Using something like this:
$data = file_get_contents('content.txt');
$pattern = '/---SECTIONSTART---\s{1,2}(.*?)\s{1,2}---SECTIONEND---/si';
preg_match_all($pattern, $data, $myArray);
will probably do most of what you want. You'll be interested in what's returned in $myArray[1], as the output will look something like this:
Array
(
[0] => Section Title
Section Paragraph 1
Section Paragraph 2
[1] => Section Title
Section Paragraph 1
Section Paragraph 2
[2] => Section Title
Section Paragraph 1
Section Paragraph 2
)
Looping through the array, using [man]explode/man to split each item on line breaks will give you the three separate entities.