READER ADVISORIES Forward-Looking Statements or Information Certain - - PowerPoint PPT Presentation

MAY 2014

Madale na

e n e r g y

inc .

Internationally Applying Horizontal Technology to High Deliverability Reservoirs; Working to Delineate and Unlock Unconventional Shale / Tight Sand Resources

www.madalenaenergy.com

Head Office: MADALENA ENERGY INC. Suite 200, 707 - 7th Avenue SW Calgary, Alberta, Canada T2P 3H6 International Office: MADALENA ENERGY S.A. 1209 Posadas, 5th Floor Buenos Aires, ARG C1011ABE

MVN (TSX-V) MDLNF (OTC)

READER ADVISORIES

MAY 2014 2

Forward-Looking Statements or Information

Certain statements contained in this presentation of Madalena Energy Inc. ("Madalena" or the "Corporation") constitute forward-looking statements or information (collectively "forward-looking statements") within the meaning of the "safe harbour“ provisions of applicable securities legislation. Forward-looking statements are typically identified by words such as "anticipate", "continue", "estimate", "expect", "forecast", "illustrative", "may", "will", "project", "could", "plan", "intend", "should", "believe", "outlook", "objective", "aim", "potential", "target", "seek", "budget", "predict", "might" and similar words and derivatives thereof suggesting future events or future performance. All statements other than statements of historical fact may be forward-looking statements. In addition, statements relating to "reserves" or "resources" are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions, that the reserves or resources described exist in the quantities predicted

• r estimated and can be profitably produced in the future. In particular, this document contains, without limitation, forward-looking statements pertaining to the following: all details of, all projections of future activities related to, and all expectations of our

performance and results as a result of executing, Madalena's short and long term plans, strategies and goals, and the benefits anticipated to accrue to Madalena and its securityholders as a result thereof; expected production levels; expected additional oil and gas plays that could provide opportunities to the Corporation; expected product types in the Corporation's areas in which it holds assets; expected operations to be undertaken by the Corporation in the future and the timing thereof; type-curves for various kinds of wells that are expected by the Corporation and the assumptions related thereto; price decks provided by independent reserves evaluators; Madalena's inventory of drilling locations; the expected quality of the Corporation's assets and the probability of successful

• perations on such assets; the thickness of zones in Madalena's assets; and the quality of infrastructure in the areas in which the Corporation operates.

With respect to forward-looking statements contained in this document, we have made assumptions regarding, among other things: the expected nature of and timing of operational activity; Madalena's ability to execute on its short and long-term plans as described herein and the impact that the successful execution of such plan will have on Madalena and its shareholders; the laws and regulations that Madalena will be required to comply with, including laws and regulations relating to taxation, royalty regimes and environmental protection; future capital expenditure levels; future crude oil, natural gas liquids and natural gas prices and differentials between light, medium and heavy oil prices and Canadian, WTI and world oil prices; future crude oil, natural gas liquids and natural gas production levels; drilling results; future exchange rates and interest rates; future debt levels; the cost of expanding Madalena's property holdings and growing production; Madalena's ability to obtain equipment in a timely manner to carry out exploration and development activities and the costs thereof; Madalena's ability to market oil and natural gas successfully to current and new customers; the impact of increasing competition; Madalena's ability to obtain financing on acceptable terms; and our ability to add production and reserves through Madalena's development and exploitation activities. In addition, many of the forward-looking statements contained in this document are located proximate to assumptions that are specific to those forward-looking statements, and such assumptions should be taken into account when reading such forward-looking statements. Although Madalena believes that the expectations reflected in the forward-looking statements contained in this presentation, and the assumptions on which such forward-looking statements are made, are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking statements included in this document, as there can be no assurance that the plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not

• ccur, which may cause our actual performance and financial results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties

include, among other things: the possibility that Madalena will not be able to successfully execute its short or long-term plan in part or in full, and the possibility that some or all of the benefits that Madalena anticipates will accrue to it and its securityholders as a result of the successful execution of such plans do not materialize; the impact of weather conditions on seasonal demand and Madalena's ability to execute capital programs; risks inherent in oil and natural gas operations; uncertainties associated with estimating reserves and resources; competition for, among other things, capital, acquisitions of reserves, resources, undeveloped lands and skilled personnel; incorrect assessments of the value of acquisitions; geological, technical, drilling and processing problems; general economic and political conditions in Canada, the U.S., Argentina and globally, and in particular, the effect that those conditions have on commodity prices and Madalena's access to capital; industry conditions, including fluctuations in the price of crude oil, natural gas liquids and natural gas, price differentials for crude oil produced in Canada and Argentina, respectively, as compared to other markets, and transportation restrictions; royalties payable in respect of oil and natural gas production and changes to government royalty frameworks; changes in government regulation of the oil and natural gas industry, including environmental regulation; fluctuations in foreign exchange or interest rates; unanticipated operating events or environmental events that can reduce production or cause production to be shut-in or delayed (including wild fires and flooding); failure to obtain regulatory, industry partner and other third-party consents and approvals when required, including for acquisitions, dispositions and mergers; failure to realize the anticipated benefits of dispositions, acquisitions, joint ventures and partnerships; changes in taxation and other laws and regulations that affect us and our securityholders; the potential failure of counterparties to honour their contractual obligations; and the other factors described under "Risk Factors" in our Annual Information Form, and described in our public filings available in Canada at www.sedar.com. Readers are cautioned that this list of risk factors should not be construed as exhaustive. The forward-looking statements contained in this document speak only as of the date of this document. Except as expressly required by applicable securities laws, we do not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.

Notes To Disclosure of Resources: (1) "Total Petroleum Initially In Place" means DPIIP + UPIIP. When calculating DPIIP, there is no material production or reserves associated with these properties. Contingent resources is the only category of DPIIP that has been categorized as recoverable. Prospective resources is the only category of UPIIP that has been categorized as recoverable. There is no certainty that it will be commercially viable to produce any portion of the contingent resources referred to in the tables above. There is no certainty that any portion of the prospective resources referred to in the tables above will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of these resources. (2) Certain volumes are arithmetic sums of multiple estimates of contingent & prospective resources, which statistical principles indicate may be misleading as to volumes that may actually be

• recovered. Readers should give attention to the estimates of individual classes of resources and appreciate the differing probabilities of recovery associated with each class as explained herein.

Details on the categories that comprise these calculations are in the tables that follow.

READER ADVISORIES

MAY 2014 3

Oil & NGLs (MMbbl) Natural Gas (Tcf) Oil & NGLs + Natural Gas (MMboe) Low Estimate P90 Best Estimate P50 High Estimate P10 Low Estimate P90 Best Estimate P50 High Estimate P10 Low Estimate P90 Best Estimate P50 High Estimate P10 Vaca Muerta Shale

242.6 244.4 246.2 0.077 0.077 0.078 255.4 257.4 259.2

Notes: (1) When calculating DPIIP, there is no material production or reserves associated with these properties. All DPIIP, other than contingent resources, has been categorized as unrecoverable. There is no certainty that it will be commercially viable to produce any portion of the resources referred to In the table above. (2) These volumes are arithmetic sums of multiple estimates, which statistical principles indicate may be misleading as to volumes that may actually be

• recovered. Readers should give attention to the estimates of individual classes of resources and appreciate the differing probabilities of recovery

associated with each class as explained herein.

Coiron Amargo Contingent Resources(1) (net to Madalena) Oil, NGLs and Natural Gas at December 31, 2012

Oil & NGLs (MMbbl) Natural Gas (Tcf) Oil & NGLs + Natural Gas (MMboe) Low Estimate P90 Best Estimate P50 High Estimate P10 Low Estimate P90 Best Estimate P50 High Estimate P10 Low Estimate P90 Best Estimate P50 High Estimate P10 Vaca Muerta Shale

5.8 18.3 30.6 0.002 0.006 0.01 6.1 19.3 32.2 Coiron Amargo Discovered Petroleum Initially In Place (1) (net to Madalena) Oil, NGLs and Natural Gas at December 31, 2012

Note: (1) There is no certainty that it will be commercially viable to produce any portion of the resources referred to in the table above. Oil & NGLs (MMbbl) Natural Gas (Tcf) Oil & NGLs + Natural Gas (MMboe) Low Estimate P90 Best Estimate P50 High Estimate P10 Low Estimate P90 Best Estimate P50 High Estimate P10 Low Estimate P90 Best Estimate P50 High Estimate P10 Vaca Muerta Shale

2,687.8 2,717.5 2,747.5 0.851 0.861 0.870 2,829.7 2,860.9 2,892.5

Notes: (1) Prospective resources is the only category of UPIIP that has been categorized as recoverable. There is no certainty that any portion of the resources referred to in the table above will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of these resources (2) These volumes are arithmetic sums of multiple estimates, which statistical principles indicate may be misleading as to volumes that may actually be

• recovered. Readers should give attention to the estimates of individual classes of resources and appreciate the differing probabilities of recovery

associated with each class as explained herein.

Coiron Amargo Prospective Resources(1) (net to Madalena) Oil, NGLs and Natural Gas at December 31, 2012

Oil & NGLs (MMbbl) Natural Gas (Tcf) Oil & NGLs + Natural Gas (MMboe) Low Estimate P90 Best Estimate P50 High Estimate P10 Low Estimate P90 Best Estimate P50 High Estimate P10 Low Estimate P90 Best Estimate P50 High Estimate P10 Vaca Muerta Shale

122.7 249.7 377.2 0.039 0.079 0.119 129.2 262.9 397.1 Coiron Amargo Undiscovered Petroleum Initially In Place (1) (net to Madalena) Oil, NGLs and Natural Gas at December 31, 2012

Note: (1) Prospective resources is the only category of UPIIP that has been categorized as recoverable. There is no certainty that any portion of the resources referred to in the table above will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of these resources. Oil & NGLs (MMbbl) Natural Gas (Tcf) Oil & NGLs + Natural Gas (MMboe) Low Estimate P90 Best Estimate P50 High Estimate P10 Low Estimate P90 Best Estimate P50 High Estimate P10 Low Estimate P90 Best Estimate P50 High Estimate P10 Lower Agrio Shale

3,835.7 4,763.4 5,834.0 2.770 3.955 5.443 4,298.4 5,422.5 6,741.2

Vaca Muerta Shale

7,884.8 9,642.9 11,762.2 17.405 52.017 90.208 10,785.7

18,312.3 26,796.9

Total 11,720.5 14,406.2 17,596.2 20.182 55.971 95.651 15,084.2

23,734.8 33,538.1

Notes: (1) Prospective resources is the only category of UPIIP that has been categorized as recoverable. There is no certainty that any portion of the resources referred to in the table above will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of these resources (2) These volumes are arithmetic sums of multiple estimates, which statistical principles indicate may be misleading as to volumes that may actually be

• recovered. Readers should give attention to the estimates of individual classes of resources and appreciate the differing probabilities of recovery

associated with each class as explained herein.

Curamhuele Prospective Resources(1) (net to Madalena) Oil, NGLs and Natural Gas at December 31, 2012

Oil & NGLs (MMbbl) Natural Gas (Tcf) Oil & NGLs + Natural Gas (MMboe) Low Estimate P90 Best Estimate P50 High Estimate P10 Low Estimate P90 Best Estimate P50 High Estimate P10 Low Estimate P90 Best Estimate P50 High Estimate P10 Lower Agrio Shale

86.1 328.6 596.2 0.070 0.266 0.524 97.8 373.0 683.5

Vaca Muerta Shale

174.7 667.4 1,207.4 0.663 2.942 8.096 285.2 1,157.6 2,556.7 Total 260.8 996.0 1,803.6 0.733 3.208 8.620 382.9 1,530.6 3,240.2 Curamhuele Undiscovered Petroleum Initially In Place (1) (net to Madalena) Oil, NGLs and Natural Gas at December 31, 2012

Note: (1) There is no certainty that any portion of the resources referred to in the table above will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of these resources. Oil & NGLs (MMbbl) Natural Gas (Tcf) Oil & NGLs + Natural Gas (MMboe) Low Estimate P90 Best Estimate P50 High Estimate P10 Low Estimate P90 Best Estimate P50 High Estimate P10 Low Estimate P90 Best Estimate P50 High Estimate P10 Basal Quintuco

46.8 108.8 184.8 16.234 22.706 29.003 2,752.4 3,893.1 5,018.6

Vaca Muerta Shale

52.8 117.0 184.4 22.277 23.656 25.082 3,765.6 4,060.6 4,364.7 Total 99.6 226.8 369.2 38.510 46.362 54.085 6,518.0 7,953.7 9,383.3

Notes: (1) Prospective resources is the only category of UPIIP that has been categorized as recoverable. There is no certainty that any portion of the resources referred to in the table above will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of these resources (2) These volumes are arithmetic sums of multiple estimates, which statistical principles indicate may be misleading as to volumes that may actually be

• recovered. Readers should give attention to the estimates of individual classes of resources and appreciate the differing probabilities of recovery

associated with each class as explained herein.

Cortadera Prospective Resources(1) (net to Madalena) Oil, NGLs and Natural Gas at December 31, 2012

Oil & NGLs (MMbbl) Natural Gas (Tcf) Oil & NGLs + Natural Gas (MMboe) Low Estimate P90 Best Estimate P50 High Estimate P10 Low Estimate P90 Best Estimate P50 High Estimate P10 Low Estimate P90 Best Estimate P50 High Estimate P10 Basal Quintuco

5.6 14.0 27.2 1.745 2.932 4.569 296.5 502.6 788.7

Vaca Muerta Shale

6.4 14.8 27.6 1.958 3.189 4.428 332.7 546.3 765.6 Total 12.0 28.8 54.8 3.703 6.121 8.997 629.2 1,048.9 1,554.3 Cortadera Undiscovered Petroleum Initially In Place (1) (net to Madalena) Oil, NGLs and Natural Gas at December 31, 2012

Note: (1) Prospective resources is the only category of UPIIP that has been categorized as recoverable. There is no certainty that any portion of the resources referred to in the table above will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of these resources.

READER ADVISORIES

MAY 2014 4

DEFINITIONS: "Contingent resources" Definition: Those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. Contingencies may include factors such as economic, legal, environmental, political, and regulatory matters or a lack of markets. It is also appropriate to classify as contingent resources the estimated discovered recoverable quantities associated with a project in the early evaluation stage. "Discovered petroleum initially-in-place" or "discovered resources"

• r "DPIIP"

Definition: That quantity of petroleum that is estimated, as of a given date, to be contained in known accumulations prior to

• production. The recoverable portion of discovered petroleum initially-in-place includes production, reserves and contingent resources;

the remainder is unrecoverable. "Prospective resources" Definition: Those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of discovery and a chance of development. "Total petroleum initially-in-place", "total resources"

• r "TPIIP"

Definition: That quantity of petroleum that is estimated to exist originally in naturally occurring accumulations; equal to DPIIP plus

• UPIIP. It includes that quantity of petroleum that is estimated, as of a given date, to be contained in known accumulations, prior to

production, plus those estimated quantities in accumulations yet to be discovered. "Undiscovered petroleum initially-in-place", "undiscovered resources" or "UPIIP" Definition: That quantity of petroleum that is estimated, on a given date, to be contained in accumulations yet to be discovered. The recoverable portion of undiscovered petroleum initially-in-place is referred to as prospective resources; the remainder is unrecoverable.

Barrels of Oil Equivalent 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. Analogous Information Certain information in this document may constitute "analogous information" as defined in National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities ("NI 51-101"), including, but not limited to, information relating to areas, wells and /or operations that are in geographical proximity to or on-trend with prospective lands held by Madalena and production information related to wells that are believed to be on trend with Madalena's properties. Such information has been obtaine d from government sources, regulatory agencies or other industry participants. Management of Madalena believes the information may be relevant to help define the reservoir characteristics in which Madalena may hold an interest and such informati

• n has been presented to help demonstrate the basis for Madalena's business plans and strategies.

However, such analogous information has not been prepared in accordance with NI 51-101 and the Canadian Oil and Gas Evaluation Handbook and Madalena is unable to confirm that the analogous information was prepared by a qualified reserves evalu ator or auditor. Madalena has no way of verifying the accuracy of such information. There is no certainty that the results of the analogous information or inferred thereby will be achieved by Madalena and such information should not be construed a s an estimate of future production levels. Such information is also 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 la nds 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. Initial Production Rates Any references in this document 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. Such rates may be estimated based on other third party estimates or limited data available at this time and are not determinative of the rates at which such wells will continue production and decline thereafter.

MADALENA: Corporate Highlights

5

• Market capitalization ~$270 mm (as at Apr. 29, 2014); Shares outstanding (Basic) ~397 mm
• Strong Balance Sheet: Positive Working Capital, zero debt and Undrawn $13.0 mm debt facility
• Q4-2013 production averaged ~1,271 boe/d net (~56% oil & NGL’s) with the following subsequent events:
• Coiron Amargo horizontals (35% WI) exceeding expectations: CAN-15(h) tested at rates up to ~1,943 boe/d (72% oil) and CAN.xr-2(h)

averaged ~978 boe/d (72% oil) over a three month period with solution gas tied-in as of late March (see April 29, 2014 Press release)

• Unconventional “Prize”: Total Petroleum Initially-in-Place: 34.8 Billion boe (Net)⁽¹⁾

Prospective Resources: 2.84 Billion boe (Net)⁽¹⁾ Contingent Resources: 19.3 Million boe (Net)⁽¹⁾

• 2P reserves of 4.6 mmboe (51% oil and liquids) as of Dec. 31, 2013 driven by conventional plays
• Funded, active 2014 program includes: High impact Horizontals, Vaca Muerta shale fracs/tests, Vaca Muerta drilling

Re-entries for Lower Agrio Shale & Mulichinco tight sand play

• Actively working opportunities to unlock unconventional assets in Argentina & extensive undeveloped acreage in Canada

Neuquén Basin, Argentina

• +132,000 net acres (>205 net sections) across three blocks / concessions
• Focused on developing conventional oil and delineating unconventional shale

& tight sand resources

• Acreage positioned amongst world’s large integrated E&P’s, NOC’s & major

utility companies

Alberta, Western Canada

• +100,000 net acres (~155 net sections) strategically focused within the

Greater Paddle River Core Area

• Unbooked inventory of horizontal development locations
• Growing production and reserves via horizontal resource plays

MAY 2014

(1) P50 Best Estimates pursuant to the Resource Report of Madalena dated May 1, 2013 and effective December 31, 2012 prepared by Ryder Scott. Please see “Notes to Disclosure of Resources” on Slide 2

• f this presentation and the tables on Slide 3 of this presentation for some important information to be read in conjunction with our resource disclosure.

Kevin Shaw, P. Eng., MBA – President & CEO

• Previously Managing Director & Head of Energy Research at a boutique

investment bank and Partner & Senior E&P Research Analyst at Wellington West Capital Markets which sold to National Bank Financial.

• Prior thereto, held various technical, senior management and/or officer

roles with ExxonMobil (via Imperial Oil), Trimox Energy Inc., WorleyParsons.

Thomas Love, CA – VP, Finance & CFO

• Previously CFO, Online Energy Inc., CFO, Trimox Energy and Moxie

Exploration and President & CEO, Moxie Petroleum

• Prior thereto with Westward Energy Ltd. and Charterhall Oil Canada,

Articled at Clarkson Gordon & Co. (now Ernst & Young LLP)

Steve Dabner, P. Geol. – VP, Exploration

• Previously President and CEO, Online Energy Inc., President & CEO,

Trimox Energy and Moxie Exploration and VP Exploration, Moxie Petroleum

• Prior thereto with Cimarron Petroleum Ltd. and Home Oil Company Ltd.

Brent Foster, P. Eng. - VP, Engineering

• Previously VP, Engineering, Online Energy Inc., VP, Engineering & COO,

Blue Mountain Energy Ltd. and VP, Engineering of a Private-co E&P

• Prior thereto with Rigel Oil and Gas Ltd., Home Oil Company Ltd, Santos

Robert Stanton, P. Eng. - VP, Operations

• Previously VP, Operations, Online Energy Inc., VP, Engineering and

Operations, Result Energy Inc.

• Prior thereto with Oiltec Resources Ltd., Pinnacle Resources Ltd., Jordan

Petroleum Ltd., Transwest Energy Inc., Triton Canada Resources Ltd., Canadian Worldwide Energy Ltd. and Petro-Canada Inc.

Raymond Smith, P. Eng. (Chairman)

• President, CEO & Director, Bellatrix Exploration Ltd.

Barry Larson

• VP Operations & COO, Parex Resources Inc.

Keith MacDonald

• President, Bamako Investment Management Ltd

Jay Reid

• Partner, Burnet, Duckworth & Palmer LLP

Ving Woo, P. Eng.

• VP, Engineering & COO, Bellatrix Exploration Ltd.

Kevin Shaw, P. Eng., MBA

MANAGEMENT TEAM BOARD OF DIRECTORS

Ruy Riavitz – Argentina Country Manager

• Previously E&P Manager, Hidenesa Gas SA (now GyP of Neuquen) &

Independent Engineering Consultant

• Prior thereto Senior Consultant, PA Consulting, Reservoir Engineer, YPF

EXPERIENCED FULL-CYCLE OPERATING TEAM

6 MAY 2014

RYDER SCOTT: Unconventional Resource Report Highlights

7 MAY 2014

Unlocking the International “Prize” ⁽¹⁾

Madalena has 2.842 Billion boe of Prospective Resources (69% Vaca Muerta) plus 19.3 Million boe of Contingent Resources (100% Vaca Muerta)⁽¹⁾

• Ryder Scott conducted a resource

evaluation across three of Madalena’s blocks in the Neuquen Basin, Argentina

• Dated May 1, 2013 and

effective December 31, 2012

• Only includes evaluations for Vaca

Muerta Shale, Lower Agrio Shale and Basal Quintuco (top of Vaca Muerta) formations

• Only a portion of the total

acreage was assessed

• Total Petroleum Initially-in-Place⁽¹⁾

34.8 Billion boe Net to Madalena

• 17.6 Billion bbls oil + NGLs
• 103.3 Tcf natural gas
• Additional zones not included which

have significant upside potential across the blocks: Mulichinco, Tordillo / Sierras Blancas, Lotena, Lajas, and Los Molles shale

NET CONTINGENT RESOURCES (P50 -Best Estimate) BLOCK

FORMATION

Oil & NGLs (MMbbl)

• Nat. Gas

(Tcf) Oil, NGLs & Nat. Gas (MMBOE) Coiron Amargo Vaca Muerta 18.3 0.006 19.3 NET PROSPECTIVE RESOURCES (P50 -Best Estimate) Coiron Amargo Vaca Muerta 249.7 0.079 262.9 Curamhuele Lower Agrio 328.6 0.266 373.0 Vaca Muerta 667.4 2.942 1,157.0 Total Curamhuele 996.0 3.208 1,530.6 Cortadera Basal Quintuco 14.0 2.932 546.3 Vaca Muerta 14.8 3.189 546.3 Total Cortadera 28.8 6.121 1,048.9 TOTAL 1,274.5 9.408 2,842.4

(1) P50 Best Estimates pursuant to the Resource Report of Madalena dated May 1, 2013 and effective December 31, 2012 prepared by Ryder Scott. Please see “Notes to Disclosure of Resources” on Slide 2

• f this presentation and the tables on Slide 3 of this presentation for some important information to be read in conjunction with our resource disclosure.

INTERNATIONAL ASSETS: Neuquén Basin, Argentina

8 MAY 2014

• 3 Large Land Blocks (132,200 net Acres)
• Madalena blocks positioned in prime locations

and surrounded by increasing industry activity

• Unconventional oil and gas potential on all

three blocks (Vaca Muerta shale, Lower Agrio shale, Mulichinco & Basal Quintuco)

• Multi-stacked conventional zones for world-

class exploration upside

• Horizontal drilling / fracing technology being

implemented

• Industy Focus Area #1: Loma Lata / Loma

Campana / Coiron Amargo

• First “sweet spot” in the basin for shale activity

with over 150 shale wells drilled over last 14 months on offsetting acreage; 100’s of more wells being drilled

• Area moving to larger-scale exploitation &

development

• Industry Focus Area#2: El Trapia / Narambuena

/ Curamhuele

• Second evolving area in the basin with Chevron,

YPF, Total S.A., Exxon drilling exploration & appraisal wells offsetting Madalena acreage

Madalena is well positioned among established and well capitalized multi-national operators in the Neuquén Basin

Source: Based on mapping by the Gobierno de la Provincia del Neuquén, modified by Madalena Energy Inc. *** See “Analogous Information” on Slide 4 of this presentation. 46,657 Net Acres (73 Net Sections)

January 10, 2014 (Bloomberg): GYP discloses expected IPO valuation of ~$8,000/acre for “blended” (oil, gas & liquids) acreage valuation for Vaca Muerta shale

Cortadera (38% WI) Partner: Apache (47%, Op.) GyP (15%) 123,503 Gross Acres 46,657 Net Acres (73 Net Sections) 99,860 Gross Acres 34,951 Net Acres (54 Net Sections)

9 MAY 2014

• Vaca Muerta Shale:
• Thickness⁽¹⁾ >500m –Progressively deeper & thicker from east to west in the basin
• Thickness⁽¹⁾ >1000m with the inclusion of the overlying Quintuco
• Madalena expects that the Vaca Muerta is Oil prone at Coiron Amargo, Gas prone

around the Cortadera block & Oil, Liquids & Gas prone at Curamhuele

VACA MUERTA SHALE – All Three Blocks

Sources: (Isopach Map) Madalena Energy Inc. mapping; (Thermal Maturity Map) Based on mapping by the Gobierno de la Provincia del Neuquén, modified by Madalena Energy Inc. ⁽¹⁾ Ryder Scott Company, Petroleum Consultants, May 2013 and Madalena Energy Inc. internal data; Please see Madalena’s news release dated April 30, 2013 for details with respect to the risks and uncertainty associated with the recovery of Madalena’s resources.

10 MAY 2014

VACA MUERTA VS US SHALES: Comparison The Vaca Muerta shale compares favourably to leading US shale resource plays

(1) Ryder Scott Company, Petroleum Consultants, May 2013 and Madalena Energy Inc. internal data; Madalena owns a 35% working interest in the Vaca Muerta rights on the Coiron Amargo block and a 40% working interest in the Vaca Muerta rights on the Cortadera block in the Neuquen basin of Argentina. Madalena expects the Vaca Muerta to be oil prone at Coiron Amargo and gas prone at Cortadera. Please see Madalena’s news release dated April 30, 2013 for details with respect to the risks and uncertainty associated with the recovery of Madalena’s resources. (2) EOG Analyst Conference, April 2010 (3) Tudor, Pickering, Holt, “The Bakken Momentum Continues” November 2011, Hart Energy Playbooks 2008 & 2010, Jarvie –AAPG Section Meeting 2008 (4) Schlumberger, World Shale Summit September 2013 -Gas y Petroleo del Neuquén and YPF *** See “Analogous Information” on Slide 4 of this presentation. 250 500 750 1,000 m

Shale Thickness

Oil Shales Gas Shales Shale Comparisons Vaca Muerta Shale Madalena’s Coiron Amargo Area ⁽¹⁾ Eagle Ford ⁽²⁾ Bakken ⁽³⁾ Vaca Muerta Shale Madalena’s Cortadera Area ⁽¹⁾ Barnett ⁽⁴⁾ Haynesville ⁽⁴⁾ Marcellus ⁽⁴⁾ Thickness (m) 70 - 140 15 - 100 10 - 40 950 - 1350 45 - 75 70 - 90 20 - 45 Depth (m) 2800 - 3200 2200 - 3400 2700 - 3400 3200 - 4500 2300 3700 2100 Porosity (%) 4 - 8 4 - 11 5 - 8 6 - 10 4 - 8 7 - 9 7 - 9 Permeability (nD) 50 - 250 40 - 1300 50K – 500K 30 - 1000 50 - 200 100 - 500 100 - 200 TOC (%) 7 1 - 7 2 - 18 4 4 - 5 3 - 4 4 - 7 Reservoir Pressure (psi) 6300 - 8000 4700 - 7800 3800 – 8400 >11,000 3000 - 3800 7200 - 9100 3500 - 4200 Pressure Gradient (psi/ft) 0.65 – 0.75 0.65 – 0.70 0.43 – 0.75 >0.75 0.4 – 0.5 0.6 – 0.75 0.5 – 0.6

11 MAY 2014

• >225 meter thick⁽³⁾ shale within the oil generation

window on the Curamhuele block

LOWER AGRIO SHALE: Curamhuele & Cortadera

• 100

• 250

• 0.150

Deltaic facies

Significant Increase in Mud Gas

• Gas charged deltaic sandstone facies overlying the

shale at CorS.x-1 on the Cortadera block

Lower Agrio flowed ~150 bopd without stimulation/frac at CH.x-1⁽¹⁾

• Horizontal multi-stage frac potential

Source: Madalena Energy Inc. mapping ⁽¹⁾Average oil flow rate over the initial 25 hours of a production test conducted intermittently over a 5 day period and where pressures declined from > 40 Mpa to <25 Mpa during each of the 5 daily flow periods ⁽²⁾Tested through perforations after acid stimulation at YP.x-1 and unstimulated at YP.x-1001 ⁽³⁾Ryder Scott Company, Petroleum Consultants, May 2013 and Madalena Energy Inc. internal data; Please see Madalena’s news release dated April 30, 2013 for details with respect to the risks and uncertainty associated with the recovery of Madalena’s resources.

MAY 2014 12

• Liquids-rich gas bearing tight sands play
• >200 meters of Mulichinco on the

Cortadera and Curamhuele blocks

• Madalena expects there is horizontal

development potential in the lowermost and coarser clastic part of Mulichinco

• Total SA is drilling Mulichinco horizontals

at Aguada Pichana to the southeast of Cortadera (Source: Neuquen Scout Information Meetings)

MULICHINCO TIGHT SANDSTONE: Curamhuele & Cortadera

• 100

• 250

• 0.150

Lower Agrio Mulichinco Quintuco Mulichinco Low-stand

Mud gas readings rose by 2

• rders of magnitude at the

top of the Mulichinco

YP.x-1

The Mulichinco tight sandstones are prospective for gas within the Curamhuele and Cortadera blocks

Mulichinco tested 10 mmcf/d + 500 bpd of 51⁰ API condensate in Yp.x-1⁽¹⁾

Source: Madalena Energy Inc. mapping ⁽¹⁾Average flow rate over the initial 8 hours of a production test conducted by OEA in November 1990 *** See “Analogous Information” on Slide 4 of this presentation.

BLOCK #1: COIRON AMARGO Area

The “North Dakota Bakken” of the Neuquen Basin

13 MAY 2014

• Feb. 7, 2012 (Reuters): YPF discovers ~1 billion Boe at Loma La Lata
• ver 428 km2 area (5.6 MMboe/section) in the Vaca Muerta shale
• December 28, 2012 (Reuters): Bridas signs $1.5 billion MOU for

Vaca Muerta development involving a 2 year plan to drill 130 shale wells at Bajadade Anelo and Bandurria blocks to earn 35% and 24.5 % WI respectively

• July 16, 2013 (Reuters): Chevron signs $1.24 billion agreement for

Vaca Muerta development with YPF at Loma La Lata Norte & Loma Campana blocks for 50% W.I.

• Includes $250 million for sunk costs (5,000 net boe/d @

$48,000/boe/d) and $500 million for land (~$10,245/acre for 48,804 net acres)

• July 24, 2013 (Reuters): YPF attributes basin-wide in-place Vaca

Muerta resources of 661 Billion bbl oil and 1,181 Tcf gas

• September 23, 2013 (Reuters): Wintershall signs a non-binding LOI

with GyP for a 23,970 acre joint venture on the Aguada Federal block

• Total investment of ~$3.35 billion over three phases
• Estimated metric of ~$7,300/acre on Phase 1
• September 25, 2013 (Dow Jones Newswires): Dow Chemicals

agrees to invest $120 million for a 50% W.I. in a joint venture with YPF at the 11,000 acre El Orejano block

• Estimated metric of ~$10,900/acre
• December 2, 2013 (ENE): Petrobras announces new unconventional
• il & gas discovery (55% Petrobras, 45% Total SA) in Vaca Muerta

shale

Madale na e n e r g y

$3.35 Bn $1.5 Bn

Loma Lata $1.24 Bn JV Shell Vaca Muerta 500m horizontal 5 fracs Tested 465 boe/d (35⁰ API) SHELL increased 2014 capex to $500 million for Vaca Muerta drilling “We are drilling in the Vaca Muerta in Argentina, which looks good, early days but we have 2 rigs down there” (Shell: Oct.31, 2013)

$120 Mn JV *** See “Analogous Information” on Slide 4 of this presentation.

Petrobras Argentina / Total SA announce new Vaca Muerta Discovery (December 2013) RDA.x-1001 at 2,501m Chevron / YPF drilled over 150 Vaca Muerta shale wells in ~14 months and looking to ramp production from 25,000 bopd to 80,000 bopd by 2017

Loma Campana $1.6 Billion JV

BLOCK #1: COIRON AMARGO Focused on High Impact Horizontals & Vaca Muerta Shale

14 MAY 2014

COIRON AMARGO SUR Vaca Muerta (Unconventional oil)

• Recently shot two 3D seismic programs
• Upcoming Vaca Muerta shale completions / fracs

(CAS x-14 & CAS x-15)

• Additional Vaca Muerta shale exploration well

expected to be drilled in H2 - 2014

• >150 offsetting Vaca Muerta shale wells drilled by

industry to date led by Chevron, YPF, Shell and

• thers on offsetting blocks

COIRON AMARGO NORTE Sierras Blancas (Conventional oil sourced from Vaca Muerta shale)

• Northern portion (108 km2) converted to 25-year

exploitation license

• 4 of 6 Sierras Blancas light oil pools discovered to

date are in north

• First two horizontal wells exceeding expectations
• Third & Fourth horizontal wells to be drilled on CAN3

and CAN4 structures in 2014

• Rig commences drilling in Q2 on multi-well program

CAS x-14 CAS x-15

CAS x-5

CAS x-1

BdIT.x-1001 SB.x-2 SB.x-1

Source: Madalena Energy Inc. mapping

Madalena 35% W.I. in 99,860 gross (34,951 net) acres

*** See “Analogous Information” on Slide 4 of this presentation. CAN.xr-2(h) CAN-15(h)

BLOCK #1: COIRON AMARGO NORTE – Applying Horizontal Technology to Sierras Blancas Light Oil

15 MAY 2014

*** See “Analogous Information” on Slide 4 of this presentation. 10 100 1,000 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

BOPD MONTHS

8 Offsetting Sierras Blancas Horizontal Wells Historical Oil Production

Best Well- IP 700 bopd Year 1: 450 bopd Year 2: 190 bopd

Source: Secretaria de Energia de la Nacion

• Avg. Well- IP 470 bopd Year 1: 290 bopd Year 2: 150 bopd

10 100 1,000 10 20 30 40 50 60 70 80 90 100

BOPD DAYS

CAN.xr-2(h) Oil Production

Source: Madalena Energy Inc.

Source: Madalena Energy Inc. mapping

CAN-15(h) CAN.xr-2(h)

On-Stream: Dec. 19, 2013 Total oil production to Apr. 4, 2014: ~72, 400 bbls oil alone (25,300 net to MVN) plus associated solution gas (now tied in as of late March)

SIERRAS BLANCAS HORIZONTALS EXCEEDING EXPECTATIONS

• Very strong results on CAN-15(h) test and initial three

months of production from CAN.xr-2(h)

• Oil sourced from the Vaca Muerta shale
• CAN-15 expected to be on-stream soon
• Multiple additional wells planned in 2014
• Rig to commence drilling in Q2 on multi-well program
• CAN-15(h) tested at rates up to ~1,943 boe/d (72% oil)

and CAN.xr-2(h) averaged ~978 boe/d (72% oil) over a three month period with solution gas tied-in as of late March (see April 29, 2014 Press release)

Focused on Four Northern Pools Currently; Pools also identified in South

16 MAY 2014

BLOCK #2: CURAMHUELE – Overview

• Madalena Operated 90% W.I.

in 56,216 gross (50,595 net) acres

• Madalena expects oil and liquids-rich gas

potential throughout block on high-impact plays:

• Vaca Muerta shale: +500m thick⁽¹⁾
• Lower Agrio shale: +225m thick⁽¹⁾
• Mulichinco tight sandstone: +200m thick⁽¹⁾
• Additional exploration potential in

conventional zones

• Madalena preparing 2 high impact re-entry
• pportunities
• Madalena believes development supported by

significant legacy infrastructure and facilities associated with offsetting conventional

• perations
• Extension of first exploration period granted until
• Nov. 2014

Source: Based on mapping by the Gobierno de la Provincia del Neuquén, modified by Madalena Energy Inc. *** See “Analogous Information” on Slide 4 of this presentation. ⁽¹⁾ Ryder Scott Company, Petroleum Consultants, May 2013 and Madalena Energy Inc. internal data; Please see Madalena’s news release dated April 30, 2013 for details with respect to the risks and uncertainty associated with the recovery of Madalena’s resources.

Madale na

e n e r g y

56,216 Gross Acres

EL TRAPIAL / Narambuena Area (CHEVRON)

• ET.x-2006 (Vaca Muerta) -Drilled in 2013
• Indications of significant liquids & gas production
• 4+ Vaca Muerta shale wells being executed in field

as initial exploration phase for 2014 YPF drilling Lower Agrio Shale to North and Vaca Muerta shale

• Madalena 37.8% W.I. & Partnered w/

in 123,503 gross (46,657 net) acres

• Recent multi-year block extension executed
• CorS.X-1 deep, high pressure, test cased to

4,500m for unconventional shale and tight sandstone gas plays encountered:

• 1. Quintuco + Vaca Muerta: 1097m thick⁽¹⁾
• Vaca Muerta : 520m thick⁽¹⁾
• Quintuco : 577m thick⁽¹⁾
• 2. Mulichinco tight sandstone: 206m thick⁽¹⁾
• 3. Lower Agrio tight sand / shale potential
• Discovered large-petroleum in-place Vaca

Muerta shale gas resource to date

• Upcoming 2014 re-entry operations to

evaluate uphole zone(s) of interest (i.e. stacked on top of Vaca Muerta source rock) in the Mulichinco or Quintuco

• Total S.A. / Wintershall drilling Mulichinco

liquids-rich tight sand play with horizontal multi-stage frac’s to east

BLOCK #3: CORTADERA – Overview

17 MAY 2014

Source: Based on mapping by the Gobierno de la Provincia del Neuquén, modified by Madalena Energy Inc. ⁽¹⁾ Ryder Scott Company, Petroleum Consultants, May 2013 and Madalena Energy Inc. internal data; Please see Madalena’s news release dated April 30, 2013 for details with respect to the risks and uncertainty associated with the recovery of Madalena’s resources.

Cortadera (38% WI) Partner: Apache (47%, Op.) GyP (15%) 123,503 Gross Acres 46,657 Net Acres (73 Net Sections) 99,860 Gross Acres 34,951 Net Acres (54 Net Sections)

Greater Paddle River Core Area (>150 Net Sections of Land)

• Key Resource Plays for horizontal multi-stage frac operations:
• Ostracod
• Development - 56 net sections
• Oil
• Nordegg
• Emerging - 143 net sections
• Oil & liquids-rich gas
• Notikewin/Wilrich
• Development -134 net sections
• Liquids-rich gas
• Additional opportunities exist across acreage in:
• Duvernay shale (Approx. 100 net sections)
• Viking oil, Rock Creek oil
• Large inventory of unbooked horizontal drilling locations
• Drill-Ready Program for ongoing horizontal drilling / fracing
• Extensive undeveloped land position – potential for strategic partnerships

18 MAY 2014

DOMESTIC ASSETS: Alberta, Canada

GREATER PADDLE RIVER CORE AREA: Strategically Focused

ALBERTA

CALGARY EDMONTON

GREENCOURT PADDLE RIVER NITON LEAMAN BIGORAY WILDWOOD

Madalena Lands

WEST COVE MAHASKA 19 MAY 2014

~196 Gross Sections ~154 Net Sections High W.I. Multiple Horizontal plays Operated Lands Operated Infrastructure

6 miles

Long Run Hz Well⁽¹⁾ 3 Husky Hz Locations⁽¹⁾ 2 Husky Hz Wells⁽¹⁾ Recently Drilled (92% WI) West Cove Hz Well (Evaluation Ongoing)

6 miles

5 Producing MVN (100% WI) Paddle River Hz Wells 12-31 (Most Recent): On-Stream April 1, 2014

20 MAY 2014 Expected Area of Ostracod Prospectivity

Madalena Lands Depth to Ostracod

67

Gross Secs.

56 Net Secs.

Ostracod Rights

84%

• Avg. W.I.

⁽¹⁾ See “Analogous Information” on Slide 4 of this presentation

OSTRACOD OIL: Horizontal Development Project

Q4-2013 Domestic Production Ostracod accounted for ~70% of the ~1,100 boe/d total

Ø = 13.7% k = 5.33 md 2.69 gm/cc

HIGH QUALITY OSTRACOD SANDSTONE OIL RESERVOIR Capital cost ($M) 3,500 EUR (Mboe) 302 F&D cost ($/boe) 11.61 Netback ($/boe) 36.85 Recycle ratio 3.15x IP30 (Sales boe/d) 377 GOR (scf/bbl) 8600 NPV10% ($Million) $3.7 to $4.5 IRR 84% Payout (years) 1.2

All amounts are based on internally generated management estimates prepared by a qualified professional engineer Price Deck = McD. Jan. 1/14 ($4.00/mcf & $95.00/bbl) adjusted for transportation & quality

OSTRACOD OIL: Type Well Economics – For New Horizontals

21 MAY 2014

TYPE CURVE ASSUMPTIONS *** See “Analogous Information” on Slide 4 of this presentation.

NORDEGG OIL & LIQUIDS-RICH GAS: Emerging Resource Play

Madalena Lands

179

Gross Secs.

80%

• Avg. W.I.

143 Net Secs.

Nordegg Rights

• Nordegg Resource Widespread

across Madalena Lands

• Inventory of Horizontal

Locations

• Liquids-rich with Vertical

Producers at >100+ bbls/mmcf ⁽¹⁾⁽²⁾

Depth to Nordegg

22 MAY 2014 NORDEGG RESOURCE + 55 MM BOE of Oil & LIQUIDS-RICH GAS PRODUCED TO DATE (AER Data)

Wildwood 15-12 Horizontal

GREENCOURT PADDLE RIVER BIGORAY LEAMAN WILDWOOD 6 miles

⁽¹⁾ Based on AER data retrieved from Accumap on November 11, 2013. ⁽²⁾ See “Analogous Information” on Slide 4 of this presentation.

WEST COVE

MADALENA (MVN TSX-V) – Activity & Catalysts for Growth

23 MAY 2014

• Argentina Assets – Coiron Amargo, Curamhuele & Cortadera Blocks
• Balanced business strategy between production & reserves growth while working to delineate & unlock

significant upside across the company’s unconventional shale & tight sand resources

• Coiron Amargo 2014 operations:
• Drilling high-impact horizontal Sierras Blancas light oil wells: 2 recently drilled/tested; 2 to 3 more for 2014
• Multiple high-impact Vaca Muerta shale drilling , completions and testing to start in Q2 thru to Q4 2014
• Technically assessing deep gas potential on the block
• Curamhuele 2014 operations:
• Actively working opportunities / potential strategic partnerships to accelerate appraisal & development

activities on three large petroleum-in-place resources: Vaca Muerta shale, Lower Agrio Shale & Mulichinco tight sands

• Evaluate high-impact Lower Agrio shale and Mulichinco tight sand plays through re-entries of the CH.x-1 and

YP.x-1001 wells planned for H2’14; Shot 75 km2 3D seismic survey in Q1 – 2014 and currently processing

• Cortadera 2014 operations:
• Conduct re-entry at CorS.x-1 location to evaluate uphole zone(s) of interest in the Mulichinco (200+ metre

thick) or alternative; Operations expected to commence in late Q2 or into Q3 -2014; Madalena has financial carries in place for this work.

• Canadian Assets – Greater Paddle River Core Area
• 2014 program includes horizontal activity primarily focused on Ostracod oil development with evaluation
• f other emerging oil & liquids-rich resource plays
• Potential in 2014 for Joint Venture partnership opportunities to accelerate development on Madalena’s

extensive undeveloped land holdings

June 2013 – EIA Released Updated World Shale Oil & Gas Assessment

• Argentina has 4th largest technically

recoverable shale oil resource in the world

• Behind only Russia, USA & China
• 3X greater than Canada
• Argentina has 2nd largest technically

recoverable shale gas resource in the world

• Behind only China
• 1.2X greater than USA
• 1.4X greater than Canada
• Three Shale Plays in Argentina:

Vaca Muerta, Agrio, Los Molles

• Neuquén Basin is a the focus of Shale

Resource development by Major E&Ps and NOCs

APPENDIX #1: EIA - Argentina’s Shale Potential

24 MAY 2014

*** See “Analogous Information” on Slide 4 of this presentation.