TRAFINA Energy Ltd.

TRAFINA Energy Ltd.

March 30, 2011 20:05 ET

Trafina Energy Announces Financing

CALGARY, ALBERTA--(Marketwire - March 30, 2011) - Trafina Energy Ltd. ("Trafina" or the "Company")(TSX VENTURE:TFA.A) is pleased to announce that it has filed and obtained a receipt for a preliminary short form prospectus in connection with a marketed public offering of units ("Units") on a reasonable best efforts agency basis for gross proceeds of a minimum amount of $5,000,000 and up to a maximum amount of $8,000,000 (the "Offering"). Each Unit will consist of one Class A common share ("Common Share") and one transferable Common Share purchase warrant ("Warrant") to acquire an additional Common Share for a period of eighteen months from the date of closing. The Offering will be conducted through a syndicate of agents lead by National Bank Financial Inc. and including Mackie Research Capital Corporation, Wellington West Capital Markets Inc. and Cormark Securities Inc. (the "Agents").

The Offering will be priced in the context of the market with the final terms of the Offering to be determined at the time of pricing. The Units will be offered in the Provinces of British Columbia, Alberta and Ontario and on a private placement basis in the United States pursuant to exemptions from the registration requirements of the United States Securities Act of 1933, as amended. The Offering is expected to close the week of April 18, 2011 and is subject to certain customary conditions and regulatory approvals, including but not limited to the approval of the TSX Venture Exchange.

The Corporation intends to use the proceeds from the Offering to repay a portion of the outstanding indebtedness under certain credit facilities, to reduce the Corporation's working capital deficiency and to fund a portion of the Corporation's 2011 capital program. 

The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

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.

Forward Looking Statements: This news release contains forward looking statements and forward looking information regarding, among other things, the size, timing and terms of the best efforts financing and the use of proceeds from such financing. The financing may not be completed on these terms or at all. Readers are cautioned that assumptions used in the preparation of such statements 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, 2010 and the preliminary prospectus dated March 30, 2011 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)