TRAFINA Energy Ltd.
TSX VENTURE : TFA.A

TRAFINA Energy Ltd.

May 30, 2006 20:16 ET

TRAFINA Energy Ltd. Announces Its Unaudited Financial and Operating Results for the Three Months Ended March 31, 2006

CALGARY, ALBERTA--(CCNMatthews - May 30, 2006) - TRAFINA Energy Ltd. (TSX VENTURE:TFA.A) announces its unaudited financial and operating results for the three months ended March 31, 2006. Cash flow from operations for the three months ended March 31, 2006 totaled $759,093, or $0.13 per basic share, which represents a 44% increase over the comparative prior period. Net income for the three months ended March 31, 2006 decreased 58% to $50,750, or $0.01 per share. Capital expenditures increased by 451%, due to increased drilling and recompletion activity. 84% of TRAFINA's total production was represented by natural gas.

TRAFINA Energy Ltd. is also pleased to announce that Mr. Andrew G. Love was elected to the Board of Directors of the Corporation at the annual shareholders meeting. Mr. Love is a partner at Macleod Dixon LLP.



FINANCIAL HIGHLIGHTS Three Months Ended March 31
2006 2005 Change
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(in $ except shares outstanding) $ $ %
Total gross revenue 1,810,761 1,308,119 +38
Oil and gas revenue, net of royalties 1,499,836 1,114,050 +35
Income before income taxes 78,750 195,526 -60
Net Income 50,750 120,526 -58
Per common share (basic and diluted) 0.01 0.03 -67
Cash flow from operations 759,093 408,987 +86
Per common share - basic and diluted 0.13 0.09 +44
Average shares outstanding - basic 5,751,250 4,490,250 +28
Average shares outstanding - diluted 5,965,550 4,566,580 +31
Capital expenditures 4,157,703 754,702 +451
Bank debt 0 788,794 0
Rate of return on shareholders' equity
- Before tax 1% 6% -83
- After tax 1% 3% -67
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Three Months Ended March 31
OPERATING HIGHLIGHTS 2006 2005 Change

Daily Sales
Natural gas (Mcf/d) 1,732.1 1,677.3 +3
Oil (BOE/d) 51.2 16.1 +218
NGL (BOE/d) 3.9 5.0 -22
Total BOE/d 343.7 300.7 +14

Average Prices
Natural gas ($/Mcf) 9.68 8.15 +19
Oil ($/BOE) 51.42 29.31 +75
NGL ($/BOE) 53.56 45.09 +19
Total BOE ($/BOE) 57.03 47.80 +19
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The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • TRAFINA Energy Ltd.
    Roland T. Valentine
    Chairman & CEO
    (403) 263-0800
    or
    TRAFINA Energy Ltd.
    J. Terry McCoy
    President
    (403) 263-0800