TRAFINA Energy Ltd.
TSX VENTURE : TFA.A

TRAFINA Energy Ltd.

November 12, 2009 08:30 ET

Trafina Energy Ltd. Completes Purchase of Debt and Security

CALGARY, ALBERTA--(Marketwire - Nov. 12, 2009) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

Trafina Energy Ltd. (TSX VENTURE:TFA.A) ("Trafina" or "the Company") is pleased to announce that it has completed the previously announced purchase from a Canadian bank all of the outstanding indebtedness and liabilities owing to the bank by a private Alberta oil and gas corporation and security documents granted by the debtor to the bank. The total purchase price was $620,000.

The debtor's assets include a 100% working interest in more than 41 sections of land in southwest Saskatchewan. When the properties were shut-in in February 2009, production averaged approximately 160 barrels of oil equivalent per day (boe/d), consisting of approximately 120 barrels per day (bbl/d) of oil and 240 thousand cubic feet (Mcf/d) of natural gas. Total proved plus probable reserves associated with the properties were estimated by GLJ Petroleum Consultants Ltd. to be approximately 1.3 million barrels of oil equivalent effective December 31, 2007.

Trafina intends to make an application to the court to appoint a receiver to realize on its security. It is not known at this time if a receiver will be appointed or if Trafina will be successful in realizing on its security.

About Trafina

Trafina is a junior oil and gas company based in Calgary, Alberta. The Company's main area of interest is in Wetaskiwin with operated production in Retlaw and Ronalane in Alberta. Trafina also has non-operated production in Viking /Kinsella, Alberta and the McGuffin area in Saskatchewan and minor interests in Jenner and Carson Creek/Judy Creek, Alberta. Trafina's shares trade on the TSX Venture Exchange under the stock symbol TFA.A.

Cautionary Statement: This news release references barrels of oil equivalent (BOE). BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 thousand cubic feet (Mcf): 1 barrel (Bbl) is based on energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Forward Looking Statements: This news release contains forward looking statements and forward looking information based on management's current expectations regarding the ability of Trafina to realize on the debt and security purchased from the bank including, without limitation, by court appointed receiver or otherwise. Statements relating to "reserves" are deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described can be profitably produced in the future. Readers are cautioned that assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Forward looking statements involve significant known and unknown risks and uncertainties. Reference is made to Trafina's annual information form for the year ended December 31, 2008 dated April 27, 2009 for a description of some of the risks that could affect the Company's future results and could cause results to differ materially from those expressed in the Company's forward looking statements. The forward looking statements contained in this news release are made as at the date hereof and, except as required by applicable securities laws, Trafina does not undertake any obligation to update publicly or otherwise any such statements.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Trafina Energy Ltd.
    Kelly J. Ogle
    President and Chief Executive Officer
    (403) 263-0800
    (403) 263-0811 (FAX)
    or
    Trafina Energy Ltd.
    Robert W. Lamond
    Chairman
    (403) 269-9889
    (403) 269-9890 (FAX)
    Email: info@trafinaenergy.com