performance or of ultimate recovery.
Such rates may also include recovered “load” fluids used in well completion stimulation.
Readers are cautioned not to place reliance on such rates in calculating the aggregate
production for Madalena. In addition, the Vaca Muerta shale is an unconventional resource
play which may be subject to high initial decline rates.

All calculations converting natural gas to barrels of oil equivalent (“boe”) have been
made using a conversion ratio of six thousand cubic feet (six “Mcf”) of natural gas to one
barrel of oil, unless otherwise stated. The use of boe may be misleading, particularly if
used in isolation, as the conversion ratio of six Mcf of natural gas to one barrel of oil
is based on an energy equivalency conversion method primarily applicable at the burner tip
and does not represent a value equivalency at the wellhead. Given that the value ratio
based on the current price of crude oil as compared to natural gas is significantly
different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be
misleading as an indication of value.

Certain information in this document may constitute “analogous information” as defined
in NI 51-101, including, but not limited to, information relating to the areas in
geographical proximity to prospective lands held by Madalena and production information
related to wells that are believed to be on trend with the Company’s properties. Such
information has been obtained from government sources, regulatory agencies or other
industry participants. Management of Madalena believes the information is relevant as it
helps to define the reservoir characteristics in which Madalena may hold an interest.
Madalena is unable to confirm that the analogous information was prepared by a qualified
reserves evaluator or auditor. Such information is not an estimate of the reserves or
resources attributable to lands held or to be held by Madalena and there is no certainty
that the reservoir data and economics information for the lands held or to be held by
Madalena will be similar to the information presented herein. The reader is cautioned that
the data relied upon by Madalena may be in error and/or may not be analogous to such lands
to be held by Madalena.

The Reserve Reports are based on certain factual data supplied by the Company and the
Reserve Engineers’ opinion of reasonable practice in the industry. The extent and
character of ownership and all factual data pertaining to the Company’s petroleum
properties and contracts (except for certain information residing in the public domain)
were supplied by the Company to the Reserve Engineers and accepted without any further
investigation. The Reserve Engineers accepted this data as presented and neither title
searches nor field inspections were conducted.

All evaluations of future revenue are stated after the deduction of future income tax
expenses (unless otherwise noted in the tables), royalties, development costs, production
costs and well abandonment costs but before consideration of indirect costs such as
administrative, overhead and other miscellaneous expenses. The estimated future net
revenue contained in the following tables does not represent the fair market value of the
reserves associated with Madalena’s assets and properties. There is no assurance that the
forecast price and cost assumptions will be attained and variances could be material. The
recovery and reserves estimates for Madalena’s assets and properties described herein are
estimates only and there is no guarantee that the estimated reserves will be recovered.
The actual reserves for Madalena’s assets and properties may be greater or less than those
calculated.

In this news release, reserve life index is calculated by dividing reserves as at the
effective date of the Reserve Reports, being December 31, 2012, by the December 2012
production, representing a measure of the amount of time production could be sustained at
the production rates based on the reserves at the applicable point in time.

The aggregate of the exploration and development costs incurred in the most recent
financial year and the change during that year in estimated future development costs
generally will not reflect total finding and development costs related to reserves
additions for that year. Under NI 51-101, the methodology to be used to calculate finding
and development costs includes incorporating changes in future development capital
required to bring the proved undeveloped and probable reserves to production. Changes in
future development capital have been taken into account in these calculations. In this
news release, FD&A costs have been calculated prior to eliminating the effects of
acquisitions and dispositions. After eliminating the effects of acquisitions and
dispositions, finding and development costs for the year ended December 31, 2012 are
$18.86/boe on P+P reserves and $32.60/boe on proved reserves for the Company’s Canadian
assets; such finding and development costs were calculated in accordance with NI 51-101
using the following two methods: (1): adding exploration and development costs incurred in
the most recent financial year with the change during the most recent financial year in
estimated future development costs relating to proved reserves and dividing that sum by
additions to proved reserves during the most recent financial year; and (2) adding
exploration and development costs incurred in the most recent financial year with the
change during the most recent financial year in estimated future development costs
relating to proved reserves and probable reserves and dividing that sum by additions to
proved reserves and probable reserves during the most recent financial year. While NI
51-101 requires disclosure of certain comparative information for the three most recent
financial years when disclosing finding and development costs, due to the fact that
Madalena’s recent acquisition of Canadian assets occurred just prior to year-end in 2012,
if such information was provided it could be misleading, as it would be comparing
significantly different asset bases.

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.

For further information:

        Kevin Shaw, P.Eng, MBA
        President and Chief Executive Officer
        Madalena Ventures Inc.
        Phone: +1(403)262-1901 (Ext. 230)
        kdshaw@madalena-ventures.com

        Thomas Love, CA
        VP, Finance and Chief Financial Officer,
        Madalena Ventures Inc.
        Phone: +1(403)262-1901 (Ext. 227)
        tlove@madalena-ventures.com

SOURCE Madalena Ventures Inc.


Source: PR Newswire