Triangle Petroleum Acquires Acreage in North Dakota’s Bakken Shale

Triangle Petroleum Corp. (OTCBB: TPLM; TSX-V: TPE) acquired 4,000 net acres in Williams and McKenzie counties in North Dakota.  The Company further announced a new partnership with Slawson Exploration, a leading operator in the fairway, aimed at the acquisition and development of acreage in known areas of production from the Middle Bakken and Three Forks formations of the Williston Basin.

According to Dr. Peter Hill, CEO of Triangle, “Our business strategy is to directly acquire and develop acreage prospective for capturing the Bakken resource base at attractive margins. Today marks the first step in that strategy and we will continue to grow and develop the business platform needed to deliver both early production and the turn round of Triangle.”

Read More

Triangle Petroleum Announces New Strategic Direction

In a press release this morning, Triangle Petroleum Corporation (OTCBB: TPLM; TSX-V: TPE) announced the following developments based upon recent discussions with its largest shareholder, Palo Alto Investors, LLC. 

In addition to its existing shale gas project in Nova Scotia, Triangle has decided to pursue several opportunities in North American unconventional oil plays. The Company intends to acquire prospective acreage and to commence an appraisal and development program with the aim of producing early cash flow and a series of growth options. The Company has cash reserves in excess of $5 million, significant tax pools (approximately $32 million in the US and $29 million in Canada), and has no debt, to support this new direction.

As a follow up to this morning’s announcement, at the close of markets today, Palo Alto Investors applauded the Company’s Board for its decisive actions on behalf of shareholders, including the appointment of Dr. Peter J. Hill as the Company’s Chief Executive Officer and the addition of three new Board members who have been brought in to help the Company create a new strategy focused on near-term opportunities in North American unconventional oil and gas basins.

Below please find links to both press releases:

Triangle Petroleum Announces New Strategic Direction, Changes to the Board of Directors and New CEO

Palo Alto Investors Voices its Support of New Management and Board at Triangle Petroleum

Triangle Commences Seismic Program, Provides Company Update

CALGARY, ALBERTA–(Marketwire – 10/05/09) – Triangle Petroleum Corporation (TSX-V: TPE; OTCBB: TPLM) today reported commencement of a 30 kilometer, 2D seismic program on its 475,000 gross acre Windsor Block in Nova Scotia, Canada, which it expects to begin 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.

Read More

Analyst Coverage Update for Triangle Petroleum

As we previously posted, on September 2, 2009, Triangle Petroleum (OTC BB: TPLM; TSX-V: TPE) announced second quarter financial results and operational updates.  Following the Company’s announcement last Wednesday, each of the research analysts providing coverage of Triangle Petroleum released a brief update.  Several common themes from the analysts were that the Company has a substantial gas play in Nova Scotia, the Company seeks one or more joint venture relationships to fund ongoing drilling, and the current natural gas prices make it difficult to attract interest.   Excerpts from the analysts reports are included herein and complete copies of which are available upon request.  To request an electronic copy, please send an email to ir@babybulls.com.

Beacon Securities Limited: Triangle continues to search for one or more joint venture partners in order to advance its Windsor Block operations.  The Company is current in discussions with potential JV partners.  The current incredibly low gas prices would make attracting a JV partner difficult.  Expectations for a rebound in natural gas pricing would assist in the hunt.  We do not expect Triangle would be able to fund the drilling of productions wells without a JV.  We continue to rate Triangle Petroleum a Speculative Buy with a 12-month target price of US$0.55 per share or C$0.61.  This reflects a target NAVPS of US$0.54.  While the Horton Bluff Shale holds a significant amount of potential, we believe the immense risk of this shale gas play warrants a Speculative Buy rating.

Research Capital: Triangle acquired an additional 30% working interest in the Windsor Block from Contact Exploration Inc. in exchange for agreeing to provide Contact a 5.75% non-convertible gross overriding royalty interest in the Windsor Block.  Contact also received a cash payment of C$270,000 (US$245,000) and Triangle assumed the liabilities related to Contact’s former working interest.  For the balance of fiscal 2010, Triangle plans to continue the technical evaluation of the five wells drilled to date, acquire additional seismic, and continue the search  for one or more new joint-venture partners to join in the next phase of exploration on the Windsor Block.  We continue to expect Triangle to be cautious in its drilling program in order to preserve a solid balance sheet.  We maintain our Speculative Buy recommendation. 

Canaccord Adams: In June 2009, the Company acquired an additional 30% working interest in the Windsor Block from Contact Exploration Inc. for $0.245 million cash and a 5.75% non-convertible gross overriding royalty interest in the Windsor Block.  The Company is actively looking for a new partner for its projects in Windsor Block that can provide additional funding and reduce exploration risk.

Triangle Petroleum Reports 2nd Quarter Results

CALGARY, ALBERTA–(Marketwire – 09/02/09) – Triangle Petroleum Corporation (the “Company” or “Triangle”) (TSX-V:TPE – News) (OTC.BB:TPLM – News) today reported financial results for its second quarter of the fiscal year ending January 31, 2010 and an operations update. Unless otherwise noted, all references to “$” are to U.S. dollars.

At July 31, 2009, the Company had cash and cash equivalents of $5.5 million, working capital of $5.9 million and no debt outstanding.  Shaun Toker, Triangle’s Chief Financial Officer, commented, “Given these tough economic times, we are pleased to have a clean balance sheet and we are actively managing our cash reserves. We continue to see a significant decline in our overhead costs due to the implementation of additional cost reduction measures by our management team.”

Read More

Worst of Natural Gas Bear Behind Us?

Mike Paulenoff, author of the MPTrader.com published a brief report on the natural gas market yesterday, with the conclusion that the worst of the natural gas bear market might be behind us. Here is an excerpt from the article with a link below for the full article. “The natural gas inventory figures came in more or less as expected, which in this market is a victory!  Otherwise, the tame inventory data really should not be a surprise.  If we are to believe what my near and intermediate work is telling us, the worst of the gas bear market is behind us, and now we are in the arduous “base-building” phase (measured in weeks) prior to a sustainable powerful upmove.” 

If this prediction holds true, it would reinforce the current futures strip pricing on NYMEX, which shows $4 and $5 per mcf prices over the near to mid term contracts, and would be a great value driver for energy E & P groups that are developing North American based natural gas reserves.

Read more

Research Coverage Initiated on Triangle Petroleum

Beacon Securities Limited initiated coverage on Triangle Petroleum today with a Speculative Buy rating and a 12-month target price US$0.55 per share or C$0.63. 

Read More

Triangle Petroleum Announces Shareholder Meeting

Triangle Petroleum Corporation (the “Company” or “Triangle”) (TSX-V:TPE – News) (OTC.BB:TPLM – News) is pleased to announce details of its Annual Meeting of Stockholders, which will be held in Calgary, Alberta.

The Annual Meeting of Stockholders will be held on Wednesday, July 8, 2009 at 11:00am MST in the boardroom at the Company’s head office in Calgary, Alberta, located at Suite 1250, 521 3rd Avenue SW. Among several proposals to be considered and acted upon will be the election of directors, adoption of a stock option plan and an amendment to the Company’s Articles of Incorporation.

Registered stockholders can access the Company’s Proxy Statement and Form 10-K at www.cstproxy.com/trianglepetroleum/2009. Online voting can be completed using control numbers that have been furnished to each stockholder by mail along with written instructions.

Read More

Triangle Increases Working Interest to 87%

In a press release today, Triangle Petroleum Corporation (OTC BB: TPLM; TSX-V: TPE) announced that its working interest in the 475,000 gross acre Windsor Block in Nova Scotia has increased to 87% from 57%.  This increase stems from the Company’s acquisition of Contact Exploration’s 30% working interest in the area.  In exchange for the 30%, Triangle agreed to provide Contact with (i) a 5.75% non convertible gross overriding royalty interest and (ii) a cash payment of $270,000. 

 

Per the Company’s press release June 2, 2009, Triangle has retained Jeffries Randall & Dewey to assist in the identification and selection of one or more joint venture partners with respect to the Windsor Block.  As a result of today’s announcement, Triangle is in a much better and stronger position with which to negotiate a joint venture agreement.  The additional 30% working interest the Company just picked up is now available to another joint venture partner.  Howard Anderson, Triangle’s President and COO, summed it quite well as follows, “Together with the recent hiring of Jeff McKenna, our new Vice President, Corporate Development, retaining the experienced and reputable firm of Jefferies Randall & Dewey demonstrates our clear commitment to accelerating our Nova Scotia shale gas project.”

 

To view the complete press release, click here.

Energy Markets Heating Back Up, KKR Invests $350 M in Private Natural Gas Group

It was announced this morning that the venerable investment banking firm of Kohlberg, Kravis and Roberts (KKR) was going big into natural gas with a $350 million investment into East Resources, a private company with a large land package (900,000 acres) and infrastructure on the ground in the Marcellus Shale, a non-conventional shale gas play located between New York and Virginia on the east coast. In related news, the front month NYMEX futures contract for natural gas hit $4.25 in recent trading and the research department of Suntrust Robinson Humphrey recently reiterated their 2010 forecast for natural gas of $7.50 per mcf (1 mcf = 1,000 cubic feet).  Goldman Sachs research also recently weighed in on the discussion, targeting $85 dollar oil by yearend.

With rig counts down to multi-year lows, natural gas pricing looks to be on the uptrend over the mid to longer term, which bodes well for companies that have survived through the tough recent market for energy and have large tracts of prospective acreage to develop and bring on line.

While you can’t invest alongside KKR in East Resources (as they are a privately held company), you can gain exposure to upside in natural gas for your portfolio through ownership in junior energy groups such as Triangle Petroleum (OTCBB:TPLM) & (TSX-V:TPE), Dejour Enterprises (NYSE AMEX:DEJ) & (TSX:DEJ) and GeoPetro Resources (NYSE AMEX:GPR).

These three junior E & P companies are building out and developing highly prospective energy resources in 4 primary North American regions as follows:

Triangle Petroleum: 474,625 gross acres/270,000 net acres in the Eastern Maritimes of Nova Scotia. Dejour Enterprises:  150,000 net acres in the Piceance Basin of Western Colorado and the Peace River Arch/Montney region of BC, Canada. GeoPetro Resources: a producing gas field and wholly owned gas treatment facility in the highly productive Rodessa/Bossier Deep region of east Texas as well as four additional “company maker” projects.

Each of these companies is very well positioned to take advantage of a rising cost environment for energy and are working dilegently to produce from existing discoveries as well as identify new reserves to build value for their shareholders.

More about each of these promising junior energy growth stocks is available online at:

Triangle Petroleum Corp.    www.trianglepetroleum.com   Presentation at:
http://www.dejour.com/docs/dejour%20corporate%20presentationapril09.pdf
 

Dejour Enterprises Ltd. www.dejour.com  Presentation at:
http://www.trianglepetroleum.com/en/triangle_pp_april_09.pdf

GeoPetro Resources – www.geopetro.com  Presentation at:
http://www.babybulls.com/GPR_Investor_Presentation_May-09.pdf