Madalena Energy Inc. (CVE:MVN) said on Thursday that it had been advised by the refineries to which it delivers its oil that the price it will receive for November and December oil production will be reduced by approximately 30%.
Other producers have confirmed to the company that they have been similarly advised. The company received an average price per barrel during the third quarter of $61.65.
Madalena is assessing the impact of this price reduction on its business operations. However, one of the parties with whom the company was in discussion regarding the sale of certain Madalena assets has now withdrawn from those discussions, citing this oil price reduction.
Madalena is an independent, Canadian-headquartered, Argentine-focused upstream oil and gas company with operations in four provinces of Argentina where it is focused on the delineation of unconventional resources in the Vaca Muerta shale, Lower Agrio shale and Loma Montosa oil plays. The company is implementing horizontal drilling and completions technology to develop both its conventional and resource plays.
Story by ProactiveInvestors