Triangle Petroleum Corp
TRIANGLE PETROLEUM’S CEO OUTLINES CORPORATE AND EXPLORATION PROGRESS
Corporate News transmitted by DGAP – a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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For Immediate Release
TRIANGLE PETROLEUM’S CEO OUTLINES CORPORATE AND EXPLORATION PROGRESS
Calgary, Alberta – November 28, 2006 – Over the past 18 months, Triangle
Petroleum Corporation (the ‘Company’ or ‘Triangle’) (OTCBB: TPLM) has
progressed from a raw startup company to a thriving exploration company
that has drilling programs planned in four core project areas. Two of these
projects are in shale gas areas (Barnett in Texas and Fayetteville in
Arkansas) which we believe will provide us with a strong and repeatable
base of drilling opportunities. Another project area in the Rocky Mountains
allows us to drill wells in areas that could generate significant
production and financial success. Our final project area in Western Canada
should generate additional drilling and production opportunities from our
base in Calgary, Alberta.
The Company now has a very capable management team and an experienced
board of directors with a clear mandate to establish and grow production
and cash flow.
Management Team
The Company started with the combined skill set of Ron Hietala and Mark
Gustafson.
Ron Hietala spent nineteen years at Canadian Hunter Exploration Ltd.
(‘Canadian Hunter’) as Vice President, Manager of Reservoir Evaluation. As
a Petrophysicist, he was a key contributor to several of Canadian Hunter’s
multi-TCF natural gas discoveries. Canadian Hunter was acquired in 2001 by
Burlington Resources Inc. Ron is the President of both of the Company’s
operating subsidiaries and his past Canadian Hunter contacts have led the
Company to all four of its current project areas. Many of the Company’s
consultants also have a strong connection to Canadian Hunter.
Mark Gustafson spent seven years as a Chartered Accountant with Price
Waterhouse, then became the CFO of EnServ Corporation (acquired by
Precision Drilling – PDUN:TSX, NYSE), followed by President of Total Energy
Services Ltd.(TOT:TSX) and President of Torrent Energy Corporation
(TREN:OTCBB). He is the CEO of the Company and was responsible for securing
$31 million US in funding for the Company to date.
The management team has been strengthened with the addition of Troy Wagner
as the COO/VP Engineering (10 years with a large Canadian company producing
36,000 BOEPD) and Aly Musani as CFO (Chartered Accountant with a
progressive oilfield service company). In addition the Company has
appointed Andy Prefontaine as Land Manager (Landman for large independent
operating in Canada and the U.S.). This team is complemented by a core
group of consultants with extensive geological, geophysical and engineering
experience.
Board of Directors
Besides Mr. Hietala and Mr. Gustafson, Triangle has two additional board
members.
Dr. Steve Holditch is a Houston-based petroleum engineer who built a very
successful production and reservoir engineering company over a 20 year
period (S.A. Holditch & Associates Inc.) then sold the firm to Schlumberger
Technology Corporation. Dr. Holditch is currently the Head of the Petroleum
Engineering Department at Texas A&M University and actively consults to
clients around the world.
John Carlson is a Calgary-based petroleum engineer who spent 16 years with
Sproule Associates Ltd., a well respected reservoir engineering firm. He is
currently the President and CEO of Torrent Energy Corporation, a coalbed
methane exploration and production company.
The Company intends to recruit additional independent directors as it
considers moving to a more established exchange or marketplace.
Core Project # 1 – Barnett Shale Program
We believe that a major shift is unfolding in the recognition and
commercialization of unconventional gas reservoirs. Specifically,
commercial shale gas production in the United States is emerging as a
cornerstone of the overall North American gas supply. We have successfully
initiated a business relationship with a focused shale gas company, Kerogen
Resources Inc. (‘Kerogen’) of Houston, Texas. The principals of Kerogen and
Ron Hietala have experienced a long history of working together and
developing new opportunities. We believe that the Kerogen team has a well
established track record in shale gas and unconventional reservoir
development.
Triangle has acquired a 30% working interest position in a five county
joint venture program with Kerogen. The five counties are located in the
South Fort Worth Basin and include Johnson, Hood, Hill, Sommerville and
Bosque. To date, approximately 13,000 gross acres have been leased. One new
ten square mile 3-D seismic survey has been shot over an acreage tract in
Hill County. A suitable drilling location is currently being reviewed along
with pooling strategies to include other companies in the area.
The Company has participated in four lower working interest (approximately
6%) horizontal wells (1 Johnson County and 3 Hill County). The four wells
which are all currently producing had initial gross production rates of
between 400 mcf/day (million cubic feet per day) and 2,800 mcf/day. These
initial production rates should stabilize at lower levels over the next six
to twelve months. The Kerogen joint venture plans further drilling over the
next three to six months which will be a combination of traditional Barnett
programs and new opportunities which have been identified by recent
industry drilling and the proprietary 3-D seismic acquired by the joint
venture.
In addition to the Kerogen joint venture, Triangle plans to expand its
presence in the Barnett through additional drilling participations in
established areas of production. A key goal for the Company is to increase
our initial production base by identifying acreage tracts that can be
acquired with near-term drilling commitments and also to pursue drilling
opportunities that result from leases nearing their expiry period. Our plan
is to participate in at least 10 new Barnett Shale wells over the next
twelve months, subject to raising additional funds.
The key considerations for the Barnett in the established areas are related
primarily to operational and engineering issues (completion methods,
production infrastructure, etc). Unless there is strong technical evidence,
we are planning on investing only in the established production areas in
the Barnett. A particular focus will be given to selecting projects that
have short pipeline connection timeframes. The working interests achieved
will vary depending on the acreage tracts available and the business risks
attributed to each project.
Core Project # 2 – Fayetteville Shale Program
Triangle has committed an initial $16 million to a joint venture with
Kerogen. Mr. Hietala worked with two of the main principals of Kerogen at
Canadian Hunter previously and the opportunity to participate in an
emerging shale gas project at this early stage with Kerogen was very
attractive. We believe that the Fayetteville Shale of the Arkoma Basin has
the ability to deliver similar results to the trend setting Barnett Shale
of the Fort Worth Basin. Triangle and Kerogen have an equal 50% working
interest position in approximately 17,000 gross acres leased to date in
Conway and Faulkner Counties. A measured pace of additional leasing is
planned to complement the 2007 drilling program. Based upon strong initial
drilling results from major oil and gas companies just north of our land
position, the Company believes that the Fayetteville Shale program has the
potential to be a major growth.
The first test well of the Fayetteville joint venture has commenced
drilling through an acreage pooling arrangement with another area operator.
Concurrent with the first drilling operation, a new state-of-the-art,
multi-component 3-D seismic survey is in the planning and permitting phase.
The seismic acquisition phase is expected to commence by the end of this
year. A second 3-D, on another acreage block, should be initiated during
the first part of 2007. Once the seismic program has been completed and
interpreted, the Company plans on drilling at least four vertical test
wells in order to gather additional sub-surface data.
The experience gained on the initial test wells will guide the drilling and
completions planned for the overall 2007 drilling program. It is recognized
that there will be unique formation properties that require well by well
analysis to determine the optimum horizontal well planning and fracture
stimulation programs.
Triangle’s strategy is to establish commercial production from the
Fayetteville in the joint venture controlled areas that will be capable of
accessing current and expanded pipeline connectivity. Expectations are to
participate in the drilling of between five and ten wells during the next
twelve months. Working interests will vary for the joint venture as a
combination of pooled and 100% joint venture lands will be drilled. The key
business issues associated with the Fayetteville include optimizing
drilling and completion costs in the area as the service industry matures
along with assessing the optimum multi-stage stimulation programs in the
horizontal wells.
One of our longer term objectives is to capitalize on the technical and
business experience gained in the United States by selecting the most
favorable shale gas areas in Canada and establishing an early land position
in those areas.
Core Project # 3 – Rocky Mountain Program
The Rocky Mountain region of the Western United States presents
opportunities that bear many of the positive attributes of the Alberta Deep
Basin. The Rocky Mountain core area strategy for Triangle has been to
identify higher-risk, large growth potential projects that have low to
moderate acreage costs which can also be readily leased.
Triangle has embarked on a joint venture with Hunter Energy LLC (‘Hunter’)
of Denver, Colorado. Hunter has developed an extensive project inventory
based on the successful exploration track record of John Masters,
co-founder of Canadian Hunter. John Masters, along with his team of
geo-scientists and engineering specialists, has analyzed each of the
Western United States’ sub-basins and selected those which demonstrate key
indicators for major new hydrocarbon accumulations. In turn, Triangle has
made an initial commitment to participate in the drilling of three new
projects, each of which are anticipated to require multiple wells to
evaluate the acreage positions currently held by the joint venture. Each of
the three Hunter Energy exploration prospects are believed to have the
potential to contain significant quantities of recoverable oil or gas.
Triangle Petroleum USA has a 25% working interest in the three new Hunter
Energy projects. The project areas are geographically located in
north-western Colorado, south-western Wyoming, and northern Montana. The
gross acreage position in the three areas is approximately 91,000 acres.
An initial exploration test well was drilled on the north-western Colorado
project. Production has not been established to date from this first well.
Plans for the north-west Colorado project include working with area
operators to continue the exploration program, which management believes
should be very active. Drilling on the south west Wyoming project and the
Montana project are anticipated to commence in the first half of 2007 with
consideration being given to service industry equipment availability and
prevailing short-term winter weather conditions.
The re-evaluation of the Rocky Mountain basins has identified significant
opportunities which were not the prime targets at the time of previous and
deeper drilling by the industry. The predominant issues associated with the
shallower Rocky Mountain project areas are reservoir permeability and the
occurrence of local fresh waters being present.
Core Project # 4 – Western Canadian Program (Alberta Deep Basin)
As a direct result of Triangle’s experienced Deep Basin team, the Company’s
first exploration program was in this area. The Alberta Deep Basin is a
long-term gas exploitation area located primarily in northwestern Alberta.
Some of the early wells drilled by Canadian Hunter resulted in very
prolific wells during the 1970’s and 1980’s. Since then, over 6 TCF
(Trillion Cubic Feet) of gas has been produced by the key industry
producers in this Basin.
There are three new conditions which should generate new production for
companies committed to a long-term strategy in the Deep Basin. The first
significant development is the co-mingling of gas from a variety of the
possible seventeen separate geologic horizons in the Deep Basin. The
co-mingling of these multiple productive zones greatly improves the
economics of a project. The second significant development is the
downspacing from one well per section (640 acres) down to four wells per
section which provides a more efficient recovery of the resources. The
third significant development is the availability of extensive 3-D seismic
data covering multiple townships of the Deep Basin. The Company has
licensed a 120 square mile seismic data set to assist in the generation of
the most prospective drilling sites.
Two controlling factors that influence the development of new drilling
locations are land availability and increasing costs of placing a well on
production. Access to land has improved and completion costs appear to have
peaked. To date, Triangle has access to thirty-one sections of land
(approximately 20,000 gross acres), which are in various stages of earning
with the joint venture partners.
The Company has participated in six Deep Basin wells. In addition, one well
is currently drilling. Of the six wells, three are waiting on completion,
two wells tested gas at rates lower than economic for pipeline connections
and one well tested fresh water. The well currently being drilled is the
first location to combine both shallow and deep exploration targets.
Triangle’s strategy is to participate in drilling opportunities at a
working interest of between 20% and 35%. The multi-horizon Deep Basin area
provides improved financial returns to companies that plan, and execute,
multi-well programs which reduce geologic risk and individual well costs.
The Company currently has a strong inventory of drilling locations and the
focus will be to appropriately access the land and create a multi-well
program.
Future Projects
The management team at Triangle is actively searching for and reviewing
projects that will complement the four core project areas. Priority is
being given to joint venture or acquisition opportunities that require
minimal outlays for land positions leading to near term drilling and
completion programs. Management plans include raising additional capital to
pursue these projects. Production and cash flow performance are now the key
drivers for the next twelve to twenty-four months.
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
For more information contact:
Jason Krueger, CFA, Corporate Communications
E-mail: info@trianglepetroleum.com
Telephone: (403) 374-1234
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:
Jason Krueger
403-374-1234
info@trianglepetroleum.com
(c)DGAP 28.11.2006
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