TRAFINA Energy Ltd.
TSX VENTURE : TFA.A

TRAFINA Energy Ltd.

November 16, 2010 08:30 ET

Trafina Energy Completes First Cardium Oil Well and Provides Operational Update

CALGARY, ALBERTA--(Marketwire - Nov. 16, 2010) -

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Trafina Energy Ltd. (TSX VENTURE:TFA.A) ("Trafina" or "the Company") is pleased to announce the completion of its first Cardium oil well in the west Pembina area of west Central Alberta and to provide an operational update.

The well was successfully stimulated with a 432 tonne 20-stage fracture treatment and flowed to clean-up for 48 hours before being shut in. Over the 48-hour period, the well produced a total of 406 barrels of oil and liquids and 346 Mcf of natural gas, for combined production during the clean-up period of 463 barrels of oil equivalent (boe). During clean-up, approximately 37% of the load fluid used for the completion was also recovered. Due to the short duration of the clean-up period, the operator of the well is unable to predict a stabilized rate of production. Once placed on production, the operator will continue to monitor the well to optimize performance.

Production from the well is expected to commence in December 2010. Trafina has a 24.375% working interest in this well, the first of four (one net) non-operated Cardium horizontal wells the Company expects to drill. Drilling of the second well is expected to commence in the first quarter of 2011 with the drilling of up to two additional Cardium wells shortly thereafter contingent upon success.

Trafina is also pleased to announce that a drilling rig has been contracted to drill an Upper Shaunavon horizontal well at the Company's Rangeview/Divide property in southwest Saskatchewan. Drilling is projected to begin within a week. Based on the seismic interpretation of the surrounding acreage, a successful well would lead to a number of follow-up drilling locations. Also at Rangeview/Divide, the Company plans to re-complete a standing well in the Upper and Lower Shaunavon zones using a new completion technique. The completion entails hydraulically drilling four short-radius horizontal worm-holes, 5.12 centimeters in diameter and 100 meters in length. As with the Upper Shaunavon drill, a successful re-completion would set up a number of potential recompletions.

When Trafina's current management team was put in place in October 2008, Company average production was 280 boepd, weighted 90 per cent to natural gas. Over the past two years, Trafina has disposed of non-core assets and refocused the Company, concentrating on becoming more oil weighted while managing debt levels in an extremely soft gas price environment. Today, average Company production is estimated to be in excess of 450 boepd, weighted 28 percent to oil and 72 percent to gas, excluding the Cardium and Upper Shaunavon opportunities discussed above. If successful, these opportunities would continue the upward trend in oil production over the remainder of 2010 and into 2011.

About Trafina

Trafina is a junior oil and gas company based in Calgary, Alberta. The Company's main areas of interest are in the Rangeview and Divide areas of southwest Saskatchewan and in the Pembina area of Alberta with other operated production in Wetaskawin, 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 the Company's first Cardium well including expected production (including quantities and product mix) and timing for commencement of production, the ability to successfully optimize performance, the drilling of three additional Cardium well and the expected timing for drilling such wells, the drilling of an Upper Shaunavon horizontal well, timing for drilling such well and the potential for other similar follow-up drilling locations in the area, the drilling of a standing well in the upper and Lower Shaunavon zone, the anticipated success of the new completion technique and the potential for a number of other similar potential recompletions in the area. 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.

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.

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)