TRAFINA Energy Ltd.
TSX VENTURE : TFA.A

TRAFINA Energy Ltd.

March 02, 2011 08:30 ET

Trafina Energy Launches Road Construction at McMullen After Receiving Approval to Drill Five Heavy Oil Wells

CALGARY, ALBERTA--(Marketwire - March 2, 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 that the Energy Resources Conservation Board (ERCB) has approved Trafina's application for five vertical oil well licences on its lands at McMullen, Alberta. As a result, construction of an all-season road to the McMullen lands has begun.

Trafina expects drilling to begin in June with plans to drill up to five evaluation wells by the end of 2011. The timing of the drilling is subject to weather conditions and rig availability.

The McMullen lands are prospective for Wabiskaw heavy oil. The Company has strategically selected the five drilling locations based on previous gas wells and net pay. This is expected to result in sufficient pressure to extract heavy oil without heat. Drilling costs are expected to be approximately $375,000 per well.

Satisfactory logs, core and production from the five evaluation wells at McMullen would be expected to lead to the drilling of up to eight slant wells per quarter section to effectively exploit the heavy oil reserves. The slant wells would be drilled from the existing vertical well surface location, significantly reducing the developmental footprint and expense. Trafina expects to submit an application to the ERCB within two weeks to drill up to eight slant wells per quarter section.

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 including, without limitation, modeling based on estimated primary recovery of original oil in place, the timing for and cost of drilling vertical evaluation wells and the subsequent drilling of slant wells (including, without limitation, the total number of such wells to be drilled), timing for completion of construction of the Company's all-season road and the 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)