Triangle Petroleum's CEO Outlines Corporate and Exploration Progress

Market Wire, November, 2006

In addition to the Kerogen joint venture, Triangle plans to expand its presence in the Barnett through additional drilling participations in established areas of production. A key goal for the Company is to increase our initial production base by identifying acreage tracts that can be acquired with near-term drilling commitments and also to pursue drilling opportunities that result from leases nearing their expiry period. Our plan is to participate in at least 10 new Barnett Shale wells over the next twelve months, subject to raising additional funds.

The key considerations for the Barnett in the established areas are related primarily to operational and engineering issues (completion methods, production infrastructure, etc). Unless there is strong technical evidence, we are planning on investing only in the established production areas in the Barnett. A particular focus will be given to selecting projects that have short pipeline connection timeframes. The working interests achieved will vary depending on the acreage tracts available and the business risks attributed to each project.

Core Project # 2 - Fayetteville Shale Program

Triangle has committed an initial $16 million to a joint venture with Kerogen. Mr. Hietala worked with two of the main principals of Kerogen at Canadian Hunter previously and the opportunity to participate in an emerging shale gas project at this early stage with Kerogen was very attractive. We believe that the Fayetteville Shale of the Arkoma Basin has the ability to deliver similar results to the trend setting Barnett Shale of the Fort Worth Basin. Triangle and Kerogen have an equal 50% working interest position in approximately 17,000 gross acres leased to date in Conway and Faulkner Counties. A measured pace of additional leasing is planned to complement the 2007 drilling program. Based upon strong initial drilling results from major oil and gas companies just north of our land position, the Company believes that the Fayetteville Shale program has the potential to be a major growth.

The first test well of the Fayetteville joint venture has commenced drilling through an acreage pooling arrangement with another area operator. Concurrent with the first drilling operation, a new state-of-the-art, multi-component 3-D seismic survey is in the planning and permitting phase. The seismic acquisition phase is expected to commence by the end of this year. A second 3-D seismic survey, on another acreage block, should be initiated during the first part of 2007. Once the seismic program has been completed and interpreted, the Company plans on drilling at least four vertical test wells in order to gather additional sub-surface data.

The experience gained on the initial test wells will guide the drilling and completions planned for the overall 2007 drilling program. It is recognized that there will be unique formation properties that require well by well analysis to determine the optimum horizontal well planning and fracture stimulation programs.