Triangle Petroleum Reports on Canadian Ops
Triangle Petroleum Corporation said that it continues to actively explore in Western Canada through its wholly owned Canadian subsidiary, Elmworth Energy Corporation. Elmworth's corporate objective is to focus on building a solid production and cash flow base for the Company in the near term. The Alberta Deep Basin drilling programs will complement the longer-term production opportunities being pursued in the core shale gas projects of the Barnett Shale in Texas and the Fayetteville Shale in Arkansas.
Current Well Programs
Elmworth provided an update on its continuing drilling programs in the Alberta Deep Basin. Elmworth, in conjunction with its industry partners, has drilled and cased a 3,200 meter (10,500 feet) test well in the Kakwa area (northwestern Alberta). Multiple gas bearing primary and secondary targets were penetrated by the test well. A completion program is currently being finalized with the operator and the field activity is expected to commence this month. A nearby pipeline will be available to move production volumes subsequent to the final completion evaluation and production testing. A follow-up location on available acreage is currently under consideration by the partner group. Elmworth is participating in the farm-in agreement by paying 20% of the costs to earn an 18% before-payout (BPO) working interest and a 12% after pay-out (APO) working interest, as well as earning a 12% working interest in a prospective adjoining section. Revenue from this project is projected to commence in the first half of 2007.
Elmworth is also currently drilling a Company-operated 2,950-meter (9,900-feet) Fernie test well in the Wapiti area of the Alberta Deep Basin. This Cretaceous test location spudded on December 19 is located within Elmworth's previously licensed and interpreted 120 square mile 3-D seismic survey. Elmworth has a 50% working interest in this project along with two other industry partners. Elmworth has access to a total of 3,200 acres related to this drilling opportunity.
Elmworth participated in a previous drilling opportunity in the Wapiti area of the Alberta Deep Basin at 01-22-065-08W6. The well, which tested the shallower Cretaceous sands, was successfully drilled, cased and completed. The results of the production testing warrant a pipeline connection to the well. The operator is proceeding to have the well placed on production. Elmworth earned a 50% interest in the test well by paying a 66% share of the costs. Provisions in the operating agreement provide for access to follow-up lands by committing to further drilling.
Elmworth plans to continue its Alberta Deep Basin program at a measured pace. The Company has an extensive inventory of prospects and believes that industry conditions may contribute to land becoming more readily available for farm-in opportunities.
Ron Hietala, President of Triangle's operating subsidiaries states, "In addition to the production and cash flow from these Deep Basin wells, we have conducted a number of technical studies on potential shale gas opportunities in Canada. We anticipate participating in new Canadian shale gas projects in 2007."
Triangle is an exploration company focused on the Barnett Shale project in Texas, the Fayetteville Shale project in Arkansas, resource plays in the Deep Basin area of Western Canada and in select areas of the western United States. 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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