Madalena Energy Inc. has established a capital budget for the remainder of 2014 of CAD 36 million. This budget is focused on a combination of high impact horizontal wells in the Sierras Blancas oil play, development horizontals in the Ostracod oil play, re-entries and workovers for production optimization, and unconventional shale delineation activities. At the end of 2014, the Company expects to be in a positive working capital position with no debt and a strong balance sheet with financial flexibility.

The company expects to grow production for the remainder of 2014 and estimates to exit 2014 with corporate production of approximately 5,200 boe/d to 5,400 boe/d (72% oiland NGLs) while also advancing the Company's unconventional shale resources.