Receives approval in principle for gas production lease in Hants County

Triangle Petroleum Corporation announced Dec. 23 that its Canadian operating subsidiary, Elmworth Energy Corporation, has received approval in principle from the Nova Scotia government for a shale gas production lease in the Windsor Block, Hants County.

Test drilling had centred around the Kennetcook area. “Elmworth is pleased to gain approval in principle for the next phase of our Windsor block project,” Triangle president Howard Anderson said in the Dec. 23 release. "Nova Scotia is a great place to do business, and we hope our development will bring a new source of energy and continued economic benefits to the region.”

Nova Scotia Energy Minister Richard Hurlburt said in his department’s news releases,“this project has the potential to generate substantial economic benefits for Nova Scotia. I look forward to working with Elmworth as it moves forward with the project.”

Elmworth Energy received approval in principle to develop shale gas in the Windsor area of Hants County, and in Kings County. The production lease represents the province's first onshore shale gas development, which is natural gas produced from shale.

Triangle noted that this production lease will cover a 10-year period and additional approvals are required for specific activities and stages within the lease. Company staff will meet with energy department officials in the New Year to confirm specific work commitments that were proposed in the development application submitted in June 2008.

The company will require additional government approvals for specific lease activities, including any new seismic programs drilling and pipeline construction.

Triangle is an exploration company focused on an emerging Canadian shale gas project covering 516,000 gross acres in the Maritimes Basin in Nova Scotia through Elmworth Energy Corporation, its Calgary-based operating subsidiary. Elmworth opened an office in Halifax in the fall.

Triangle's common shares trade on the TSX Venture Exchange under the symbol TPE and on the OTC Bulletin Board under the symbol TPLM.

Although this is the province’s first shale gas production lease, it is the province's second onshore production opportunity. Stealth Ventures was granted a production agreement for coalbed methane or natural gas from coal in November 2007.