TRAFINA Energy Ltd.
TSX VENTURE : TFA.A

TRAFINA Energy Ltd.

March 10, 2011 08:30 ET

Trafina Energy Acquires 18 Additional Sections at McMullen

CALGARY, ALBERTA--(Marketwire - March 10, 2011) -

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 the purchase at yesterday's Crown Land sale of a 100% working interest in 18 contiguous sections (11,520 acres) adjacent to its lands at McMullen in northeastern Alberta. "This purchase adds a significant number of drilling locations and increases the development potential at McMullen," said Kelly Ogle, Trafina's President and CEO.

Trafina pursued the additional McMullen lands based on analog Wabiskaw oil production in the area and after receiving an independent resource report dated January 31, 2011. The report included a Best Estimate of 198 million barrels of Discovered Oil Initially-in-Place ("OIIP") for Trafina's 15 sections of oil sands rights in Township 77, Ranges 25 and 26, west of the 4th Meridian, adjacent to the newly acquired lands. For details, see Trafina's news release dated February 2, 2011. Upon further review of the purchased lands, Trafina expects the estimated OIIP to increase.

On March 2, 2011 Trafina announced that the Energy Resources Conservation Board (ERCB) had approved Trafina's application for five well licences on its existing McMullen lands. As a result, the Company commenced construction of an all-season road to the lands. Construction and lease preparation are approximately one third complete, on time and on budget. The timing of drilling on the lands is subject to weather conditions and rig availability. In addition to the five approved licenses, Trafina is preparing to apply to the ERCB for two more drilling licences at McMullen. The Company expects to drill at least four of the seven vertical evaluation wells between spring breakup and the end of 2011.

The Company expects to file a Primary Recovery Scheme Application with the ERCB by March 15. Once approved, and depending on the success of the initial vertical well drilling program, as many as eight slant wells may be drilled from each existing vertical well surface lease.

About Trafina

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

Discovered Oil Initially-in-Place: Discovered Oil Initially-in-Place is the quantity of oil that is estimated, as of a given date, to be contained in known accumulations prior to production. OIIP is the most specific category of resources that can be assigned at this stage because there is insufficient data available at this time to sub classify. The data required to sub classify is data such as viscosity and flow test data that will be obtained when the vertical wells are drilled. There is no certainty that it will be commercially viable to produce any portion of the resources.

Best Estimate: This is considered to be the best estimate of the quantity that will actually be recovered. It is equally likely that the actual remaining quantities recovered will be greater or less than the best estimate. If probabilistic methods are used, there should be at least a 50 percent probability (P50) that the quantities actually recovered will equal or exceed the best estimate.

Forward Looking Statements: This news release contains forward looking statements and forward looking information including, without limitation, regarding estimated primary recovery of OIIP, the timing for drilling vertical evaluation wells and the subsequent drilling of slant wells (including, without limitation, the total number of such wells to be drilled), the receipt of necessary approvals for drilling to occur on the McMullen Lands, timing of construction of the Company's all-weather road and initial productivity and producing life of any such wells. Operational forward looking information is based on management's expectations regarding future growth, results of operations, production, future commodity prices and foreign exchange rates, future capital and other expenditures (including the amount, nature and sources of funding thereof), plans for and results of drilling activity, environmental matters, business prospects and opportunities and future economic conditions. 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, 2009 dated April 30, 2010 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)