Madalena Energy (MVN) is an Argentina-focused E&P player, which holds material positions in the Neuquen and Nororeste basins. Its interests in 13 concessions cover 950,000 acres and contain risked contingent recoverable resources of 105.2mmboe (172.7mmboe unrisked), with additional risked recoverable prospective resources of 192mmboe (unrisked 1.5bnboe). Importantly, the company has been able to grow production, reserves and resources over time, including a 374% increase in best estimates of risked contingent resources for its Vaca Muerta shale (at Coiron Amargo alone) over 2012 levels. Existing production realises healthy netbacks ($97/bbl in Q315) despite the fall in oil prices, providing useful cash flows. The company should see continued catalysts in 2016 to unlock the material resources contained in the acreage.
