TRAFINA Energy Ltd.
TSX VENTURE : TFA.A

TRAFINA Energy Ltd.

March 12, 2008 19:11 ET

TRAFINA Energy Ltd. Annual Reserves Information and Operational Update

CALGARY, ALBERTA--(Marketwire - March 12, 2008) - TRAFINA Energy Ltd. ("TRAFINA")(TSX VENTURE:TFA.A) announces today it has received its 2007 Evaluation of Oil & Gas Reserves as completed by the independent evaluation firm, McDaniel & Associates Consultants Ltd. Upon completion of the Company's audited Annual Financial Statements, which is expected by the end of April 2008, the Company's Form NI 51-101 F1 Reserves Data and Other Oil and Gas Information along with 51-101F2 and 51-101F3 for the year ended December 31, 2007 will be filed with applicable regulatory authorities pursuant to National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities. Copies of such filings will then be available electronically via SEDAR at www.sedar.com or by emailing TRAFINA at info@trafinaenergy.ca.

TRAFINA's gross proved and probable reserves (before royalties) as at December 31, 2007, as evaluated by McDaniel and Associates Consultants Ltd., based upon forecast prices and costs were 109 MBbls of oil and natural gas liquids (61 MBbls proved) and 4,752 Mmcf of natural gas (3400 Mmcf proved). Company gross proved and probable reserves of oil and natural gas liquids decreased by 14.3 MBbls over reserves as at December 31, 2006, due to not drilling any oil wells which would have replaced oil reserves produced during the year. Company gross proved and probable reserves of natural gas, net of production of 492 Mmcf in 2007, declined 892 Mmcf (4 Mmcf proved) over reserves as at December 31, 2006, due principally to net downward revisions in reserve estimates of 1100 Mmcf (164 Mmcf proved) offset by discoveries/extensions of 208 Mmcf (160 Mmcf proved).

During 2007 TRAFINA Energy participated in the drilling of seven wells, all at Wetaskiwin, Alberta. Four were 40% joint working interest wells, drilled by the operator, targeting coal bed methane (CBM) gas in the Horse Shoe Canyon (HSC) formation. All of these wells were successful and we expect they will be brought on production following completion of a pipeline system in the area during 2008. The other three wells are operated and were drilled by TRAFINA. One was a successful 60% joint working interest CBM HSC, one was a 100% working interest CBM HSC well that requires further evaluation and the other was a 100% working interest unsuccessful well drilled for Mannville oil. With respect to wells drilled in prior years, during 2007 TRAFINA participated in completion activities relative to six wells; all at Wetaskiwin. Three CBM HSC operations were conducted by the operator on 40% joint working interest wells and all were successful, with commencement of production expected during 2008. TRAFINA Energy operated the other three wells; one being a 100% working interest unsuccessful completion in the Mannville gas, one being a successful CBM HSC completion (net 50% working interest) and the final being a 50% working interest unsuccessful well in the Mannville gas.

Forward Looking Statements: This press release contains forward-looking statements, including statements relating to management's approach to operations, expectations relating to the number of wells, amount and timing of capital projects including, without limitation, recompletion of wells, and future reserves. The forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. 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.

TRAFINA is an oil and gas company based in Calgary, Alberta. TRAFINA's shares trade on the TSX Venture Exchange under the stock symbol TFA.A.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • TRAFINA Energy Ltd.
    Thomas R. Holland
    (403) 263-0800
    (403) 263-0811 (FAX)
    Website: www.trafinaenergy.ca