TRAFINA Energy Ltd.
TSX VENTURE : TFA.A

TRAFINA Energy Ltd.

November 18, 2008 09:00 ET

TRAFINA Energy Ltd. Announces Bought Deal Equity Financing

CALGARY, ALBERTA--(Marketwire - Nov. 18, 2008) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE U.S.

TRAFINA Energy Ltd. (TSX VENTURE:TFA.A)("TRAFINA") is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by Wolverton Securities Ltd. under which they have agreed to purchase for resale to the public, on a bought deal basis, 4,700,000 Class A Shares on a Flow-Through basis ("Flow-Through Shares") at $0.43 each for aggregate gross proceeds of $2,021,000. All sales of Flow-Through Shares will be made on a private placement basis pursuant to exemptions from the prospectus requirements of applicable securities laws.

Closing is anticipated to occur on or about November 28, 2008 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange and Trafina fulfilling the listing requirements of the TSX Venture Exchange. The Flow-Through Shares will be subject to a four-month hold period.

The proceeds of the private placements will be used to fund the Corporation's expenditures for its coal-bed methane well drilling program in the Wetaskiwin area of Alberta. Trafina's current production is 400 BOE per day with 50 BOE per day expected to be tied in prior to year end for an estimated exit rate of 450 BOE per day.

The securities offered have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent registration or applicable exemption from the registration requirements.

TRAFINA is a junior oil and gas company based in Calgary, Alberta. It is primarily a natural gas producer, with its main areas of interest being in Wetaskiwin, Jenner, Carson Creek/ Judy Creek and Bindloss; all of which are located in 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 based on management's current expectations. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable by TRAFINA at the time of preparation, may prove to be incorrect. The forward looking statements contained in this news release are made as at the date of this news release and, except as required by applicable securities laws, TRAFINA does not undertake any obligation to update any such statements. 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.

The TSX Venture Exchange does not accept 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)
    or
    TRAFINA Energy Ltd.
    Robert W. Lamond
    Chairman
    (403) 269-9889
    (403) 269-9890 (FAX)
    Email: info@TRAFINAenergy.com