TRAFINA Energy Ltd.
TSX VENTURE : TFA.A

TRAFINA Energy Ltd.

March 07, 2011 08:30 ET

Trafina Energy Ltd. Announces Acceleration of Warrants

CALGARY, ALBERTA--(Marketwire - March 7, 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") announces that it has elected to accelerate the expiry of the warrants (the "Warrants") originally issued on November 30, 2010 and December 2, 2010 as part of its private placement unit offering. Each Warrant entitles the holder thereof to acquire one common share ("Common Share") of Trafina at a price of $0.45 per share. The Warrants were originally set to expire on November 30, 2012 and will now expire on April 15, 2011. If all of the Warrants are exercised, the Company will receive gross proceeds of approximately $2,850,300.

Pursuant to the warrant indenture (the "Indenture") dated November 30, 2010 between Trafina and Computershare Trust Company of Canada (the "Trustee"), in the event that the 20-day volume weighted average trading price of the Common Shares on the TSX Venture Exchange is greater than $0.50 per share, the Company is entitled, upon 30 days prior written notice to all holders of the Warrants, to require all then outstanding Warrants to be exercised to acquire Common Shares. Trafina has given notice to the Trustee and the Trustee will mail today a notice to holders of the Warrants in accordance with the provisions of the Indenture. All Warrants that remain unexercised after April 15, 2011 shall be terminated without any compensation to the holder thereof.

The Warrants may be exercised prior to 4:30 p.m. (Calgary or Toronto local time as applicable) on April 15, 2011 by surrendering the Warrant certificate to Computershare Trust Company of Canada in Calgary or Toronto, along with the duly completed and executed exercise form attached to the Warrants. A certified cheque or bank draft payable to or to the order of the Company equal to the aggregate exercise price of such Warrants being exercised must be included with the Warrant certificate and exercise form.

The Common Shares issued upon exercise of the Warrants (issued on November 30, 2010 and December 2, 2010) shall be subject to a hold period that expires on March 31, 2011 and April 3, 2011 respectively.

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. 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)