TRAFINA Energy Ltd.
TSX VENTURE : TFA.A

TRAFINA Energy Ltd.

August 05, 2011 17:44 ET

Trafina Energy Ltd. Drills and Cases Third McMullen Vertical Evaluation Well

CALGARY, ALBERTA--(Marketwire - Aug. 5, 2011) -

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Trafina Energy Ltd. (TSX VENTURE:TFA.A) ("Trafina" or "the Company") is pleased to announce that its third well in the McMullen area of northeastern Alberta has been drilled, cored, tested and cased. Trafina Martin Hills at 11-28-77-25W4 (11-28) was rig-released earlier this week.

The 11-28 well encountered 7.5 metres of Wabasca A sand. Additionally, the two variables necessary for commercial production, pressure and viscosity, have been quantified. A pressure test performed on the well indicates a bottom-hole pressure between 1,650 and 1,950 kilopascals (kpa) and oil recovered from the core has a viscosity of approximately 30,000 centipoises. As disclosed in the news release on July 11, 2011, pressure needs to exceed 1,200 kpa and viscosity needs to be less than 50,000 centipoises.

As disclosed in the Company's news release on July 26, 2011, although the Wabasca zone could be construed to be a blanket sand, it is not a homogenous reservoir. Industry experience has shown that each well drilled may exhibit markedly different characteristics of pay thickness, porosity, water saturation, pressure and viscosity. Therefore, Trafina intends to announce the results of each vertical evaluation well drilled.

Completion operations are underway on the second well drilled in the program at 5-28, with first production anticipated for early next week. The service rig will then be moved to 16-28, which was the initial well drilled in the McMullen area, encountering 8.5 metres of Wabasca A sand. The 11-28 well will be completed immediately thereafter. Production tanks for 16-28 and 11-28 are under construction and should arrive on location before the end of August.

Trafina is very pleased with the results of its initial three well drilling program. As discussed in the past, the vagaries of reservoir and production characteristics are indeterminate at this point. Therefore, over the next 60 to 90 days, production testing will determine the focus and direction of the next phase of development in the McMullen area. This may include continued step-out delineation wells and/or pod development.

About Trafina

Trafina Energy is a junior oil and gas company based in Calgary, Alberta. The Company's main areas of interest are the McMullen and Pembina areas of Alberta and the Rangeview and Divide areas of southwest Saskatchewan, with other production in Wetaskiwin, Alberta. Trafina's shares and warrants trade on the TSX Venture Exchange under the symbols TFA.A and TFA.WT.A respectively.

Forward Looking Statements: This news release contains forward looking statements and forward looking information based on management's current expectations regarding the potential for commercial production from the wells drilled in the McMullen area of Alberta considering the characteristics of the reservoir based on preliminary pressure and viscosity information obtained from the initial testing of Trafina's 16-28, 5-28 and 11-28 wells; timing for completion of Trafina's vertical evaluation wells at McMullen; the ability of the Company to successfully delineate the McMullen reservoir, and the timing thereof; timing for first production and well production rates from the McMullen area and the determination of the next phase of development at McMullen, including commencement of and or timing of delineation wells or pod production at McMullen. 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 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)
    info@trafinaenergy.com

    Trafina Energy Ltd.
    Robert W. Lamond
    Chairman
    (403) 269-9889
    (403) 269-9890 (FAX)