TRAFINA Energy Ltd.
TSX VENTURE : TFA.A

TRAFINA Energy Ltd.

April 22, 2008 20:32 ET

TRAFINA Energy Ltd.: Annual Reserves Information and Operational Update

CALGARY, ALBERTA--(Marketwire - April 22, 2008) - TRAFINA Energy Ltd. ("TRAFINA") (TSX VENTURE:TFA.A) announces today it has filed its Reserves Data and Other Oil and Gas Information, including the statements and reports required under Form NI 51-101 F1, NI 51-101 F2 and NI 51-101 F3, pursuant to National Instrument 51-101, Standards of Disclosure for Oil and Gas Activities for the year ended December 31, 2007. Copies of the filings can be obtained electronically via SEDAR at www.sedar.com or by emailing TRAFINA at info@trafinaenergy.ca.

TRAFINA's gross proved and probable reserves as at December 31, 2007, as evaluated by McDaniel and Associates Consulting Ltd. based upon forecast prices and costs, were 108.8 MBbls of oil & NGLs (60.6 MBbls proved) and 4,752 Mmcf of natural gas (3,400 Mmcf proved). The proved and probable reserves of oil increased by 1.1 MBbls (4.2 MBbls proved) over reserves as at December 31, 2006, due to improved recovery. The proved and probable reserves of natural gas declined 892 Mmcf (4 Mmcf proved) over reserves as at December 31, 2006, due principally to net downward revisions in reserve estimates of 1,100 Mmcf (164 Mmcf proved), production of 492 Mmcf in 2007, offset by discovery/extensions of 208 Mmcf (160 Mmcf proved).

During 2007, the Company participated in the drilling of seven (7) wells at Wetaskiwin. Four (4) were successful non operated 40% interest CBM Horseshoe Canyon (HSC) wells. Three (3) were TRAFINA Energy operated; one (1) successful 60% interest CBM HSC, one (1) 100% CBM HSC well that requires further evaluation and one (1) 100% interest unsuccessful well drilled for Mannville oil.

During 2007 recompletions (and completions) were conducted on six (6) working interest wells at Wetaskiwin which were drilled in prior years. TRAFINA Energy operates three (3) of the wells, a successful 50% interest CBM HSC well, and two (2) unsuccessful Mannville gas wells, one 100% and one 50%. The three (3) outside operated completions were all successful 40% interest CBM HSC wells.

In the Wetaskiwin area of Alberta, a negative revision of reserves was booked to proved and probable reserves due to well performance issues associated with shallow Horseshoe Canyon (CBM) gas wells; due to the expiration of a P&NG lease covering one section for which probable reserves had been previously assigned, and due to 3 Horseshoe Canyon wells not being tied into production facilities.

In the Bindloss area of Alberta, proved and probable reserves increased by 17.0 Mmcf (2.0 MBOE) due to better than predicted performance gas wells.

In the Carson Creek area of Alberta, proved and probable reserves increased by 78.0 Mmcf (13.0 MBOE) due to better than expected well performance related to production from the 14-08-06-11 W5M well.

In the Jenner area of Alberta, TRAFINA decreased its reserves of proved and probable natural gas by 143.0 Mmcf (23.8 MBOE ) and increased its oil reserves by 13.8 MSTB; for an overall reduction of 15.0 net MBOE. The change in reserve bookings is due to actual versus predicted well performance.

In February 2008, the Company announced its decision to participate as to its 40% working interest in a 24 well Horseshoe Canyon CBM drilling program as proposed by the operator, at Wetaskiwin. Prior to spring break up 19 joint wells were drilled. The operator has installed the first phase of a 12 inch gas pipeline which will enable gas sales from some of the previously drilled wells and some of the current program wells. Construction of the final phase of the line will commence in Q3 2008, facilitating commencement of production from all of the jointly drilled wells by the end of 2008.

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
    Interim President & CEO
    (403) 263-0800
    (403) 263-0811 (FAX)
    Website: www.trafinaenergy.ca