TRAFINA Energy Ltd.

TRAFINA Energy Ltd.

June 14, 2007 09:00 ET

TRAFINA Energy Ltd. to Outline Plan for Balance of 2007 at Annual Shareholders' Meeting

CALGARY, ALBERTA--(Marketwire - June 14, 2007) - TRAFINA Energy Ltd. (TSX VENTURE:TFA.A) announces its plan to raise production by building on existing proven undeveloped properties, which will be discussed at its Annual General and Special Meeting of Shareholders today.

Rolly Valentine, Chief Executive Officer, said, "Our plan is to virtually double production by year-end without acquiring new properties. We have the wells, the reserves and the financial resources to grow internally, and we have the plan to do it."

TRAFINA's reserves were revised during 2006, owing to a lack of drilling activity. The company plans to exploit these reserves to raise production to a year-end target of 500 BOE/d, roughly twice the rate of 270 BOE/d with which it started 2007.

The company's plan involves a low-risk drilling program, which is now underway. It is in the process of drilling two coalbed methane (CBM) wells, and will participate in the drilling of four additional CBM wells. In addition, the company will tie-in, complete and recomplete 7.7 net existing wells, which are expected to result in increased production. TRAFINA's capital expenditures budget of $3.1 million is expected to cover the costs of this drilling program.

Increased production and reduced operating costs are expected to increase cash flow in the balance of 2007.

TRAFINA ENERGY LTD. is a junior oil and gas exploration, development and production company trading on the TSX Venture Exchange under the symbol TFA.A. Founded in 1991, TRAFINA is primarily a natural gas producer (85% gas, 15% oil), whose primary areas of interest include Wetaskiwin, Jenner, Carson Creek, Bindloss and Judy Creek in Alberta.


Use of the term barrels of oil equivalent ("BOE") or thousands of cubic feet of gas equivalent ("Mcf") may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

This 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, interest rates, prices of oil and natural gas, company production, cash flows and debt levels. In making these forward-looking statements certain material factors and assumptions were applied which included, but are not limited to, operational risks in exploration, development and production of oil and natural gas and production risks associated with sour hydrocarbons, dependence on third-party owned and operated production facilities, availability of skilled personnel and services, failure to obtain industry partner's, regulatory and other third-party consents and approvals, delays or changes in plans, risks associated with the uncertainty of reserve estimates, health and safety risks, the uncertainty of estimates and projections of reserves, production, costs and expenses, commodity prices and exchange rate changes. 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. Readers are cautioned not to place undue reliance on these statements. TRAFINA undertakes no obligation to update or revise any forward-looking statements expect as required by applicable securities laws.

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

Contact Information

  • TRAFINA Energy Ltd.
    Roland T. Valentine
    Chairman & CEO
    (403) 263-0800
    (403) 263-0811 (FAX)