In addition to phase one production results from both Hood and Parker Counties in its Barnett Shale project (see April 4 press release), Triangle has commenced production from two of three wells drilled in the last four months of 2006 in the Alberta Deep Basin as follows:
Four gas-bearing zones (Cadomin, Bluesky, Falher G, Falher B) have been completed in a 10,500 foot well in the Kakwa area of Northwestern Alberta. This well has been tested at a facility restricted rate of 3.6 mmcfpd (million cubic feet per day) or 600 BOED (barrels of oil equivalent per day) and is capable of producing over 5.0 mmcfpd or 830 BOED. The Company paid 20% of the well costs for an 18% interest before payout (and 12% after payout) in this well. At least one additional well is planned in an adjoining section of land.
In the Wapiti area the Company has an approximate 35% working interest in a 7,900 foot well that is located within the multi-township 3-D seismic area licensed by the Company. This well was completed in the shallow Cretaceous Dunvegan sandstone interval. Subsequent to completion, the well was connected to a nearby pipeline. Initial production rates range from 0.4 to 0.6 mmcfpd or 60 to 100 BOED.
Also in the Wapiti area, the Company has a 50% interest in a 9,900-foot well that was testing the Cadomin and Falher zones. The Cadomin zone was completed but tested wet. The Falher zone tested gas but at rates that were uneconomic to tie-in this past winter season. A potential tie-in for this well will be re-evaluated in the future based upon gas prices and future pipeline activity in the area. Accordingly, this well is currently suspended as a potential gas well.
Mr. Ron Hietala, President of Triangle's operating companies comments, "We are encouraged by the initial production from the Barnett Shale and the Deep Basin projects. We will continue to build our near-term production and cash flow base while pursuing additional shale gas opportunities."
Triangle is an exploration company focused on Shale Gas Projects which include the Fayetteville in Arkansas, the Barnett in Texas, and emerging projects in Canada. The Company is also pursuing conventional projects in select areas of the western United States and Canada. 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.
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