TRAFINA Energy Ltd.
TSX VENTURE : TFA.A

TRAFINA Energy Ltd.

October 21, 2009 19:28 ET

Trafina Energy Ltd. Doubles Production From Acquired Assets, Sells Interests in Non-Operated Properties for $650,000

CALGARY, ALBERTA--(Marketwire - Oct. 21, 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 recent field work has resulted in the doubling of production from its recently acquired assets in Alberta and Saskatchewan. Production from the assets has increased to approximately 100 barrels of oil equivalent per day ("boepd") (50 net) from 55 boepd (27 net) at the time of the acquisition in August.

Trafina has now completed half of the scheduled operations on its new assets, which consist of a 50% working interest in operated production at Retlaw, Ronalane and Viking /Kinsella, all in Alberta, and the McGuffin area in Saskatchewan. The purchase price of the assets was $10 ($5 net) plus a sliding scale royalty and the assumption of related operating, abandonment and reclamation liabilities. Since closing in mid-September, a number of wells have been re-activated and worked over. In addition, Trafina has purchased two (one net) additional sections of Crown land at Ronalane and is in the process of licensing three drilling locations targeting the Sawtooth formation.

Trafina also announces that it has sold 50% of its interests in various non-operated properties in the Jenner area of Alberta. The sale price of the 25 boepd of net production sold was $650,000. Proceeds from the disposition have been used to reduce the Company's debt.

In light of the disposition, Trafina estimates its current production to be approximately 425 boepd.

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, Ronalane and Viking /Kinsella, all in Alberta, and the McGuffin area in Saskatchewan. Trafina also has minor interests in Jenner, Carson Creek/ Judy Creek and Bindloss, Alberta. Trafina's shares trade on the TSX Venture Exchange under the stock symbol TFA.A.

Basis of Presentation and Cautionary Statement: Information in this news release expressed in barrels of oil equivalent (boes) is derived by converting natural gas to oil in the ratio of six thousand cubic feet (mcf) of natural gas to one barrel (bbl) of oil. Boes may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf: 1 bbl is based on an 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, among other things, assumed operating, abandonment and reclamation liabilities. 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 involves 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)
    info@trafinaenergy.com
    or
    Trafina Energy Ltd.
    Robert W. Lamond
    Chairman
    (403) 269-9889
    (403) 269-9890 (FAX)