CONDENSED INTERIM CONSO LIDATED FINA NCIAL … Energy Inc Condensed... · months ende June 30 ......
Transcript of CONDENSED INTERIM CONSO LIDATED FINA NCIAL … Energy Inc Condensed... · months ende June 30 ......
COONDENSED IN
FOR THE SIX
TERIM CONSO
X MONTHS EN
(UNA
OLIDATED FINA
NDED JUNE 30,
AUDITED)
ANCIAL STATEM
, 2018 AND 20
MENTS
017
M
C(
CS
Madalena Ener
Condensed InteUnaudited)
USD 000s Assets Current assetsCash and caTrade and oInventory Other curre
Property, planExploration anOther long‐te Liabilities Current liabiliCurrent porTrade and oTaxes payabDecommiss
Convertible dDeferred incoDecommissioOther long‐te Shareholders’Share capitaContributedEquity compAccumulateDeficit
Commitments See the accomp
rgy Inc.
erim Consolida
s ash equivalentsother receivabl
nt assets
nt and equipmnd evaluation arm assets
ties rtion of long teother payables ble ioning obligati
ebentures ome tax liabilityning obligationrm liabilities
’ Equity al d surplus ponent of conved other compr
and Other Lonpanying Notes
ated Statement
s es
ent assets
rm debt
ons
y ns
vertible debenrehensive loss
g‐term Liabilitto the Consolid
Condens
ts of Financial
ture
ies (note 15) dated Financia
sed Interim Co
Position
Note
347
9
8
9
10
8
al Statements
nsolidated Fin
AsJune20
2
((1
ancial Stateme
s ate 30 018
1,268 8,216 824 603
10,911 18,193 42,287
168 71,559
1,416 7,782
‐ 3,850 13,048 1,208 3,037 18,794 1,497 37,584
239,029 17,443
76 (26,941) 195,632) 33,975 71,559
ents Q2 2018|
As atDecember 31
2017
1,202 9,534 1,585
46112,78220,39339,869
20473,248
‐9,522453
3,85013,8251,2741,352
17,8211,977
36,249
238,98916,371
76(26,941)(191,496)
36,99973,248
2
1
M
Co(U
U
S
Madalena Ener
ondensed InterUnaudited)
USD 000s, exce
Revenues
Oil and natura
Royalties
Other Income
Expenses
Operating General and aRestructuring
Finance (incomShare‐based acompensatio
Warrants expe
Depletion and
Gain on dispo
Loss before in
Income tax re
Current
Deferred
Loss
Foreign curren
Comprehensiv
Net Loss per s
Basic and dilut
Basic and dilut
See the accomp
rgy Inc.
rim Consolidat
ept per share a
al gas revenues
dministrative
me) expenses nd long‐term ion
enses
depreciation
sal of assets
ncome taxes
covery (expen
ncy translation
ve Loss
share
ted – continuin
ted – total
panying Notes
ted Statements
mounts
s
incentive
nse)
adjustment
ng
to the Conden
Condens
s of Income (Lo
Note
18
17 17
13
11,12
8
3
10
10
nsed Interim Co
sed Interim Co
oss) and Comp
Three moJun
2018
9,802
(1,602)
108
8,308
4,2191,468
‐
1,233
538
90
1,925
(33)
9,440
(1,132)
‐
(2,382)
(2,382)
(3,514)
‐
(3,514)
(0.01)
(0.01)
onsolidated Fin
nsolidated Fin
prehensive Inco
onths endedne 30
2017
9,35
(1,675
7,68
6,192,952,20
38
(666
2
3,65
(841
13,90
(6,225
2,83
(2,056
77
(5,449
12
(5,325
(0.0
(0.0
nancial Statem
ancial Stateme
ome (Loss)
Six
2018
57 19,
5) (3,0
‐
82 16,
90 9,5102
2,
86 1,
6)
26
59 3,
1)
07 18,
5) (2,3
32
6) (1,7
76 (1,7
9) (4,1
24
5) (4,1
01) (0
01) (0
ents.
ents Q2 2018|
x months endeJune 30
20
,413
087) (
197
,523
,691 ,990
‐
,537
613
513
,590
(33)
,901
378) (
‐ (
758)
758)
136) (
‐
136) (
0.01)
0.01)
3
ed
017
19,693
(3,307)
‐
16,386
11,704 4,9232,202
1,032
(438)
26
7,419
(560)
26,308
(9,922)
(1,200)
2,406
1,206
(8,716)
288
(8,428)
(0.02)
(0.02)
M
Cond(Una
USDBal201NetSha(noComConWa
Bal
BalNetForadjSha(noWa
Bal
See t
Madalena Ener
densed Interimaudited)
D 000s lance at Decem17 t Loss are‐based comote 11) mmon shares invert debentuarrants (note 8
lance at June 3
lance at Decemt loss reign currency ustment are‐based comote 11) arrants (note 1
lance at June 3
the accompany
rgy Inc.
m Consolidated
mber 31,
mpensation
issue – res )
30, 2018
mber 31, 2016
translation
mpensation
1)
30, 2017
ying Notes to t
d Statements o
Share Capital (note 10)
238,989 ‐ ‐
40
‐
239,029
238,97
238,97
the Condensed
Condens
f Changes in Sh
Contributed
Surplus
16,371‐
559
‐
513
17,443
3 16,0
‐
‐
‐ (49‐
3 15,5
d Interim Conso
sed Interim Co
hareholders’ E
EquityComponent oConvertibleDebentures(note 8)
76‐‐
‐
‐
76
066
‐
‐
97) 26
595
olidated Financ
nsolidated Fin
Equity
of AccumulatOther
ComprehenLoss
(26,9
(26,94
76‐
‐
‐ ‐
76
cial Statements
ancial Stateme
ted
nsive Def
941) (19‐ (4‐
‐
‐
41) (195
(27,157) ‐
288
‐ ‐
(26,869)
s.
ents Q2 2018|
ficit
91,496) 4,136)
‐
‐
‐
5,632)
(157,700)
(8,716)
‐
‐ ‐
(166,416)
4
Total Equity
36,999 (4,136)
559
40
513
33,975
70,258
(8,716)
288
(497) 26
61,359
M
Co(U
UCONI
CCCIPEPoPtCN
FBCNCCI
C S
Madalena Ener
ondensed InterUnaudited)
USD 000s Cash provided Operating Net Loss tems not affec
Depletion Accretion Fair value cGain on disShare‐basecompensatWarrants eDeferred inUnrealizedLease comNon‐cash i
Change in otheChange in non‐Cash flow fromnvesting Property, plantEvaluation andProceeds on diof transaction fProceeds on ditransaction feeChange in non‐Net cash from
Financing Bank loan repaChange in non‐Net cash used Change in cashCash and cash mpact of forei
Cash and cash
See the accomp
rgy Inc.
rim Consolidat
by (used in):
cting cash: and depreciati
change on assesposal of asseted and long‐tetion expenses ncome tax expd (gain) loss on mitment liabilncrease of coner long‐term as‐cash working m (used in) ope
t and equipmed exploration assposal of PP&Efees sposal of assetes ‐cash working (used in) inves
ayment ‐cash working in financing ach and cash equequivalents, bign exchange o
equivalents, e
panying Notes
ted Statements
ion
ets held for salts rm incentive
pense (recoveryforeign exchaity ntingent liabilitssets capital rating activitie
nt additions ssets additionsE and E&E asse
ts held for sale
capital sting activities
capital ctivities ivalents eginning of peon cash balance
end of period
to the Conden
Condens
s of Cash Flows
Not
le 3,
11,1
y) nge
ty
es
s ets, net
e, net of
riod es
nsed Interim Co
sed Interim Co
s
Thre
Jte 2018
(3,514
3 1,92513 175
,4,5 (33
12 5388 90
2,38213 1,065
(3635
14 (1,225 1,244 3 (1584 (1,825
4
514 8
(1,975
614 1,200
1,200469798
1,268
onsolidated Fin
nsolidated Fin
ee months ended une 30
2017
4) (5,449 5 3,657 6‐ 1
3) (841
8 (6660 22 2,055 216) (265 174‐ 16
5) (4,0424 (4,656
8) (1725) (1
‐ 82
‐ 818 185) 1,66
‐ 0 0 9 (2,9968 5,94‐
8 2,94
nancial Statem
ancial Stateme
Six moJ
2018
9) (4,136 9 3,596 50 1) (33
6) 616 516 1,751 1,166) (704 86 2) (2,0706) 1,47
2) (3021) (2,297
9
9 5 (60 (2,605
‐ ‐ 1,20‐ 1,206) 62 1,20‐
6 1,26
ents.
ents Q2 2018|
onths ended une 30
2017
6) (8,71 0 7,4193 149‐ 150
3) (560)
3 (438)3 268 (2,406)9 4370) (53)4 212‐ 58
0) (2,421)1 (6,143)
2) (683)7) (155)
‐ 7,373
‐ 1,2806) (1,152)5) 6,663
‐ (1,646)0 ‐0 (1,646)6 (1,126)2 4,071‐ 1
8 2,946
5
16) 9 9 0 )
) 6 ) 7 ) 2 8 ) ) ) )
3
0 ) 3
) ‐ ) ) 1 1
6
NA(T
_
M
1
2
Notes to the CoAs of and for thTabular amounts a
___________
Madalena Ener
1. Reporting
Madalena of oil and nS.W., Calga
The condesubsidiarie
• M
• M
• M
• M
• M
• M
• Pe
2. Basis of PrThese condto a going course of bamend capprovincial capital comdependentchallenging
Statement
These condAccountingotherwise policies an31, 2017. Tstatementfinancial stcondensedfinancial sInternation(“IASB”).Thfor all perapproved a
ondensed Interhe Six Months are stated in thous
__________
rgy Inc.
Entity
Energy Inc. (thnatural gas in ary, Alberta, T2
ensed interim es: Madalena Petro
Madalena Energ
Madalena Petro
Madalena Petro
Madalena Ventu
Madalena Ventu
et‐Ja S.A. (Arge
reparation densed interimconcern, whicbusiness as thepital commitmeauthorities. Fammitments. Tht on obtaining g.
t of Complianc
densed interimg Standard 34,indicated. Thd method of cThe disclosuress. Certain infotatements havd interim consotatements fornal Financial hese consolidariods presenteand authorized
rim ConsolidatEnded June 30sands of United St
___________
he “Company” Argentina and2P 2Z1.
consolidated
oleum Ltd. (Can
gy Argentina S.
oleum America
oleum Holdings
ures Internatio
ures Internatio
entina)
m consolidatedh contemplateey become dueents outlined iilure to amendhe Company’s aalternative eq
ce
m consolidated, “Interim Finahese condensecomputation ass provided belormation and ve been condeolidated financr the year endReporting Stted financial sd as outlined d for issue by t
ted Financial St0, 2018 and 20tates dollars (“USD
__________
Condens
or “Madalena its principal p
financial stat
nada)
.R.L. (Argentina
s Limited (Barb
s Limited (Barb
onal Holding Co
onal Inc. (Barba
financial statee the realizatioe. Continuing an Note 15, whd the commitmability to contiuity, debt fina
d financial statancial Reportined interim cons the annual coow are incremdisclosures n
ensed or havecial statementded Decembeandards, as tatements follin note 3.Thehe Company’s
tatements 17 (UnauditedD”), except per sha
___________
sed Interim Co
a”) is involved place of busine
tements includ
a) (“MEA”)
bados)
bados)
ompany Inc. (B
ados)
ements have bn of assets andas a going concich is expectedments could resnue as a goingncing, and/or p
tements have bng” and are prensolidated finaonsolidated finmental to thosenormally inclue been discloses should be reer 31, 2017, wissued by thow the same ae condensed i Board of Direc
) are amounts and a
__________
nsolidated Fin
in the exploratess is Suite 160
de the results
Barbados)
een prepared d the settlemecern is depended to be achievesult in insufficig concern and dproceeds from
been preparedesented in Unancial statemenancial statemee included withded in the ned on an annead in conjuncwhich have behe Internationaccounting polinterim consolctors on Augus
as otherwise state
___________
ancial Stateme
tion, developm00 Dome Towe
s of the follo
in accordance nt of liabilitiesent upon the Ced through negient sources todischarge its om asset sales w
d in accordancited States Doents follow thents for the yeh the annual cootes to the aual basis onlyction with the een prepared nal Accountinglicies and methlidated financist 21, 2018.
ed)
__________
ents Q2 2018|
ment and proder, 333 – 7th A
owing wholly‐o
with IFRS apps in the normalCompany’s abilgotiations witho fund anticipatbligations wouhich could be
ce with Internaollars (“USD”), he same accoear ended Deceonsolidated finannual consoly. Accordingly, annual consolin accordanceg Standards hods of compuial statements
_____
6
uction Avenue
owned
licable lity to h the ted uld be
ational unless unting ember nancial idated these idated e with Board
utation s were
NA(T
_
M
Notes to the CoAs of and for thTabular amounts a
___________
Madalena Ener
Significant
IFRS 15 The IASB ispecifies reannual permodified rstatementcontracts ftiming of tadjustmen IFRS 9 IFRS 9 proinstrument1, 2018, thvalue of th IFRS 16 IFRS 16 wacontains a the Legal disclosure the accounleases of ’months or(i.e., the lethe right‐oand the deLessees wiin the leasthose paymadjustmenLessor acccontinue toof leases: oIFRS 16 alsIFRS 16 is ebefore an modified r
ondensed Interhe Six Months are stated in thous
__________
rgy Inc.
t accounting po
issued IFRS 15evenue recognriods beginningetrospective ms have not befollowing the ghe Company’snt to retained e
ovides guidants. The new stahe Company ahe Company’s f
as issued in JaLease, SIC‐15 Form of a Leaof leases and nting for finanlow‐value’ assr less). At the cease liability) aof‐use asset). Lepreciation expll be also reque term, a chanments). The lesnt to the right‐ocounting undero classify all leoperating and so requires lesseffective for anentity applies etrospective a
rim ConsolidatEnded June 30sands of United St
___________
olicies
5 “Revenue fronition criteria g on or after Jamethod that weeen restated. Tguidance outlins previous reveearnings was re
ce on the recandard was efadopted IFRS 9financial instru
anuary 2016 anOperating Leaase. IFRS 16 serequires lesseence leases undets (e.g., perscommencemenand an asset reLessees will bepense on the riuired to remeange in future lessee will generof‐use asset. r IFRS 16 is suases using thefinance leasessees and lessornnual periods IFRS 15. A lespproach. The s
ted Financial St0, 2018 and 20tates dollars (“USD
__________
Condens
om Contracts and expandedanuary 1, 2018ere not compleThe Company ned in IFRS 15. enue recognitioequired.
cognition andfective for ann9 which resultuments.
nd it replaces ses‐Incentivesets out the pres to account er IAS 17. Theonal computent date of a leepresenting the required to sght‐of‐use asssure the leaseease payments rally recognise
ubstantially une same classific. rs to make mobeginning on ossee can choosstandard’s tran
tatements 17 (UnauditedD”), except per sha
___________
sed Interim Co
with Customed disclosures fo8. The Companeted at the datcompleted an Based on th
on. As a result
measuremennual periods beted in no mate
IAS 17 Leasesand SIC‐27 Ev
rinciples for thfor all leases ue standard incrs) and short‐tase, a lessee we right to use eparately recoet. liability upon resulting from
e the amount o
nchanged fromcation principle
re extensive dior after 1 Januse to apply thensition provisio
) are amounts and a
__________
nsolidated Fin
ers” which repor revenue. Thny adopted IFRte of initial appn assessment ois review, therof the adoptio
nt, impairmeneginning on orerial changes
s, IFRIC 4 Detevaluating the Suhe recognition,under a single ludes two recoterm leases (i.will recognise athe underlyingognise the inte
the occurrencm a change in aof the remeasu
m today’s accoe as in IAS 17 a
isclosures thanuary 2019. Earle standard usions permit cert
as otherwise state
___________
ancial Stateme
places IAS 18 he new standaRS 15 on Januaplication, thus of its revenuere were no maton of IFRS 15, n
t and derecor after January in the measur
ermining whethubstance of Tr, measuremenon‐balance shognition exem.e., leases witha liability to mg asset during erest expense
ce of certain evan index or raturement of the
ounting under and distinguish
n under IAS 17y application iing either a futain reliefs.
ed)
__________
ents Q2 2018|
“Revenue”. IFard was effectiary 1, 2018 usiprior years' fin streams and terial changes no cumulative
gnition on fin1, 2018. On Jarement and ca
her an Arrangeransactions Invnt, presentatioeet model sim
mptions for lesh a lease termmake lease paythe lease termon the lease li
vents (e.g., a ce used to detee lease liability
IAS 17. Lessoh between two
. s permitted, bull retrospectiv
_____
7
FRS 15 ive for ng the nancial major to the effect
nancial anuary arrying
ement volving on and milar to sees –
m of 12 yments m (i.e., iability
change ermine y as an
ors will o types
but not ve or a
NA(T
_
M
3.
Notes to the CoAs of and for thTabular amounts a
___________
Madalena Ener
Property, P
USD 000s
Cost At DecemAdditions Disposals Effect of cAt DecemAdditions Effect of cAt June 30
USD 000s AccumulaAt DecemDepreciatiImpairmenDisposals Effect of cAt DecemDepreciati
At June 30
USD 000s Net book At DecemAt June 30
At June 30,
The depletidepletable producing rand probab
During the producing rThe change
ondensed Interhe Six Months are stated in thous
__________
rgy Inc.
Plant and Equi
ber 31, 2016
hange in foreigber 31, 2017
hange in foreig0, 2018
ted depreciatiber 31, 2016 ion and depletnt
hange in foreigber 31, 2017 ion and deplet
0, 2018
value ber 31, 2017 0, 2018
2018 and 2017
on expense cabase, $3.2 mreserves (June ble reserves).
first quarter oreserves would is considered
rim ConsolidatEnded June 30sands of United St
___________
ipment (“PP&E
gn exchange ra
gn exchange ra
ion and deplet
tion
gn exchange ra
tion
7, Madalena d
alculation for tillion for estim30, 2017 ‐ $8
of 2018 the cod be more appa change of th
ted Financial St0, 2018 and 20tates dollars (“USD
__________
Condens
E”)
ates
ates
tion
ates
etermined the
he three and smated future 83.5 million for
ompany determropriate than phe estimation t
tatements 17 (UnauditedD”), except per sha
___________
sed Interim Co
Oil and NaGas A
1393
143
144
Oil and NaGas A
(86(14
(22
(123
(3
(126
19
1
ere were no im
six months perdevelopment r estimated fu
mined that theproved and protechnique, and
) are amounts and a
__________
nsolidated Fin
atural Assets
9,535 3,866
‐‐
3,401
1,096 ‐
4,497
aturalAssets
6,934) 4,582)
‐2,206)
‐3,722)
3,240)
6,962)
9,679
7,535
mpairment indic
riod ended Juncosts associature developm
e use of proveobable reserved the effect is r
as otherwise state
___________
ancial Stateme
Corporate
2,059
54 (34) 42
2,121
36 1
2,158
Corporate
(1,116) (326) 34
‐ 1
(1,407)
(93)
(1,500)
714
658
cators for any
ne 30, 2018 incted with provment costs ass
ed producing aes for the deplrecognized pro
ed)
__________
ents Q2 2018|
To
1413
145,
1,
146,
To
(88,0(14,9
(22,2
(125,1
(3,3
(128,4
20,
18,
of its CGUs.
cluded as part ved developedociated with p
and developedetion reservesspectively.
_____
8
otal
,594 ,920(34)42
,522
,132 1
,655
otal
050) 908)34
206)1
129)
333)
462)
,393
,193
of the d non‐proved
d non‐s basis.
NA(T
_
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4.
5
Notes to the CoAs of and for thTabular amounts a
___________
Madalena Ener
During the million and and equipm
During the tgain on disp
Exploration
USD 000s Cost At DecembAdditions Disposals At DecembAdditions
At June 30
E&E assets or probableE&E assets a
In January 2Este (“CASEwere $10 magreed upo
At June 30,
5. Assets Held
As a result proceeds, 6that date. Aall of the cequity inve
In January approximatgain on disp
In addition,the Companwith no resu
ondensed Interhe Six Months are stated in thous
__________
rgy Inc.
three and six $0.4 million) o
ment.
three month pposal of assests
n and Evaluatio
ber 31, 2016
ber 31, 2017
0, 2018
consist of the e reserves. Addare not deprec
2017, the ComE”) to Pan Ammillion and PAEn work progra
2018 and 2017
d for Sale and I
of the disposa6.2 million comAt December 3common sharestment, but as
2017, the Coely $0.5 millioposal of assets
and pursuantny sold the remulting gain or l
rim ConsolidatEnded June 30sands of United St
___________months perio
of directly attri
period ended Jus of $0.8 millio
on Assets (“E&
Company’s inditions represeciated or deple
mpany sold 55%merican EnergyE agreed to cam (“Work Prog
7, Madalena d
nvestments
al of the non‐cmmon shares o31, 2016, and ge investment is assets held fo
ompany sold 1on, and realizefor the twelve
t to a purchasemaining 4.7 moss on sale.
ted Financial St0, 2018 and 20tates dollars (“USD
__________
Condens
od ended Junebutable gener
une 30, 2017 ton.
&E”)
tangible exploent the Compaeted.
% of its previoy LLC, Sucursalrry Madalena gram”) (note 1
etermined the
core Canadian of Point Lomagiven the liquidin Point Loma,or sale (“AHFS”
1.5 million of d a gain on sae months perio
e and sale agreillion common
tatements 17 (UnauditedD”), except per sha
___________
sed Interim Co
e 30, 2018, apral and adminis
the Company s
oration projectany’s share of
ously held 90%l Argentina (“Pshare of capit5).
ere were no im
assets on June, which were dity challenges, these comm”) and recorded
the Point Loale of approximod ended Decem
eement datedn shares in Poi
) are amounts and a
__________
nsolidated Fin
proximately $stration costs w
sold casing from
s in Argentina costs incurred
% working intePAE”). Gross ptal cost up to $
mpairment indic
e 28, 2016 therecorded as as faced by the on shares wed at fair value
ma common mately $0.1 mmber 31, 2017
April 21, 2017nt Loma for g
as otherwise state
___________
ancial Stateme
$0.1 million anwere capitalize
m Valle Morad
pending deted on E&E asset
rest (“WI”) in proceeds befo$5.6 million ov
cators relating
e Company recn equity accouCompany and re no longer aamounting to
shares for neillion which is 7.
7 with an armross cash proc
ed)
__________
ents Q2 2018|
nd $0.3 (2017ed to property
do field resultin
49,
(10,0
39,82,4
42,2
rmination of pts during the p
Coirón Amargre transactionver the course
to E&E assets
ceived as part unted investm the intention accounted for $1.3 million.
et cash proceerecorded as p
s‐length third ceeds of $0.8 m
_____
9
‐ $0.1 , plant
ng in a
340 529 000)
869 418
287
proven period.
go Sur‐n costs e of an
.
of the ment at to sell as an
eds of part of
party, million
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6
7
Notes to the CoAs of and for thTabular amounts a
___________
Madalena Ener
6. Long‐term D
Argentina
The credit fFebruary 3,borrowing r
Canada
On May 8, (“Hispania”Peñafiel is dexpected toprovide the$16.5 millio
The Workinpurposes. Imonths afte
The Capex each drawdinto units oa Common Common Shvolume wedrawdown Warrants isafter the daand interesis limited in
Both loans a
On SeptemInternationCorporate F8, 2017 for the terms th
As a June 32017.
7. Other Long‐
Other long‐value. The 31, 2017 – $
ondensed Interhe Six Months are stated in thous
__________
rgy Inc.
Debt and facili
facility with Ind 2017. The loarate of 32.6% a
2017, Madalen), a private, fadirector, whicho alleviate Mae Company accon.
ng Capital Loannterest accrueer an advance
Loan is a multdown and accrf the CompanyShare purchashare. The Capeighted averag(“Conversion ssued upon conate of issuancet owing hereu some circums
are secured, lim
mber 13, 2017,al Capital LimFinance Manuaan amount uphereof.
30, 2018, neith
‐term Assets
‐term assets along‐term rece$0.2 million).
rim ConsolidatEnded June 30sands of United St
___________
ity availability
dustrial and Coan incurred intat the time it w
na entered intamily‐owned Sh provides for adalena’s liquidcess to growth
n is a multi‐dres at 7% per anof funds.
ti‐drawdown crued interest ry (“Units”) withse warrant (“Wex Loan is cone price (“VWAPrice”) in respnversion is alsoe. Both Hispaninder into Unitstances.
mited to the C
the shareholited as a newal) of the Comp to $16.5 mill
her loan has be
re comprised oeivables prima
ted Financial St0, 2018 and 20tates dollars (“USD
__________
Condens
ommercial Banterest at the vwas paid out.
o a series of aSpanish energya package of dity challengeh capital for dr
rawdown facilnnum. Principa
convertible loarepayable thirth each Unit coWarrant”), withvertible basedAP”) of the Copect of the Como at a 5% premia and Madalets on or before
ompany’s inte
ders of the Cow "Control Perpany. In connlion is now ava
een drawn. Th
of long‐term rarily relate to A
tatements 17 (UnauditedD”), except per sha
___________
sed Interim Co
nk of China (Arvariable rate o
greements (thy Company andebt and mezs through a Willing and inve
ity, which is aal and interest
an. The loan sity‐six months omprised of onh each Warrand on a conversommon Sharesmmon Shares mium to that 2na have the rige repayment, a
rests in the Pu
ompany passerson" (as suchnection therewailable to be d
e Company ha
receivables forARS denomina
) are amounts and a
__________
nsolidated Fin
rgentina) S.A. of BADLAR plus
he “Transactionnd a related pzzanine financiWorking Capitastment activit
available to bet on each draw
imilarly accrueafter drawdowe common shant entitling thesion price equas on the last comprising th
20‐day VWAP. ght to convertalthough Mada
uesto Morales
ed an ordinary term is definwith, the convedrawn upon by
as no bank deb
r which the faiated taxes rece
as otherwise state
___________
ancial Stateme
of $1.6 millions approximate
ns”) with Hisparty of the Coing of up to $2al Loan of up ies through a
e used for genwdown will be
es interest at 7wn. The Capexare (“Commone holder to pual to a 5% pretrading date phe Units. The eThese Warrant the whole or alena’s right to
concession.
y resolution aned in the TSXertible loan agy the Company
bt in Canada a
ir value approxeivable of $0.2
ed)
__________
ents Q2 2018|
n was fully repely 8.8%, result
ania Petroleumompany, wher23 million whito $6.5 millioCapex Loan of
eral working ce repayable thi
7% per annumx Loan is conven Share”) and 0rchase an addmium to the 2prior to a parexercise price nts expire 18 mpart of the pro compel conv
pproving KD EX Venture Excgreement datey in accordanc
at June 30, 201
ximates the ca2 million (Dece
_____
10
aid on ting in
m S.A., e José ch are on and f up to
capital irty‐six
m, with ertible 0.22 of itional 20‐day rticular of the
months incipal version
Energy change d May e with
18 and
arrying ember
NA(T
_
M
8
Notes to the CoAs of and for thTabular amounts a
___________
Madalena Ener
8. Convertibl
The Hispancommon shentitling thconversion Shares on tShares comthat 20‐daywill have thbefore repa
In conjunctwhich requJune 2017 months froentitles the4,758,333 wrespectively
The Compawarrants (2
On July 13,convertible date. The dcommon shDecember 3end. The Coindebtedneinsiders parparties.
These debedebt compothe contracequivalent substantiallissuance, thcharge reco
ondensed Interhe Six Months are stated in thous
__________
rgy Inc.
le Debentures
ia Capex Loan hare ("Commoe holder to pprice equal tothe last tradin
mprising the Uny VWAP. Thesehe right to coayment, althou
ion with the Tires the Comp(see notes 7 am the date ofe holder to puwarrants issuedy.
any expensed 017 – $26 tho
, 2016, the Codebentures, n
debentures arehare, any time 31 and June 30ompany may, ess. Such reparticipated in th
entures are a leonents must bctually determto that whichy the same che liability comorded in financ
rim ConsolidatEnded June 30sands of United St
___________and Warrants
will be conven Share") and purchase an ado a 5% premiung date prior tnits. The exercie Warrants wilnvert the whough Madalena's
Transactions enpany to issue and 13). Each f issuance. Eaurchase one cd was $0.145/s
$90 thousandusand). On a Y
ompany compnet of fees, pre convertible inafter January 0. Interest accrat its option aayments involvhe private plac
evel III financiae bifurcated. T
mined stream h the market wcash flows, onmponent accree (income) exp
ted Financial St0, 2018 and 20tates dollars (“USD
__________
Condens
s
rtible into unit0.22 of a Comdditional Comm to the 20‐dto a particularse price of thel expire 18 moole or part of s right to comp
ntered into wisix monthly trmonthly trancach tranche wiommon shareshare, $0.165/
d for the threeYTD basis, the C
leted a privaterimarily to insinto common s13, 2017. Interrued to Decemand upon provve premiums cement, the te
al liability withThe value assigof future cashwould apply tn the same teetes up to its penses in the c
tatements 17 (UnauditedD”), except per sha
___________
sed Interim Co
ts of the Commmon Share pumon Share. Tay volume wer drawdown (e Warrants issuonths after thethe principal pel conversion
ith Hispania, tranches of shache includes 4ill expire 18 me of the Comp/share, $0.18/s
e months perCompany expe
e placement oiders or existinhares of the Crest on the debmber 31, 2017 viding notice tothat reduce arms and cond
h an embeddedgned to the liah flows discouto an instrumeerms, but withprincipal valueconsolidated st
) are amounts and a
__________
nsolidated Fin
pany ("Units")urchase warranThe Capex Loaeighted averag"Conversion Pued upon conve date of issuaand interest o is limited in so
he Company eare purchase w4,758,333 warmonths from thpany. The exershare, $0.17/sh
riods ended Juensed $0.5 mill
of $1.2 millionng shareholdeCompany at a cbentures is payamounting to o the debentuas the date toitions were th
d conversion feability on July unted at 15%,ent with comphout the conve using the eftatements of lo
as otherwise state
___________
ancial Stateme
) with each Unnt ("Warrant")n will be conge price ("VWAPrice") in respversion will be ance. Both Hispowing hereundome circumsta
entered into a warrants to Hirrants that arehe date of issurcise price for hare, $0.17/sh
une 30, 2018 ion (2017 – $2
n (CAD $1.6 mrs, with a Junconversion priyable semi‐ann$0.1 million w
ure holders, reo maturity ape same as tho
eature. As a re13, 2016 was t, being the raparable credit version optionffective interesoss.
ed)
__________
ents Q2 2018|
nit comprised o), with each Wvertible basedAP") of the Coect of the Coat a 5% premipania and Madder into Units ances.
services agreeispania commee exercisable auance. Each wthe six trancare and $0.18/
in relation to 26 thousand).
million) 12% see 30, 2019 mace of CAD $0.2nually, in arreawas fully paid apay the outstapproaches. Altose available to
esult, the equitthe present vaate estimated status and pn. From the dst method, wi
_____
11
of one Warrant d on a mmon mmon ium to dalena on or
ement encing after 6 warrant hes of /share
these
ecured aturity 25 per ars, on at year anding hough o third
ty and alue of to be rovide ate of th the
NA(T
_
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9
10
Notes to the CoAs of and for thTabular amounts a
___________
Madalena Ener
The followin
USD 000s At DecemAccretion ConvertedImpact of At June 30
9. Decommiss
The total Argentina majority ofobligationsthe currentbeen estimmarket ass
At June 30,the liabilitdecommiss
. Share Capit
The Compacommon shshare. No pdeclared by
Balance aCommonBalance aCommonBalance a
On Januaryconvertible
On Octobeconvertible
ondensed Interhe Six Months are stated in thous
__________
rgy Inc.
ng table recon
ber 31, 2017 (note 13) d debentures (nforeign exchan0, 2018
sioning Obligat
undiscounted only at June 3f the costs to b are recorded t obligations a
mated using exiessments of th
2018 an inflaty at June 30sioning obligat
tal
ny is authorizehares are entitpreferred shary the Company
at December 3 shares issued at December 3 shares issued at June 30, 201
y 17, 2018, 20e debenture op
er 30, 2017, 8e debenture op
rim ConsolidatEnded June 30sands of United St
___________ciles the princi
note 10) nge
tions
amount of c30, 2018 is apbe incurred betas a current lire expected tosting technolohe time value o
tion rate of 2.90, 2018 was ions are expec
ed to issue an tled to receiveres were outst.
1, 2016
1, 2017
18
00,000 commoption of $40 th
0,000 commoption of $16 th
ted Financial St0, 2018 and 20tates dollars (“USD
__________
Condens
ipal amount, li
ash flows reqpproximately $tween 2026 anability and theo be incurred bogy at current pof money and t
9% was used (D2.91% (Decem
cted to be invo
unlimited nume dividends astanding at Jun
on shares werhousand.
n shares werehousand.
tatements 17 (UnauditedD”), except per sha
___________
sed Interim Co
ability and equ
LiaCompo
quired to sett$22.7 million nd 2027. At June remainder ofby December 3prices and discthe risks specif
December 31, mber 31, 201iced in USD an
mber of comm declared by tne 30, 2018 or
e issued at a
e issued at a p
) are amounts and a
__________
nsolidated Fin
uity componen
abilityonent C1,274
33 (40) (59)
1,208
le Madalena’s(December 31ne 30, 2018, $3f $18.8 million 31, 2018. The dcounted using fic to each liab
2017 – 2.1%). 17 – 2.65%). nd settled throu
mon shares andthe Company r December 3
price of CAD $
price of CAD $
as otherwise state
___________
ancial Stateme
nts of the conv
Equity Component
76 ‐ ‐ ‐
76
s decommissio1, 2017 – $223.9 million of tas a long‐termdecommissiondiscount ratesility.
The risk free rThe majority
ugh payments
d preferred shand are entit1, 2017. No d
NumbeShar000
543,
543,
544,
$0.25 pursuan
$0.25 pursuan
ed)
__________
ents Q2 2018|
vertible debent
To1,
1,
oning obligatio2.7 million) withe decommissm liability, givening obligations that reflect c
ate used to disy of the Argin ARS.
ares. The holdled to one vodividends have
er of es 0s
ShaCapi000
780 238, 80
860 238,200 060 239,
nt to the exerc
nt to the exerc
_____
12
tures:
otal ,350 33
(40) (59) ,284
ons in th the sioning en that s have urrent
scount entine
ders of te per e been
re tal 0s ,973 16
,989 40
,029
cise of
cise of
NA(T
_
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11
12
13
Notes to the CoAs of and for thTabular amounts a
___________
Madalena Ener
Net Income
As at June following ta
Weighted shares ‐ baNet Loss fr000s Per share –operations
. Share‐basedDuring the employees
During the t
. Long‐term I
The LTIP econsolidatethousand, rreporting pe
At June 30,
. Finance (Inc
Finance (Inc
USD 000s Bank chargForeign exDecommis(note 9) Accretion debentureInterest (inFair value held
ondensed Interhe Six Months are stated in thous
__________
rgy Inc.
e (Loss) Per Sha
30, 2018, theable provides t
average numbasic – 000s rom continuing
– basic & dilutes ($/share)
d Compensatiothree and six of the Compan
three month p
Incentive Plan
expense record statements respectively (2eriod.
2018 the LTIP
come) Expense
come) and Exp
ges xchange loss (gssioning obliga
of debt portione issued (note 8ncome) and otchange on con
rim ConsolidatEnded June 30sands of United St
___________are ere is no resuhe weighted av
ber of common
g operations ‐
ed ‐ continuing
on months endedny.
eriod ended Ju
rded as part of loss for th
2017 – expens
liability was $1
es
enses are mad
ain) tions accretion
n of convertibl8) her expenses nvertible deben
ted Financial St0, 2018 and 20tates dollars (“USD
__________
Condens
lting dilutive iverage numbe
T
n
USD
g
d June 30, 201
une 30, 2018, n
of share‐basehe three and se of $20 thou
130 thousand (
de up of the fo
T
n
le
ntures
tatements 17 (UnauditedD”), except per sha
___________
sed Interim Co
impact of the er of common s
Three months June 30
2018
544,042
(3,514)
(0.01)
18, 11,400,000
no share based
ed and long‐tsix months enusand and $33
(December 31,
llowing:
Three months June 30
2018 122
1,065
‐
17 28
‐ 1,233
) are amounts and a
__________
nsolidated Fin
convertible dshares used in
ended0
2017
543,780
(5,449)
(0.01)
0 options were
d compensatio
term incentivended June 30, 3 thousand) an
, 2017 ‐ $49 th
ended0
2017 242211
50
16(143)
10386
as otherwise state
___________
ancial Stateme
debentures or the per share
Six moJ
2018
544,04
(4,13
(0.0
e issued to dir
on was capitaliz
e compensati 2018 was $8nd is revalued
housand).
Six moJ
2018 29
1,16
2
32
1,53
ed)
__________
ents Q2 2018|
share optioncalculations:
onths endedune 30
20
42 54
36) (8
01) (
rectors, officer
zed (2017 ‐ nil)
on expense i8 thousand an at the end o
onths endedune 30
2094 68
20
33 21
‐ 37
_____
13
s. The
17
43,780
8,716)
(0.02)
rs, and
).
in the nd $55 f each
17 546 435
114
34 (247)
150 1,032
NA(T
_
M
14
Notes to the CoAs of and for thTabular amounts a
___________
Madalena Ener
USD 000s Realized foUnrealizedTotal Currency e$1 USD = C$1 USD = A
4. Suplementa
Changes in
USD 000s Trade andOther curinventory Assets heTrade, taxImpact ofcapital Change inAttributab
OperatingInvesting Financing
(1) Change in no
Other cash f
USD 000s Interest paInterest reTaxes paid
ondensed Interhe Six Months are stated in thous
__________
rgy Inc.
oreign exchangd foreign excha
exchange rate aCAD ARS
al Cash Flow In
non‐cash work
d other receivarent assets, inc
ld for sale x and other payf foreign excha
n non‐cash worble to:
g activities activities activities
on‐cash working capita
flow informati
aid (income) eceived (incomd
rim ConsolidatEnded June 30sands of United St
___________
ge loss (gain) ange loss (gain)
at period end:
nformation
king capital
ables cluding
yables ange on workin
rking capital¹
al excludes the curren
on
e)
ted Financial St0, 2018 and 20tates dollars (“USD
__________
Condens
T
2
)
Thre
20183,
(3,7ng
(1,2
1,
t portion of long‐term
T
2
tatements 17 (UnauditedD”), except per sha
___________
sed Interim Co
Three months June 30
2018 ‐
1,065 1,065
e months endeJune 30
8 20,017 (
703 ‐
737) (
‐ (17) (
225) (48
,200(17) (
m debt, as this is consid
Three months June 30
2018 16 ‐
36
) are amounts and a
__________
nsolidated Fin
ended 0
2017 ‐
211 211
ed
0171,276)
(731) 809
2,550)
(109) 3,857)
4,042) 185
‐3,857)dered part of financing
ended
2017(45)
‐648
as otherwise state
___________
ancial Stateme
Six mo J
2018
1,161,16
$1.3$28.8
Six months June 3
2018 1,146
877 ‐
(2,899)
‐ (876)
(2,070) (6)
1,200 (876)
g activities.
Six moJu
2018 774
1,257
ed)
__________
ents Q2 2018|
onths ended June 30
2017‐
68 68
32 85
ended 0
20171,926
(840) 1,116
(5,490)
(285) (3,573)
(2,421) (1,152)
‐(3,573)
onths endedune 30
27 4 7 1
_____
14
7 (2) 437 435
$1.30 16.63
201757 ‐
,008
NA(T
_
M
15
Notes to the CoAs of and for thTabular amounts a
___________
Madalena Ener
. Commitme
Developmen
Coirón Ama
Madalena acosts duringgovernmenttheir proporsouthern po
In an explothrough an The amountand develoongoing com
Coirón Ama
PAE agreedrecourse bawould bear expendituredraw down
Pursuant to
USD
Conc(1) CommittOn November 1(2) Subject t
The new exwill be eligi
Curamhuele
U
Conce
ondensed Interhe Six Months are stated in thous
__________
rgy Inc.
nts and Other
nt and Explora
argo Norte (“CA
nd its partnersg the exploratt entity, receivrtionate share ortion of CA.
oitation or devassignment ofts due to Madpment phasesmmitments.
argo Sur Este (C
d, subject to casis, to be drawinterest at 7%e program. Traof $2.4 million
o the new arran
000s
cession committed values are reflect13, 2017 the companto the results in 2017
xploration andble to enter int
e Block (90% W
USD 000s
ession commitm
rim ConsolidatEnded June 30sands of United St
___________
Long‐term Lia
tion Commitm
A‐Norte”‐ 35%
s at the CA contion and evaluing a 10% carryof GyP’s WI. C
velopment phf GyP’s 10% inalena from Gys are containe
CASE ‐ 35% WI)
certain conditiwn‐down as re% per annum anansaction fees n and a repaym
ngements, Mad
tments at CASted at Madalena’s 35ny received the prov7 to be completed, be
evaluation peto a developm
WI‐operated)
ments
ted Financial St0, 2018 and 20tates dollars (“USD
__________
Condens
abilities
ments
WI)
ncession in theuation phase, y whereby all oCurrently, expl
ase, GyP is renterest in futuryP are recordeded in CA‐Norte
)
ons, to providequired to fundnd is repayableof $0.5 million
ment of $1.1 m
dalena work co
E 5% WI at December 3incial approval due tefore November 8, 2
ermit for CASEent concession
tatements 17 (UnauditedD”), except per sha
___________
sed Interim Co
e province of Nwith Gas y Peother partnersoration and ev
esponsible for re production d on Madalenae, the norther
de Madalena wd certain CASE e in five years fn were incurreillion as of Jun
ommitments a
20
31, 2017 plus Madaleo the re‐entry of we2019.
E expires on Nn.
20
‐
) are amounts and a
__________
nsolidated Fin
Neuquén are retróleo del Nes, including Mavaluation phas
r its 10% interrevenue streaa’s books as a rn part of CA
with a loan o capital expenfrom the net red to completee 30 2018.
t CASE were a
018
‐ ena’s proportionate ll Cas.x‐15 for $2.1 m
November 8, 20
018
as otherwise state
___________
ancial Stateme
responsible foreuquén S.A. (adalena, are reses are contain
rest of the inams to Madalereceivable. Cu, for which th
f up to $40 mditures. This lievenue generae this agreeme
mended as fol
2019(1)
1,787(2) share of GyP’s carrymillion.
019, following
2019
8,225
ed)
__________
ents Q2 2018|
r paying 100% “GyP”), a proesponsible for pned in CA‐Sur,
curred capitalena and its parurrently, exploihere are no c
million, on a limited recoursated from the cnt. There was
lows:
.
g which the pa
_____
15
of the vincial paying in the
l costs rtners. itation urrent
imited se loan capital a loan
artners
NA(T
_
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16
Notes to the CoAs of and for thTabular amounts a
___________
Madalena Ener
At Curamhuthe costs du
The Compa2019 undernotified thethe option t
Puesto Mo
USDConcessio
The Compacommitmen
Santa Victo
The contracThe secondbeen madeevaluation currently oexploration
El Chivil Blo
The concessprovince of which expir
El Vinalar B
Salta provinJanuary, 20facilities an
. Financial InThe Compaholds. The managemenhow they ar
ondensed Interhe Six Months are stated in thous
__________
rgy Inc.
uele, an exploruring the explo
any has proposr the Evaluatioe approval to eto extend this
orales Block (10
D 000s n commitment
ny is in discussnts in a new ex
ria Block (100%
ct can contain phase requiree. A performanpermit. On Nngoing with t permit.
ck (100% WI –
sion’s one yeaFormosa granred on May 1, 2
lock (100% WI
nce granted a018 the Compad wells have b
struments andny is exposed Board of Direcnt framework, re managed.
rim ConsolidatEnded June 30sands of United St
___________ration permit ioration phase t
sed a horizonton Lot Periodenter into the Eperiod for ano
00% WI‐operat
ts
sions with the xploration plan
% WI ‐ operate
up to three exed additional wnce bond of $ovember, 201he province o
– operated)
r extension expted a further s2017. The Com
I – operated)
block extensiny notified theeen mothballe
d Risk Manageto various riskctors has overapolicies and p
ted Financial St0, 2018 and 20tates dollars (“USD
__________
Condens
in the provinceto maintain its
tal multi‐frac r. On May 5th,Evaluation Lot other 2 years o
ted)
provincial authn.
ed)
xploration and work commitm$3.6 million is 17 an applicatof Salta for re
piry occurred osix month extempany is in disc
ion to file an e province of Sed.
ement ks that arise frall responsibiliprocedures. Th
tatements 17 (UnauditedD”), except per sha
___________
sed Interim Co
e of Neuquén, 90% WI.
re‐entry in CH. 2017, by mePeriod. Once tr to enter into
20124,700
hority for a re‐
evaluation phments of $4.0 m
in place overtion has been conversion of
on September nsion to negotcussions with t
investment plSalta that it is n
rom its busineity for the estae following ou
) are amounts and a
__________
nsolidated Fin
the Company
.x‐1 for $8.2 means of Resoluthis commitmethe Exploitatio
180
schedule and c
hases, of whichmillion for whicr the commitmsubmitted an
f the Explorati
7, 2016 and dutiate a 10‐yearhe province of
lan, which expnot interested
ess environmenablishment anutlines the upd
as otherwise state
___________
ancial Stateme
y is responsible
million to be inution 119/17, ent is completeon Period.
2019 7,000
conversion of t
h the second ech no qualifyinments under tnd negotiationion Area into
uring the last qr development f Formosa.
pired on Nove in a contract
nt and the finad oversight ofdate to risk exp
ed)
__________
ents Q2 2018|
e for paying 10
ncurred by Mathe Province ed, the compa
Beyon600
the present
xpired in Aprilg expenditurethis explorations continue ana non‐conven
quarter of 2016period extens
ember 11, 201extension. El V
ancial instrumf the Companyposures and ex
_____
16
00% of
arch 9, finally ny has
nd0
2015. s have on and nd are ntional
6, the sion,
16. On Vinalar
ents it y’s risk xplains
NA(T
_
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1
Notes to the CoAs of and for thTabular amounts a
___________
Madalena Ener
Foreign Exc
The table bethe USD, thARS and CAand six moexchange ga
USD
Average CAAverage APeriod endPeriod end(1) Differences
Liquidity risThe Compa
At June 30,2017 ‐ $1.2Canada and
Market riskChanges in fluctuations Commodity
The Governthe Compan30, 2018 (230, 2018 (2Argentina, "Agreementstated that consecutive10 consecutwas reachebetween re
17. Supplemen
Madalena’prepared pin both the
ondensed Interhe Six Months are stated in thous
__________
rgy Inc.
change Fluctua
elow provides he Argentine PeAD changes relanths ended Juains and losses
AD to USD RS to USD d CAD to USD d ARS to USD s calculated from t
sk ny’s liquidity r
2018, cash a2 million), andd Barbados, and
k commodity p
s in its net earn
y price risk
nment of Argenny have paid a017 ‐ $55.90),2017 ‐ $48.58)at the request") allowing foin case internae days, the Agrtive days, the d and the agrfiners and pro
ntal disclosure
’s condensed primarily by nae operating an
rim ConsolidatEnded June 30sands of United St
___________ations
various exchaneso (“ARS”), aative to the USune 30, 2017. s recorded in t
20
0.70.00.70.0
the numbers withi
isk is highlighte
nd cash equiv is held in ARd $227 thousa
prices, interestnings and in th
ntina sets the ban average uno official Meda). In January 2st of the goveor convergenceational Brent peement wouldAgreement wreement finalizducers conside
e
interim consoature of expennd general and
ted Financial St0, 2018 and 20tates dollars (“USD
__________
Condens
nge rates that nd the CanadiSD in the threeForeign exchahe condensed
Three monthsended June 30
018 201
775 0.7043 0.0759 0.7035 0.0in the table are du
ed in note 2.
alents of $1 mRS. Cash and cnd is held in U
t rates and foe fair value of
benchmark (Mofficial crude onito crude oil 2017, Madalenernment, havee with internatpricing reachedd be suspendedould be reviewzed in Octobeering the intern
lidated statemses, with the ed administrativ
tatements 17 (UnauditedD”), except per sha
___________
sed Interim Co
illustrate the qan dollar (“CAe and six montange changes interim conso
s
%17 Change(1
744 (4.2%064 33.1771 1.5%060 42.4ue to rounding.
million was depcash equivalenSD and $10 tho
oreign currencits financial as
Medanito) priceoil price of $66averaged $72na was advisee signed a 201tional Brent prd and remainedd. And, in casewed. On Septeer, 2017. As fnational Brent
ments of incomexception of emve expense lin
) are amounts and a
__________
nsolidated Fin
quarterly foreiAD”). The tableths ended Junin CAD and Alidated statem
Six m% 1) 2018
%) 0.781% 0.04% 0.754% 0.03
posited with bnts of $0.2 milousand is held
cy exchange rassets and liabili
e for oil. Althou6.30 per barrel.69 per barrel ed that a majo17 Medanito ricing over thed above the me international ember 13, 201rom October, price as a refe
me (loss) and mployee compe items on the
as otherwise state
___________
ancial Stateme
gn exchange fe illustrates thee 30, 2018 comARS impact thements of incom
months endedJune 30
8 2017
83 0.74946 0.06459 0.77135 0.060
banks in Argenllion was depod in CAD.
ates can expoities.
ugh the Argent for the three for the three ority of producrude oil price coming montmonthly MedanBrent pricing f7 the above smarket prices
erence.
comprehensivpensation costse condensed i
ed)
__________
ents Q2 2018|
luctuations bee impact of bompared to thee unrealized fe (loss).
d %
Change(1)
9 (4.4%)4 27.3%1 1.5%0 42.4%
ntina (Decembosited with ba
ose the Compa
tine refiners usmonths endedmonths endedcers and refincing agreemenths. Such agreenito floor price fell below $45.uspension cons were agreed
ve income (loss which are incnterim consol
_____
17
tween oth the e three foreign
ber 31, anks in
any to
sed by d June d June ners in nt (the ement for 10 .00 for ndition d upon
ss) are cluded idated
NA(T
_
M
1
Notes to the CoAs of and for thTabular amounts a
___________
Madalena Ener
statementemployee condensed
USD 000
OperatinCompensTransportMaintena General &CompensOther
18. Revenue
Madalena in the casoutlined incrude oil aincluding p All of the C
USD 000Crudo OilNatural gOil and na
ondensed Interhe Six Months are stated in thous
__________
rgy Inc.
s of income (compensationd interim conso
s
g expenses sation costs tation and proance, workove
& administratisation costs
generally recoe of services, n contractual and natural gasproduct quality
Company’s sign
s l gas atural gas sale
rim ConsolidatEnded June 30sands of United St
___________loss) and comn costs includeolidated statem
cessing rs and other
ive expenses
ognizes oil andas contractedgreements ans is based on thy and location.
nificant revenu
s
ted Financial St0, 2018 and 20tates dollars (“USD
__________
Condens
mprehensive ind in the operaments of incom
d natural gas red services are d are based onhe commodityCommodity p
ue streams are
tatements 17 (UnauditedD”), except per sha
___________
sed Interim Co
come (loss). Tating and geneme (loss) and co
Three montJune 3
2018
1,2101,0141,995
4,219
361 1,107 1,468
evenue when tperformed. Pn fixed or varia price in the mrices are based
located in Arg
Three montJune 3
2018 9,063 739
9,802
) are amounts and a
__________
nsolidated Fin
The following eral and adminomprehensive
hs ended30
2017
1,0401,9573,1936,190
7722,1792,951
title passes froProduction revable price commonth of produd on monthly o
gentina and inc
hs ended30
2017 8,2691,0889,357
as otherwise state
___________
ancial Stateme
table details tnistrative expenincome (loss).
Six moJ
2018
0 2,07 2,73 4,90 9,6 2 89 2,11 2,9
om Madalena venues are purmponents. The uction, adjusteor daily market
clude the follow
Six moJ
2018 9 17,98 1,47 19,4
ed)
__________
ents Q2 2018|
the amount onse line items .
onths endedune 30
2017
065 2722 3904 5691 11
829 2161 2990 4
to the purchasrsuant to the transaction pred for various ft indices.
wing:
onths endedune 30
2017935 17478 2413 19
_____
18
f total in the
7
2,045 3,944 5,715 1,704
2,028 2,895 4,923
ser or, terms
rice for factors
7 7,679 2,014 9,693