Triangle Petroleum Corporation
OTC Bulletin Board : TPLM

Triangle Petroleum Corporation

October 05, 2009 08:01 ET

Triangle Petroleum Commences Seismic Program and Provides Company Update

CALGARY, ALBERTA--(Marketwire - Oct. 5, 2009) - Triangle Petroleum Corporation (the "Company" or "Triangle") (TSX VENTURE:TPE)(OTCBB:TPLM) today reported commencement of a seismic program on its 475,000 gross acre Windsor Block in Nova Scotia, Canada.

Nova Scotia

Triangle has commenced a 30 kilometer, 2D seismic program on its Windsor Block in Nova Scotia, which the Company expects to begin interpreting in November. Triangle estimates the program cost at approximately $500,000. This seismic program will assess a geologic structure in the west-central area of the Windsor Block, where no seismic has yet been acquired. The Company believes that the best potential for both Horton Bluff gas shales and conventional reservoirs exists in areas with geologic structure. This seismic program, combined with completions of three previously drilled vertical exploration wells, should satisfy the first-year requirements of our 10-year production lease.

Since the last operational update, the Company performed a diagnostic micro-frac that was designed to test fracture parameters in the upper section of the E-38-A well. Previous tests in the lower section of the well had shown a tendency towards horizontal fracturing. The upper section test indicated lower stress and vertical fracturing. As this was a diagnostic frac in a very low permeability zone, no gas flow was expected, and none was detected. The Company is now working with these results to determine if future completions in this well may be viable, as well as picking the next drilling locations and completion strategies.

The Company is actively seeking partners to participate in the next round of drilling in the Windsor Block. The firm of Jefferies, Randall and Dewey of Houston has been engaged to assist in this process. Triangle will consider either a large-area, multi-well farmout of the entire 475,000 gross-acre Windsor Block, or individual farmouts of five distinct exploration prospect areas identified within the Windsor Block.

Western Canada

Over the past two years Triangle's technical team has also been working to identify high-potential shale prospects in Western Canada, and is now in a position to embark on joint venture activities on several plays where its shale expertise can provide a competitive advantage. The Company is actively seeking partners to participate in an exploration program focused on both oil and gas from shales in Western Canada.


Since July 31, 2009, Triangle has sold a significant portion of its interest in the seismic and land held in the Fayetteville shale trend of Arkansas for US $0.7 million. Triangle intends to sell the balance of its non-core properties as market conditions permit. The Company's cash balance at September 30, 2009 was approximately US $6.2 million.

Howard Anderson, Triangle's President and Chief Operating Officer said, "We are in the unique position of having multiple exploration prospects in Nova Scotia, where there is a distinct economic advantage to producing natural gas. Our large land block, 10-year lease, proximity to a premium-priced gas market in the northeastern U.S., and an acceptable royalty regime all contribute to a favorable exploration environment. In addition, using a joint venture to gain entry to specific shale plays in Western Canada will provide portfolio diversification. This approach is consistent with the strategy we employed to establish our position in the Windsor Block in Nova Scotia."

About Triangle Petroleum Corporation

Triangle is an exploration company focused on an emerging Canadian shale gas project covering 475,000 gross acres (413,000 net acres) in the Maritimes Basin in Nova Scotia through Elmworth Energy Corporation, its Calgary-based operating subsidiary. Triangle's common shares trade on the TSX Venture Exchange under the symbol TPE and on the OTC Bulletin Board under the symbol TPLM.

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 Company's planned drilling and evaluation program, operating costs and expectations of undiscovered resources. 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 and on SEDAR.

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