TRAFINA Energy Ltd.
TSX VENTURE : TFA.A

TRAFINA Energy Ltd.

June 30, 2011 13:15 ET

Trafina Energy Ltd. Provides Oil Drilling Update and Announces Minor Property Dispositions, Option Grants and Intention to Seek Listing of Previously Issued Warrants

CALGARY, ALBERTA--(Marketwire - June 30, 2011) -

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

Trafina Energy Ltd. (TSX VENTURE:TFA.A) ("Trafina" or "the Company") is pleased to announce that it has commenced drilling a second horizontal Cardium oil well at Pembina, Alberta. The non-operated well (24.375% W.I.) is expected to finish drilling sometime late July, and if successful, will be completed with a multi-stage well fracturing operation.

The Company is also excited to report that it is about to commence its much anticipated drilling program at McMullen, Alberta. Four vertical test wells are slated to be drilled, commencing the week of July 3, 2011, weather permitting.

The Company has also completed the sale of various non-core properties, (Carson Creek, Retlaw, Ronalane, Brownfield and Viking Kinsella) for gross proceeds of $500,000 subject to normal course closing adjustments. Current production from the properties was approximately 35 boepd. The divestiture of these minor properties streamlines operations by eliminating scattered non-core assets and allows the Company to focus on its major areas of operations at McMullen, Pembina and Wetaskiwin in Alberta and Rangeview and Divide in southwest Saskatchewan.

Trafina also wishes to announce that its board of directors approved today the grant of options to employees, consultants, officers and directors to acquire an aggregate of 1,490,000 shares of the Company at a price of $0.35 per share exercisable on or prior to June 30, 2016 subject to the provisions of the Company's stock option plan.

Trafina's board of directors has also approved the Company making application to the TSX Venture Exchange for listing of the common share purchase warrants ("Warrants") issued pursuant to Trafina's public offering of units in April 2011. At closing, Trafina issued 25,715,000 units comprised of 25,715,000 Class A common shares and 25,715,000 Warrants, with each Warrant entitling the holder thereof to acquire one Class A common share at a price of $0.45 per share on or before October 21, 2012. Listing of the Warrants is subject to the Company making application to the TSX Venture Exchange to list the Warrants, and if conditionally approved will be subject to the Company satisfying all of the listing requirements of the TSX Venture Exchange.

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 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 timing of completing the drilling and success of the Company's non-operated horizontal well at Pembina and timing and success of drilling four vertical test wells 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. Listing of the warrants is subject to the Company making application to the TSX Venture Exchange to list the Warrants, and if conditionally approved will be subject to the Company satisfying all of the listing requirements of the TSX Venture Exchange. 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)