Madison PetroGas Ltd. updates operations in Egypt

The 2014 drilling campaign began the first week of May 2014. One high risk exploration well and three Meseda development wells have been drilled to date. The exploration well, Raboul South-1X, was located to the western edge of the H Block and was found to be dry. The three Meseda development wells are all successful oil wells.

Meseda-14H was drilled as an appraisal well to test the NE limit of the field. The well encountered 128 ft. of net oil pay in the Asl sand. The well was put on production on June 1, 2014 and is producing at an average of 1,000 bopd with 1% WC (190 bopd net to Madison).

Meseda-10H was drilled as an appraisal well to test the NW limit of the Meseda field. The well encountered 136 ft. of net oil pay in the Asl sand. It was put on production on July 15, 2014 and is producing an average of 850 bopd of clean oil (160 bopd net to Madison).

Meseda-4H was drilled as an appraisal well to test the SW limit of the Asl reservoir in the Meseda Field. The well encountered 17 ft. of net oil pay in the Asl sand and rig released a week ago. Production is expected to start shortly and we anticipate an average production rate of 250 bopd (50 bopd net to Madison).