Triangle Petroleum (TPLM) may be one of the best values in the Bakken. There is plenty of risk with this name, but the reward could be quite large. This was one of my top picks for 2011, and it will be for 2012 also. Triangle has been aggressive in accumulating Bakken acres. It has been quite good at picking its non-operated acres, as its McKenzie County acreage has had impressive completions.
Triangle has $110 million in cash. Its one rig program is already funded and a three rig program by the second half of next year is possible if Triangle can find a JV partner. Station Prospect is an attractive acreage when compared to other fringe leaseholds. Because of this, JV prospects are good. It estimates production will increase from 600 Boe/d to a 2800 Boe/d 2012 exit rate in best-case scenerio.
By the end of 2012, Triangle will need approximately $25 million in cash to fund all operations. It is currently seeking a JV partner for its Station Prospect, which would more than cover this amount. I am guessing if Triangle finds a partner it will increase to a three rig program, plus purchase more acreage in McKenzie/Williams counties. I like Triangle as it is a value on per acre basis. This company comes with risk, but it could be a home-run-type stock.
