TRAFINA Energy Ltd.

TRAFINA Energy Ltd.

November 05, 2009 08:30 ET

Trafina Energy Ltd. Offers to Sell Interest in Bindloss Unit #1 for $1.4 Million

CALGARY, ALBERTA--(Marketwire - Nov. 5, 2009) –


Trafina Energy Ltd. ("Trafina" or "the Company") (TSX VENTURE:TFA.A) is pleased to announce that it has entered into a non-binding letter of intent to sell its 3.42% interest in Bindloss Unit #1 in southern Alberta for approximately $1.4 million. Based on Trafina's net interest of approximately 21 barrels of oil equivalent (boe) per day, the sale price represents a value of $66,900 per flowing boe per day. Closing is expected to occur on or before November 30, 2009. The sale is subject to the satisfaction of a number of conditions, including execution of a definitive agreement on terms and conditions customary for a transaction of this nature, the satisfactory due diligence review by the purchaser and receipt of necessary regulatory approvals (including, without limitation, the TSX Venture Exchange).

The sale of Trafina's minor interests at Bindloss Unit #1 is another step in the Company's strategy of displaying prudent financial management and focusing on operated properties.

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.

Basis of Presentation and Cautionary Statement: Information in this press release expressed in 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 the sale of Bindloss Unit #1, including with respect to the proposed purchase price, the date for closing and the conditions to be satisfied prior to closing. 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)
    Trafina Energy Ltd.
    Robert W. Lamond
    (403) 269-9889
    (403) 269-9890 (FAX)