Triangle Petroleum Announces Second Quarter Financial Results and Operations Update

• Press Release
• Source: TRIANGLE PETROLEUM CORPORATION
• On 4:45 pm EDT, Wednesday September 2, 2009

CALGARY, ALBERTA--(Marketwire - 09/02/09) - Triangle Petroleum Corporation (the "Company" or "Triangle") (TSX-V:TPE - News) (OTC.BB:TPLM - News) today reported financial results for its second quarter of the fiscal year ending January 31, 2010 and an operations update. Unless otherwise noted, all references to "$" are to U.S. dollars.

Financial Summary

At July 31, 2009, the Company had cash and cash equivalents of $5.5 million, working capital of $5.9 million and no debt outstanding.

Shaun Toker, Triangle's Chief Financial Officer, commented, "Given these tough economic times, we are pleased to have a clean balance sheet and we are actively managing our cash reserves. We continue to see a significant decline in our overhead costs due to the implementation of additional cost reduction measures by our management team."

In the second quarter of fiscal 2010, the Company's cash position was reduced by $0.6 million. The Company used $0.7 million for cash General and Administrative ("G&A") expenses, which was down $0.2 million from the prior year second quarter expenses of $0.9 million primarily due to management implementing cost reductions. Also during the second quarter of fiscal 2010, the Company used $0.6 million cash for oil and gas expenditures mainly related to completion operations on the E-38-A well and retesting the Kennetcook #1 and #2 wells. These expenditures were offset by proceeds received from the disposition of U.S. non-core assets of $0.1 million and a cash foreign exchange gain of $0.6 million.

In the first six months of fiscal 2010, the Company's cash position was reduced by $2.9 million. The Company used $1.4 million for cash G&A expenses, which was down $0.6 million from the prior year's first six month expenses of $2.0 million primarily due to management implementing cost reductions in salaries, consulting fees, office costs and public company costs. Offsetting the cash G&A expenses was the collection of $0.6 million in receivables and a $0.7 million cash foreign exchange gain.

In the first six months of fiscal 2010, the Company invested $2.1 million cash in oil and gas properties whereby $1.0 million was used for the shale gas exploration program in the Windsor Block of Eastern Canada, of which $0.2 million was used for testing of the N-14-A well, $0.2 million was used for completion operations on the O-61-C well, $0.1 million was used for completion operations on the E-38-A well, $0.2 million was used for retesting the Kennetcook #1 and # 2 wells and $0.2 million was used to acquire an additional 30% working interest in the Windsor Block, and $1.1 million was used to pay for work completed in the prior fiscal year. Also during the six month period, the Company used $0.7 million of its partner cash advances related to the Windsor Block exploration program. The Company has invested a total of $17.9 million net in the Windsor Block exploration program since May 2007.

The Company incurred a net loss of $0.2 million ($0.003 net loss per diluted share) for the second quarter of fiscal 2010 compared to a net loss of $2.4 million ($0.039 net loss per diluted share) for the second quarter of fiscal 2009. For the first six months of fiscal 2010, a net loss of $0.9 million ($0.013 net loss per diluted share) was incurred compared to a net loss of $4.2 million ($0.078 net loss per diluted share) for the same period of fiscal 2009. The decrease in the net losses was due primarily to the positive effects of the elimination of all debt in December 2008, lower G&A costs and a foreign exchange gain due to the weakening of the U.S. dollar.

Operations Update

Windsor Block:

Last quarter, Triangle reported that the N-14-A and O-61-C wells had been completed. Although no hydrocarbons flowed from these wells, useful geologic information was obtained, which will help guide future exploration efforts. Also in the first quarter, Triangle reported that the exploration agreement on the Windsor Block was superseded by a 10-year production lease. To maintain the lease in good standing in the first year, the lease requires the Company to complete the three wells drilled last year and acquire new seismic, at a total gross estimated cost of Cdn$2.0 million. Two of these wells are fully completed, the third is substantially completed, and a seismic program is in the process of being permitted. The Company believes this activity will satisfy the requirements of the first year of the lease.

In the second quarter, operations on the E-38-A well moved forward with three zones having been perforated and treated with diagnostic "micro-fracs." Engineering data from these tests are currently being evaluated. E-38-A evaluates an area of the Windsor Block which is structurally and geologically distinct from previous wells drilled in the field. Also in the second quarter, the two wells drilled in 2007, Kennetcook #1 and #2, were re-entered to isolate and test individual zones to identify the "gassiest" intervals in each well. From these tests, it appears the fracture treatments undertaken previously have commingled multiple zones together, making it difficult to separate gas from water in the subsurface. This information will guide the completion design of future wells so as to avoid any potentially water-bearing zones.

In June 2009, the Company acquired an additional 30% working interest in the Windsor Block from Contact Exploration Inc. ("Contact") in exchange for agreeing to provide Contact a 5.75% non-convertible gross overriding royalty interest in the Windsor Block. Contact also received a cash payment of Cdn$270,000 ($245,000) and Triangle assumed the liabilities related to Contact's former working interest.

For the balance of fiscal 2010, the Company plans to continue the technical evaluation of the five wells drilled to date, acquire additional seismic, and continue the search for one or more new joint venture partners to join in the next phase of exploration on the Windsor Block.

Howard Anderson, President of Triangle commented, "There is no question that these are challenging times for any gas-related projects, however we continue to be optimistic about the hydrocarbon potential in the Windsor Block and are actively seeking joint venture partners to help us identify and develop the most economically viable areas within the Windsor Block."

About Triangle Petroleum Corporation

Triangle is an exploration company focused on an emerging Canadian shale gas project covering 475,000 gross acres (413,000 net acres) in the Maritimes Basin in Nova Scotia through Elmworth Energy Corporation, its Calgary-based operating subsidiary. Triangle's common shares trade on the TSX Venture Exchange under the symbol TPE and on the OTC Bulletin Board under the symbol TPLM.

For more information please visit www.trianglepetroleum.com.

The financial statements referred to in this press release have been prepared in accordance with U.S. generally accepted accounting principles, which differ in certain material respects from Canadian generally accepted accounting principles. The Company has not prepared, nor is it required to prepare, a reconciliation of its financial statements to Canadian generally accepted accounting principles.

Safe Harbor Statement. This news release includes statements about expected future events and/or results that are forward-looking in nature and subject to risks and uncertainties. Forward-looking statements in this release include, but are not limited to the Company's planned drilling and evaluation program, operating costs and expectations of undiscovered resources. It is important to note that actual outcomes and the Company's actual results could differ materially from those in such forward-looking statements. Factors that could cause actual results to differ materially include the possibility that additional investments will not be made or that appropriate opportunities for development will not be available or will not be properly developed. For additional risk factors about our Company, readers should refer to risk disclosure contained in our reports filed with the Securities and Exchange Commission and on SEDAR.

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Triangle Petroleum Corporation
Consolidated Statements of Operations
(Expressed in U.S. dollars)
(Unaudited)

                                     Three      Three        Six        Six
                                    Months     Months     Months     Months
                                     Ended      Ended      Ended      Ended
                                   July 31,   July 31,   July 31,   July 31,
                                      2009       2008       2009       2008
                                         $          $          $          $

Revenue, net of royalties           29,183    107,831     63,087    259,950
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Operating Expenses

 Oil and gas production             31,875      4,154     52,576     63,381
 Depletion and accretion            50,262     23,268     91,477     93,567
 Depreciation - property and
  equipment                          7,335      9,988     11,674     19,747
 General and administrative        855,300  1,142,684  1,675,148  2,343,402
 Gain on sale of assets           (124,621)   (10,705)  (124,621)   (10,705)
 Foreign exchange loss (gain)     (558,575)    28,595   (707,654)    24,589
----------------------------------------------------------------------------
                                   261,576  1,197,984    998,600  2,533,981
----------------------------------------------------------------------------
Loss from Operations              (232,393)(1,090,153)  (935,513)(2,274,031)
----------------------------------------------------------------------------

Other Income (Expense)

Accretion of discounts on
 convertible debentures                  -   (791,042)         - (2,006,400)
Amortization of debt issue costs         -    (73,056)         -   (182,640)
Loss on debt extinguishment                  (160,662)         -   (160,662)
Interest expense                         -   (211,353)         -   (465,333)
Interest and royalty income             41     65,014      6,213     82,229
Unrealized gain on fair value
 of derivatives                          -   (125,741)         -    793,589
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Total Other Income (Expense)            41 (1,296,840)     6,213 (1,939,217)
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Loss for the Period               (232,352)(2,386,993)  (929,300)(4,213,248)
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Loss Per Share - Basic and
 Diluted                            (0.003)    (0.039)    (0.013)    (0.078)
----------------------------------------------------------------------------
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Weighted Average Number of
 Shares Outstanding - Basic and
 Diluted                        69,926,000 60,673,000 69,926,000 54,126,000
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Triangle Petroleum Corporation
Consolidated Balance Sheets
(Expressed in U.S. dollars)
(Unaudited)

                                                      July 31,   January 31,
                                                         2009          2009
                                                            $             $

ASSETS
Current Assets
 Cash and cash equivalents                          5,520,030     8,449,471
 Prepaid expenses                                     340,945       339,839
 Other receivables                                    301,432       998,511
----------------------------------------------------------------------------
Total Current Assets                                6,162,407     9,787,821
Property and Equipment                                 51,598        39,765
Oil and Gas Properties                             18,135,879    16,942,864
----------------------------------------------------------------------------
Total Assets                                       24,349,884    26,770,450
----------------------------------------------------------------------------
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
 Accounts payable                                     218,819     2,123,079
 Accrued liabilities                                   33,697        90,539
----------------------------------------------------------------------------
Total Current Liabilities                             252,516     2,213,618
Asset Retirement Obligations                          927,235       727,862
----------------------------------------------------------------------------
Total Liabilities                                   1,179,751     2,941,480
----------------------------------------------------------------------------

Stockholders' Equity
Common Stock
 Authorized: 100,000,000 shares, par value 0.00001
 Issued: 69,926,043 shares
 (January 31, 2009 - 69,926,043 shares)                   699           699
Additional Paid-In Capital                         81,426,178    81,155,715
Warrants                                            4,237,100     4,237,100
Deficit                                           (62,493,844)  (61,564,544)
----------------------------------------------------------------------------
Total Stockholders' Equity                         23,170,133    23,828,970
----------------------------------------------------------------------------
Total Liabilities and Stockholders' Equity         24,349,884    26,770,450
----------------------------------------------------------------------------
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Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

 
Contacts:
Triangle Petroleum Corporation
Jason Krueger, CFA
Corporate Communications
(403) 374-1234
Email: info@trianglepetroleum.com
Website: www.trianglepetroleum.com