TRAFINA Energy Ltd.

TRAFINA Energy Ltd.

October 21, 2010 20:47 ET

Trafina Energy Ltd. Announces Plan to Raise Up to $1.5 Million Through Private Placement Financing

CALGARY, ALBERTA--(Marketwire - Oct. 21, 2010) -


Trafina Energy Ltd. ("Trafina" or "the Company") (TSX VENTURE:TFA.A) is pleased to announce that the board of directors of the Company has approved a non-brokered private placement of up to $1.5 million of Class A common shares of Trafina to be issued on a flow-through basis at a price of $0.40 per flow-through share. No new control persons will be created as a result of the private placement.

Gross proceeds from the sale of the flow-through shares will be used to incur eligible exploration expenditures that will be renounced to subscribers as Canadian exploration expenses effective on or before December 31, 2010.

Closing of the private placement is expected to occur on or before November 30, 2010 and is subject to the approval of the TSX Venture Exchange. Assuming the full amount of the private placement is sold, up to 3,750,000 flow-through shares would be issued at closing. The actual number of flow-through shares sold pursuant to the private placement will not be known until closing, and such number may be less than the full amount offered for sale under the private placement.

The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

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 based on management's current expectations regarding the proposed private placement including, without limitation, with respect to the date for closing, the satisfaction of conditions to closing and the number of flow-through shares that may be sold pursuant to the private placement. 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)
    Trafina Energy Ltd.
    Robert W. Lamond
    (403) 269-9889
    (403) 269-9890 (FAX)