Triangle Petroleum has executed a 10-year production lease on its Windsor Block in Nova Scotia.

Triangle had already received approval in principal from the Nova Scotia government for a production lease in the Windsor Block. The specifics of this production lease have now been agreed to and the signed production lease includes the following highlights:

The production lease is for 474,625 gross acres (270,000 net acres). The production lease covers substantially all of the land which the Company had leased previously under the terms of an Exploration Agreement, with the exception of some fringe acreage deemed non-prospective by Triangle.

Triangle has rights to conventional oil and gas in the area, which includes shale gas, in both the Windsor and Horton Groups, excluding natural gas from coal. Triangle does not believe there are any prospective coals within the Windsor Block.

To retain rights to this land block, Triangle has agreed to drill seven wells to continue to evaluate the Windsor Block prior to April 15, 2014. These wells are to be distributed across the land block to fully evaluate both conventional and shale resources. Areas of the land block not drilled or adequately evaluated after the fifth year are subject to surrender.

Howard Anderson, President of Triangle said,"This lease, with its new 10-year tenure, eliminates a critical uncertainty in our ability to continue our efforts to identify signposts towards commercial production in the Windsor Block. To date, Triangle and its partners have invested approximately $32 million in seismic, drilling, completions and other technical work in the Windsor Block. We are also continuing our active search for one or more joint venture partners to join us in moving the project forward. Triangle is appreciative of the strong professional relationship established between its staff and Nova Scotia Department of Energy officials, and looks forward to continued shared success as the project moves forward."

Tags: Triangle Petroleum Corporation