Triangle Petroleum Provides Update on Its Canadian Projects
Triangle Petroleum Corporation continues to actively explore in Western Canada through its wholly owned Canadian subsidiary, Elmworth Energy Corporation (“Elmworth”). Elmworth’s corporate objective is to focus on building a solid production and cash flow base for the Company in the near term. The Alberta Deep Basin drilling programs will complement the longer term production opportunities being pursued in the core shale gas projects of the Barnett Shale in Texas and the Fayetteville Shale in Arkansas.
Current Well Programs
Elmworth is pleased to provide an update on its continuing drilling programs in the Alberta Deep Basin. Elmworth, in conjunction with its industry partners, has drilled and cased a 3,200 meter (10,500 feet) test well in the Kakwa area (northwestern Alberta). Multiple gas bearing primary and secondary targets were penetrated by the test well. A completion program is currently being finalized with the operator and the field activity is expected to commence this month. A nearby pipeline will be available to move production volumes subsequent to the final completion evaluation and production testing. A follow-up location on available acreage is currently under consideration by the partner group. Elmworth is participating in the farm-in agreement by paying 20% of the costs to earn an 18% before-payout (BPO) working interest and a 12% after pay-out (APO) working interest, as well as earning a 12% working interest in a prospective adjoining section. Revenue from this project is projected to commence in the first half of 2007.
Elmworth is also currently drilling a Company operated 2,950 meter (9,900 feet) Fernie test well in the Wapiti area of the Alberta Deep Basin. This Cretaceous test location spudded on December 19 is located within Elmworth’s previously licensed and interpreted 120 square mile 3-D seismic survey. Elmworth has a 50% working interest in this project along with two other industry partners. Elmworth has access to a total of 3,200 acres related to this drilling opportunity.
Elmworth participated in a previous drilling opportunity in the Wapiti area of the Alberta Deep Basin at 01-22-065-08W6. The well, which tested the shallower Cretaceous sands, was successfully drilled, cased and completed. The results of the production testing warrant a pipeline connection to the well. The operator is proceeding to have the well placed on production. Elmworth earned a 50% interest in the test well by paying a 66% share of the costs. Provisions in the operating agreement provide for access to follow-up lands by committing to further drilling.
Elmworth plans to continue its Alberta Deep Basin program at a measured pace. The Company has an extensive inventory of prospects and believes that industry conditions may contribute to land becoming more readily available for farm-in opportunities.
Ron Hietala, President of Triangle’s operating subsidiaries states, “In addition to the production and cash flow from these Deep Basin wells, we have conducted a number of technical studies on potential shale gas opportunities in Canada. We anticipate participating in new Canadian shale gas projects in 2007.”
About Triangle Petroleum Corporation
Triangle is an exploration company focused on the Barnett Shale project in Texas, the Fayetteville Shale project in Arkansas, resource plays in the Deep Basin area of Western Canada and in select areas of the western United States. An experienced team comprising technical and business skills has been formed to optimize the Company’s opportunities through its operating subsidiaries, Triangle USA Petroleum Corporation in the United States and Elmworth Energy Corporation in Canada.
For more information please visit www.trianglepetroleum.com.
Cautionary Note to U.S. Investors — The United States Securities and Exchange Commission (“SEC”) permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this press release, such as probable, possible and potential, that the SEC’s guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 10-KSB, File No. 0-51321, available from us at Suite 1110, 521 – 3 Avenue SW, Calgary, Alberta T2P 3T3 Canada. You can also obtain this form from the SEC by calling 1-800-732-0330.
On behalf of the Board of Directors,
TRIANGLE PETROLEUM CORPORATION
Mark Gustafson, President
Safe Harbor Statement. This news release includes statements about expected future events and/or results that are forward-looking in nature and subject to risks and uncertainties. Forward-looking statements in this release include, but are not limited to, the amount of funds the Company may receive, the Company’s proposed acquisition and development of properties, including drilling projects. It is important to note that actual outcomes and the Company’s actual results could differ materially from those in such forward-looking statements. Factors that could cause actual results to differ materially include the possibility that additional investments will not be made or that appropriate opportunities for development will not be available or will not be properly developed. For additional risk factors about our Company, readers should refer to risk disclosure contained in our reports filed with the Securities and Exchange Commission.
Contact:
Contacts: Triangle Petroleum Corporation Jason Krueger, CFA Corporate Communications (403) 374-1234 Email: info@trianglepetroleum.com
Website: http://www.trianglepetroleum.com
Source: TRIANGLE PETROLEUM CORPORATION
