TRAFINA Energy Ltd.
TSX VENTURE : TFA.A

TRAFINA Energy Ltd.

April 21, 2011 09:06 ET

Trafina Energy Ltd. Completes Previously Announced $9 Million Public Offering

CALGARY, ALBERTA--(Marketwire - April 21, 2011) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Trafina Energy Ltd. ("Trafina" or "the Company") (TSX VENTURE:TFA.A) is pleased to announce that it has completed its previously announced public offering of units for gross proceeds of approximately $9 million (the "Offering"). The Offering was conducted through a syndicate of agents lead by National Bank Financial Inc. and including Mackie Research Capital Corporation, Wellington West Capital Markets Inc. and Cormark Securities Inc.

At closing, Trafina issued 25,715,000 units (comprised of 25,715,000 Class A common shares ("Common Shares") and 25,715,000 Common Share purchase warrants ("Warrants")) at a price of $0.35 per unit. Each Warrant issued pursuant to the Offering will entitle the holder thereof to acquire one Common Share at a price of $0.45 per share on or before October 21, 2012 (the "Expiry Date"). Following closing of the Offering, Trafina has 55,676,262 Common Shares issued and outstanding.

The Company intends to use the net proceeds of the Offering to repay a portion of the outstanding indebtedness under the Company's credit facilities, to reduce the Company's working capital deficiency and to fund a portion of the Company's 2011 capital program.

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 Wetaskiwin, 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 use of proceeds from the sale of units. Operational forward looking information is based on management's expectations regarding future growth, results of operations, production, future commodity prices and foreign exchange rates, future capital and other expenditures (including the amount, nature and sources of funding thereof), plans for and results of drilling activity, environmental matters, business prospects and opportunities and future economic conditions. 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 revised annual information form for the year ended December 31, 2010 dated April 8, 2011 and management's discussion and analysis for the year ended December 31, 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.

(TSX VENTURE:TFA.A)

Neither 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

    Trafina Energy Ltd.
    Robert W. Lamond
    Chairman
    (403) 269-9889
    (403) 269-9890
    info@trafinaenergy.com