Delaying All Operated Well Completions Until May or Longer
In a Feb. 5, 2015 news release, Triangle Petroleum Corporation announced their capital expenditures budget for its fiscal year ending Jan. 31, 2016, a budget that represents a 71 percent year-over-year capex reduction.
Headquartered in Denver, Colorado, Triangle Petroleum Corporation holds leasehold interests in the Williston Basin, the majority of which are located in McKenzie and Williams counties in North Dakota and eastern Roosevelt and Sheridan counties in Montana.
Since entering the basin in early 2010, Triangle has acquired approximately 86,000 net acres within the Bakken and Three Forks formations: roughly 36,000 net acres in North Dakota, and 50,000 net acres in Roosevelt and Sheridan counties of Montana, adjacent to the Elm Coulee Field.
Fiscal Year 2016 Capital Budget Outlook
• Triangle's fiscal year 2016 capital expenditure budget totals approximately $165-195 million (see table).
• FY2016 budget represents a 71% year-over-year reduction
• Focused on 1) protecting the balance sheet, 2) maintaining adequate liquidity, 3) return on capital and 4) positioning the Company for earnings and production growth post-recovery
• Development plan contemplates 2 operated rigs on average for the year
• Triangle currently delaying all operated well completions until May or longer, subject to commodity prices and gaps in the RockPile third-party completion schedule
• The Company anticipates having 20-24 wells waiting on completion as of May 1, 2015
• Triangle is actively working with vendors and service providers to reduce drilling and completion costs, targeting a 10-20% reduction in E&P gross AFE costs
• Plan allows Triangle to preserve near-term liquidity and avoids well IPs in a low commodity price environment to the detriment of return on capital
• Allows Triangle to respond quickly to any improvement in commodity pricing and to return daily production numbers to at or above December 31, 2014 exit rate numbers
• Provides RockPile with significant backlog of work in Q2 and Q3 when there is
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