Triangle Acquires Shale Gas Prospect in Nova Scotia
Triangle Petroleum Corp. on Tuesday announced another major development in its Canadian shale gas program with the acquisition of a 516,000 acre parcel in Nova Scotia. This is in addition to the previously announced 68,000 acre farm-in agreement in New Brunswick that the company announced in early March.
The ability to identify and secure significant land blocks on a cost-effective basis is a key component of the company's overall strategy. Triangle will be building on and transferring experience gained from its two core shale gas projects, the Fayetteville Shale Project in Arkansas (20,000 gross acres) and the Barnett Shale Project in Texas (13,000 gross acres), to its new shale gas opportunities in Eastern Canada. This acquisition is consistent with the company's comprehensive North American shale gas strategy, which includes the following six stages:
--Geoscience and engineering screening; --Land acquisition program; --Establishment of appropriate joint-venture partnerships; --Acquisition of project focused seismic; --Execution of initial drilling and completion program; and --Implementation of continuous development operations and production.
The Nova Scotia Project:
The project, which is located in the Windsor Area, covers approximately 516,000 acres and, based on an extensive screening process and technical work performed to date, is believed to be located in a highly favorable geological setting. Additional laboratory measurements will be taken on core samples and drill cuttings that are available from previously drilled conventional wells. Triangle will be entitled to earn an average 70% working interest in the block subsequent to paying an $80,000 deposit to the Nova Scotia Government prior to September 15, 2007 and then electing to drill a test well no later than September 15, 2008. Triangle's plan is to move forward aggressively in the assessment of this new project.
Ron Hietala, President of Triangle's operating subsidiaries, said: "Our geoscience team has identified comparable geological attributes in the Eastern Canadian basins to the Barnett and Fayetteville trends of the Fort Worth and Arkoma Basins. This second land deal builds on our long-term strategy to be a significant Canadian shale gas development and production company."
Triangle is an exploration company focused on the Fayetteville Shale project in Arkansas, the Barnett Shale project in Texas and Canadian Shale projects. Triangle is also participating in select areas of the Western United States and in the Deep Basin of Western Canada.
- Triangle Zeroes in on Bakken Shale Play in North Dakota (Feb 08)
- Triangle Targets North American Shale Plays, Appoints New CEO (Dec 01)
- Triangle Petroleum Increases Working Interest in Core Area to 87% (Jun 11)