Triangle Issues Update on Canadian Projects
Triangle Petroleum Corp. made the following update in regard to its wholly owned subsidiary, Elmworth Energy Corp.:
Existing Deep Basin Projects
Elmworth earned a 25% working interest position in a 23-section block in the south Deep Basin area of Alberta by joining two other companies in a three-well drilling commitment in late-2005 and the first quarter of 2006. The shallow Belly River sands were tested in two wells where, despite good mud gas detector shows, fresh water was present in the formation. The operator has commissioned further technical work to assess the merits of trying to establish commercial hydrocarbon production in this area. Elmworth expects to receive a recommendation from the operator this fall.
Elmworth also participated in the drilling of a 2,500-meter (8,250-foot) well located in the Deep Basin of West Central Alberta in late 2006 for a 38.5% working interest. The well was stimulated in the Lower Cretaceous Gething formation; however, the gas rates and declines encountered did not warrant a tie-in to facilities. Based on the results of this well, Elmworth elected not to proceed on an option well with the operator. This precluded Elmworth from earning the ability to participate in the drilling of the additional five sections of land associated with this project.
Potential Deep Basin Projects
Geological and geophysical interpretations have revealed multiple drilling opportunities within the large contiguous 3-D seismic survey licensed by Elmworth. The seismic interpretation was a major task due to the size of the data set and the multitude of potential gas-bearing geologic formations present. The potential for new opportunities continues to be encouraging. Jervey Geological Consulting has completed the geological assessment of the key prospective horizons located within and adjacent to the 3D seismic data. Mac Jervey (Jervey Geological Consulting) has now concluded his work for Elmworth with the delivery and documentation of the prospective drilling recommendations.
Canadian Shale Gas Project
Elmworth has completed a technical evaluation of the 500,000-acre land block that the company had secured earlier this year. Extensive geological and geophysical analyses were performed on wells previously drilled in the project. The historical wells were drilled for conventional oil and gas prospects.
These new analyses were further supported by laboratory measurement of core and drilling cuttings to determine key shale gas parameters, including: source rock maturity, thermal history of the basin, and mechanical rock properties of the formation. The results of these analyses, when incorporated into a risked business model, do not support the drilling of a new well at this time. The knowledge and experience gained in the assessment of this project will favorably position Elmworth in other projects in this basin and surrounding areas.
Ron Hietala, Elmworth's president, said "the land acquisition strategy in Canada will be assessed and the economics of the multiple projects identified will be ranked with other corporate opportunities, including shale gas projects."
Triangle Petroleum Corp. is an exploration company focused primarily on the Barnett Shale project in Texas as well as on large resource plays in the Deep Basin area of Western Canada and in select areas of the western United States.
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