Triangle USA Petroleum Corporation Files For Chapter 11 Bankruptcy Protection | June 30, 2016 Triangle USA Petroleum Corporation, a direct and wholly owned subsidiary of Triangle Petroleum Corporation (“TPC”), and affiliates filed for protection under Chapter 11of the United States Bankruptcy Code on June 30, 2016 in the United States Bankruptcy Court for the District of Delaware under Case No. 16-11566. The Debtors in these cases, along with the last four digits of each Debtor’s federal tax identification number, are Triangle USA Petroleum Corporation (0717); Foxtrot Resources LLC (6690); Leaf Minerals, LLC (9522); Ranger Fabrication, LLC (6889); Ranger Fabrication Management, LLC (1015); and Ranger Fabrication Management Holdings, LLC (0750). The address of the Debtors’ corporate headquarters is 1200 17th Street, Suite 2500, Denver, Colorado 80202. John R. Castellano is the managing director of AP Services, LLC, the Company’s financial advisor since April 2016, was appointed as the Chief Restructuring Officer of Triangle USA Petroleum Corporation (“TUSA”) on June 28, 2016, and now discusses the filing: Overview of Chapter 11 Filings “On the date hereof (the “Petition Date”), each of the Debtors commenced a case by filing a petition for relief under chapter 11 of the Bankruptcy Code. The Debtors have requested that the Chapter 11 Cases be jointly administered. The Debtors continue to manage and operate their business as debtors in possession pursuant to Bankruptcy Code sections 1107 and 1108. “To date, no creditors’ committee has been appointed in the Chapter 11 Cases by the U.S. Trustee. No trustee or examiner has been appointed in the Chapter 11 Cases.” The Debtors’ Businesses Introduction “TUSA and its Debtor subsidiaries (collectively, the “TUSA Debtors”) comprise an independent, growth-oriented oil and gas exploration and development company emphasizing the acquisition and development of unconventional shale oil and natural gas resources in the Williston Basin of North Dakota and Montana. TUSA’s corporate parent, TPC, is a vertically integrated, independent energy company with three lines of business. In addition to TUSA’s exploration and production (“E&P”) business, TPC’s wholly owned, non-Debtor subsidiary RockPile Energy Services, LLC and its affiliates (collectively, “RockPile”) provide oilfield services, focusing primarily on hydraulic pressure pumping and complementary services. Finally, TPC’s joint venture, Caliber Midstream Partners, L.P., and its affiliates (collectively, “Caliber”) provide crude oil, natural gas, and fresh and produced water gathering, processing, and transportation services to TUSA and other customers in the Williston Basin. In addition to its three principal business lines, Triangle formerly operated a fabrication enterprise through Debtor Ranger Fabrication, LLC (“Ranger”) and its subsidiaries (collectively, the “Ranger Debtors”). As discussed in greater detail below, Ranger ceased operations in early 2016 and has commenced Chapter 11 Cases alongside its sister companies in order to complete an orderly wind down.” History “TPC was founded in 2003 as Peloton Resources Inc. and has been operating as Triangle Petroleum Corporation since 2005. TUSA was incorporated in 2005. Triangle was initially headquartered in Calgary, Alberta, and concentrated on the acquisition and operation of oil and gas interests in Canada. Following a management change in late 2009, Triangle moved its corporate offices to Denver, Colorado, and recentered its business on acquiring non-operating interests in the Williston Basin.” “In 2011, Triangle transitioned its focus from non-operating to operating interests in the Williston Basin. Triangle spud its first well in October 2011. Over the next three years, Triangle’s business expanded rapidly, bolstered by favorable commodity prices and strong operational performance. TUSA aggressively expanded its footprint by acquiring attractive leasehold interests and related producing properties from Kodiak Oil & Gas, Marathon, and others. Concurrently, Triangle undertook a number of strategic initiatives to develop a strong platform for long-term growth. Recognizing that the relative lack of established oilfield services and midstream businesses in the Williston Basin presented a significant competitive opportunity, Triangle proactively expanded its business to include complementary oilfield services and gathering business lines. Triangle’s wholly owned subsidiary, RockPile, and its joint venture, Caliber, which provide oilfield services and gathering services, respectively, commenced operations in 2012.” TUSA’s E&P Business The Williston Basin “As noted, TUSA is a premier, independent E&P operator in the Williston Basin. Spanning approximately 150,000 square miles across the Dakotas, Montana, and southern Canada, the Williston Basin is among the largest shale oil reservoirs in North America. The principal geologic targets in the Williston Basin are the Bakken shale and Three Forks formations, which collectively contain an estimated 7.4 billion barrels of oil, 6.7 trillion cubic feet of natural gas, and 500 million barrels of natural gas liquids.” “Although the first Williston Basin well was drilled in 1951, production levels remained modest until the application of horizontal drilling, hydraulic fracturing, and other unconventional techniques to the Middle Bakken shale beginning in the mid-2000s. These techniques precipitated an exponential increase in production, peaking at over 1.2 million barrels per day in 2014 and turning North Dakota into the second largest oil-producing state in the country.” See Drilling Productivity Report, U.S. Energy Information Administration, April 2016 “As one of the largest unconventional plays in North America, the Williston Basin is highly competitive, with dozens of E&P operators—ranging from major integrated operators to small independent producers—active in the region.” “Oil and gas production in the Williston Basin is constrained by substantial technical and economic challenges. As noted, successful exploitation of the Bakken shale and Three Forks formations depends on unconventional and capital intensive exploration and drilling technologies, including horizontal drilling and hydraulic fracturing. The Williston Basin is further constrained by limited gathering infrastructure and long-distance pipeline capacity. As a result, Williston Basin operators rely more heavily on truck and rail transportation for gathering and interstate takeaway than operators in more mature plays. Owing to these and other factors, the Williston Basin has relatively high break-even costs and differentials, making it more susceptible to commodity price fluctuations than more established plays.” The TUSA Debtors’ Oil and Gas Assets “The TUSA Debtors’ oil and gas interests comprise approximately 3,500 leases across approximately 230,000 gross (approximately 100,000 net) acres in the Williston Basin, containing total proved reserves of approximately 47,707 Mboe as […]

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