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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (41458)	3/3/2011 6:09:41 PM
From: E_K_S	Read Replies (1) \| Respond to of 78670

Another one mentioned in the Energy Report 2/17/2011 that has popped over 10% today. The author suggests that TPLM can become a teenager and still be fairly valued. Re: Triangle Petroleum Corporation (TPLM) Jeffrey Hayden and Chad Mabry: Stay Very Oily Source: George Mack of The Energy Report 02/15/2011 February 17th, 2011 Message 27176956 From the article:"...TER: Ok, another one that you like? JH: Another one we like here is Triangle Petroleum Corporation (TSX.V:TPO; NYSE.A:TPLM). Again, we're sticking with the oily theme because we like oil better than gas. One of the things we really like about Triangle is that, relative to its market cap, it is one of the most leveraged companies to the Bakken. Right now, Triangle has about 15,000 net acres and is looking to push that to 25,000–30,000 net acres by the end of the year. If it's able to do that, I think there could be significant upside from current levels. *You've got a stock here that is currently around $7; if it can tack on another 10,000–15,000 acres at attractive prices, I think this stock could get into the teens.* TER: The first thing I noticed about Triangle was its low market cap of $187 million. You could move that stock with some demand for the shares. The $30 million allocated for the development of the Bakken acreage this year sounds like a large investment. Does that have to pay off for the company? JH: Well, its announced capex budget is actually about $72 million, and $30 million of that is just for acquiring additional leasehold. That's how it's going to grow to that 25,000–30,000 net acres. The company has another $42 million for drilling capex. This is a sizeable capital allocation for the company's size, which is why TPLM went out and made sure it had the financing in place in order to fund this program. As for whether it has to pay off, the simple answer is, yes—if it wants more funding. But with the predictability of the Bakken play, we think that's the likely scenario...." --------------------------------------------------------------------- Stock trading over $9.00/share in the AH. Any breakout above $9.20/share is virgin territory. Stock traded 4x avg daily volume today. Stock has relatively small float at 18 million shares. 25% (about 150K shares) of the buying came in the last hour today which moved the stock 10% higher. EKS Disclosure: I started a small tracking position 2/23/2011 @ $7.50/share