2010-11-04-2010-10-25-2010-10-25

Formed a JV to develop ND Bakken shale assets on approximately 13,000 net acres in the Williston Basin.

Denver-based Triangle Petroleum Corp. (OTCBB; Toronto Venture: TPLM; TPE) reports it has formed a joint venture to develop its Bakken shale assets in North Darkota with New York-based Oppenheimer Global Resource Private Equity Fund I and a related co-investment fund, each managed by an affiliate of Oppenheimer & Co Inc.

Oppenheimer has made a $25-million capital commitment to co-invest with Triangle in its future acquisition and development of assets in the Bakken shale play. Approximately $10 million of the initial investment could be increased to as much as $19 million, and is allocated for leasehold acquisition with the remainder available for well development. Oppenheimer has the right to participate in up to 25% of future Triangle activity in the Williston Basin.

Oppenheimer will pay its share of leasehold costs in all leases in which it participates, plus a premium to Triangle equal to an additional percentage of lease acquisition costs which is designed to remunerate Triangle for its services in sourcing and managing the acreage activity in the Williston Basin. The acreage premium varies depending upon the level of lease acquisition costs. Oppenheimer will also bear 25% of all of Triangle's brokerage costs in the region. In addition, Oppenheimer will pay its proportional share of all drilling and completion costs, plus a 10% premium thereof to Triangle for its services associated with well development. Triangle will also earn an annual management fee as G&A reimbursement. Future leasehold acquisition pursuant to Triangle's joint venture with Slawson Exploration is excluded from its deal with Oppenheimer.

"We are very pleased to partner with Oppenheimer in the Williston Basin," says Jonathan Samuels, Triangle Petroleum chief financial officer. "Their financial strength combined with our team's technical capacity and growth platform will allow both parties to pursue the expanding opportunity set in the Williston Basin in a cost effective manner. We look forward to working with Oppenheimer and to jointly accelerating our growth trajectory in the Bakken."

CK Cooper & Co. is financial advisor.

Founded in 2006, Triangle holds approximately 13,000 net acres in the Williston Basin targeting the Bakken shale and Three Forks formations. Additionally, the company holds 475,000 gross acres (413,000 net acres) in the Windsor Block of Nova Scotia.