An anonymous director reports

MADALENA ANNOUNCES SECOND QUARTER 2013 FINANCIAL RESULTS AND OPERATIONS UPDATE

Madalena Energy Inc. has released unaudited interim consolidated financial statements and related management's discussion and analysis for the three and six months ended June 30, 2013. Selected financial and operational information is outlined here and should be read in conjunction with Madalena's unaudited interim consolidated financial statements and related MD&A, which are available for review under the company's profile on SEDAR and on the company's website.

                    SUMMARY FINANCIAL AND OPERATIONAL HIGHLIGHTS

                                        Three months ended       Six months ended
                                               June 30,               June 30,
                                          2013        2012        2013       2012    
Financial                                                                        
Oil and gas revenue                 $3,877,254 $   374,734 $ 7,486,997 $   771,507
                                    ---------- ----------- ----------- -----------
Net (loss)                          $ (320,306)$(1,847,894)$(2,640,034)$(3,015,349)
                                    ========== =========== =========== ===========
Per share -- basic and diluted           (0.00)      (0.01)      (0.01)      (0.01)
Operating                                                                        
Average daily production                                                         
Crude oil and condensate -- bbl/d          297          66         307          64
Natural gas -- mcf/d                     3,491           -       3,086           -
NGLs -- bbl/d                              140           -         125           -
Total  -- boe/d                          1,020          66         946          64
Average sales prices                                                             
Crude oil and condensate -- $/bbl   $    78.77 $     76.64 $     78.70 $     76.92
Natural gas -- $/mcf                $     3.57 $         - $      3.45 $         -
NGLs -- $/bbl                       $    47.91 $         - $     52.66 $         -
Total -- $/boe                      $    41.80 $     76.64 $     43.72 $     76.92
Operating netbacks                                                               
$/boe                                    13.72        9.57       14.48        4.34

Second-quarter 2013 highlights

As at June 30, 2013, the company continues to maintain a strong balance sheet with a positive working capital of $7.7-million, an unutilized credit facility of $13-million and increasing production levels.

Postsecond quarter, Madalena supplemented its existing working capital with a $7.25-million equity financing that closed in early July, 2013.

International operations in second quarter 2013 -- Neuquen basin, Argentina

In June, 2013, the exploration period for Madalena's 90-per-cent working interest Curamhuele block was extended by way of an official decree signed by the Province of Neuquen. This one-year extension allows Madalena until Nov. 8, 2014, to satisfy the remaining work commitments of approximately $13.8-million (U.S.) plus VAT on the block providing the company enhanced financial flexibility.

The company has also retained RBC Capital Markets as its exclusive financial adviser in connection with the company's three blocks located within the Neuquen basin of Argentina and is currently conducting a joint venture process focused on identifying a potential joint venture partner(s) to accelerate exploration and development activities on the Curamhuele block.

Shot two 3-D seismic programs at Coiron Amargo Sur (south portion of the block). The Coiron Amargo block (both north and south regions) now have extensive 3-D seismic coverage.

Work continued on construction of three surface facility components at Coiron Amargo Norte which are anticipated to reduce future operating costs, conserve all produced solution gas and provide the facility operating capacity to bring on additional volumes from planned drilling targeting light oil in both the Vaca Muerta shale and Sierras Blancas formations in 2013 and beyond.

On the Cortadera block in the province of Neuquen, the joint venture submitted a new proposal during the first quarter of 2013 to formalize a multiyear agreement for the extension of the initial exploration period and inclusion of subsequent exploration periods. Throughout the second quarter, the joint venture has continued to progress discussions related to a multiyear agreement and has recently agreed upon a work plan for the block.

Domestic operations in second quarter 2013 -- greater Paddle River area, Alberta, Canada

At Paddle River, two 100-per-cent-working-interest Ostracod horizontal oil wells were equipped with the solution gas tied in to existing Madalena facilities. These wells produced at restricted rates during the second quarter pending completion of a pipeline twinning project and third party compression upgrades that are currently in the final stages of completion to accommodate increased volumes from these wells and future horizontal development wells in the area.

2013 operations update and outlook -- international and domestic

Operational activity on the Coiron Amargo block in the Neuquen basin, Argentina, for the remainder of 2013 involves the drilling of two additional gross wells (CAS.x-14 and CAS.x-15), the drilling of one re-entry horizontal lateral (CAN.xr-2h) into the conventional Sierras Blancas light oil reservoir, and one or two workovers. Except for the company's first horizontal in the Sierras Blancas, drilling, completions and workover activities will focus predominantly on unconventional shale delineation in the Vaca Muerta.

The CAS.x.14 vertical well in the southern portion of the Coiron Amargo block has recently finished drilling and has now been cased with approximately 105 metres of Vaca Muerta shale on logs. Completion activities on this well are expected to commence as part of a program of numerous Vaca Muerta zone completions after the CAS.x-15 well is drilled in the fourth quarter of 2013.

On the Cortadera block the Company plans to re-enter the CorS.X-1 well to conduct re-entry work to evaluate an uphole zone of interest in the wellbore. Re-entry operations at CorS.X-1 are planned to commence in the fourth quarter.

In Canada, in support of the company's plan to recommence drilling operations in the greater Paddle River area subsequent to breakup, Madalena conducted upfront survey, permitting and in some cases road and lease preparation work associated with additional horizontal development locations on the company's multiple resource plays.

The company continues to develop its Ostracod oil project with one additional 100-per-cent-working-interest Ostracod horizontal well currently being drilled from an existing pad site that will benefit from its close proximity to the newly built pipeline and third party compression upgrades in the area.

At Wildwood, the company plans to recommence its evaluation operations of its Nordegg horizontal well as soon as road and lease conditions permit.

We seek Safe Harbor.