Triangle Petroleum Corporation reported financial and operational results for its first quarter of the fiscal year ending on January 31, 2009.
The Company incurred a net loss of $1.8 million ($0.04 net loss per diluted share) for the first quarter of fiscal 2009 compared to a net loss of $3.4 million ($0.11 net loss per diluted share), for the first quarter of fiscal 2008. A primary contributor to the decrease in the loss was a significant reduction in stock based compensation expense, which is a component of general and administrative expenses. Revenue for the first quarter of fiscal 2009 totaled $0.2 million which was derived from producing wells in the Company's Barnett and Alberta Deep Basin projects compared to approximately $0.1 million in the first quarter of fiscal 2008.
In the first quarter of fiscal 2009, the Company spent $2.4 million on investing activities mainly related to shale gas exploration in the Maritimes Basin of Eastern Canada for completion and testing of two vertical test wells which were drilled in the third quarter of fiscal 2008. In the same quarter of fiscal 2008, the Company invested $2.6 million.
At April 30, 2008, cash and cash equivalents totaled $1.2 million. On June 4, 2008, Triangle announced that it raised $25.5 million through the private placement of 18,257,500 units priced at $1.40 per unit. Each unit consists of one share of common stock and one-half of a warrant. One full warrant can be exercised into one share of common stock for a period of two years at a price of $2.25 per share. The net proceeds of $23.6 million have been used to repay $4 million of secured convertible debentures and will be used to fund a portion of the drilling program in the Maritimes Basin and for general working capital. Canaccord Adams Inc. acted as placement agent for this offering.
Mark G. Gustafson, Triangle's Chairman, President and CEO, commented, "Our recently completed funding provides us with the working capital and strong balance sheet we need to focus our attention on the development of our Maritimes Basin shale gas project. We are reviewing that project with several potential joint venture partners and look forward to selecting one in the near future and to move forward aggressively with our drilling plans. Our capital investment program for the balance of this year will be directed almost exclusively to that area.
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