Triangle Petroleum has reported the following update on its 516,000 gross acre shale gas project on the Windsor Block in Nova Scotia, Canada.
Completion operations on the first vertical exploration well (N-14-A) have started up again after the holiday break. A service rig is now on site to recover downhole equipment and plugs within the 100 meter interval that was perforated and fracture stimulated in late 2008. Flowback of the 200 tonne, four-stage slickwater frac is expected to start within the next week.
Completion operations on the second vertical exploration well (O-61-C) have now been planned and should move forward pending equipment availability and partner concurrence. The Company has determined that there are five to six potential zones of interest in this well, including deep tight sand and shale, mid-depth conventional carbonate and sandstone intervals, and a potential shallow gas zone.
Technical evaluation, including shale-focused geochemical and rock evaluation of the third vertical exploration well (E-38-A) is almost complete. Completion operations should move forward once government approvals and partner concurrence have been obtained. Results from these completion operations will be reported after the Company has had the opportunity to fully evaluate the extensive suite of technical data received from the three wells.
Joint Venture Partnerships
Triangle's joint venture partner, Zodiac Exploration Corp. ("Zodiac") has earned an approximate 13% working interest in the Windsor Block by spending approximately US $8 million to date. Zodiac has elected to maintain its future capital expenditures at this 13% working interest level and not commit an additional $7.5 million to earn an additional 12.5% working interest (see June 23, 2008 press release). Triangle now has a 57% working interest in the Windsor Block.
Since an important element of the Company's strategy is to add joint venture partners in order to mitigate exploration risk and accelerate the drilling program for the Windsor Block, Triangle is participating in the North American Prospect Expo (NAPE) in Houston on February 5 and 6. Representatives of the Company will be available at booth # 1333 during the NAPE conference.
As a result of the Company settling all of its remaining debentures and becoming debt-free in the process (see December 19, 2008 press release), the Company has approximately US $11.4 million in cash and US $7.6 million in working capital as of December 31, 2008.
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