TRAFINA Energy Ltd.
TSX VENTURE : TFA.A

TRAFINA Energy Ltd.

December 17, 2010 19:27 ET

Trafina Energy Ltd. Completes Previously Announced Private Placement Financing

CALGARY, ALBERTA--(Marketwire - Dec. 17, 2010) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

Trafina Energy Ltd. ("Trafina" or "the Company") (TSX VENTURE:TFA.A) is pleased to announce that it has completed its previously announced non-brokered private placement of Class A common shares ("Common Shares") of Trafina issued on a flow-through basis ("Flow-Through Shares") resulting in gross proceeds of $0.5 million. At closing Trafina issued 1,000,000 Flow-Through Shares at a price of $0.50 per share.

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.

The Common Shares issued pursuant to the private placement are subject to a hold period that expires April 18, 2011. Following closing of the private placement, Trafina has 29,861,262 Common Shares issued and outstanding.

About Trafina

Trafina Energy 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 and McMullen areas of Alberta with other operated production in Wetaskiwin and Ronalane. 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 Flow-Through Shares. 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)
    or
    Trafina Energy Ltd.
    Robert W. Lamond
    Chairman
    (403) 269-9889
    (403) 269-9890 (FAX)
    info@trafinaenergy.com