Trafina Energy Ltd.
TSX VENTURE : TFA.A

Trafina Energy Ltd.

July 11, 2011 07:30 ET

Trafina Energy Ltd. Provides Update on First McMullen Vertical Evaluation Well

CALGARY, ALBERTA--(Marketwire - July 11, 2011) -

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Trafina Energy Ltd. (TSX VENTURE:TFA.A) ("Trafina" or "the Company") is pleased to announce that it's much anticipated initial well in the McMullen area of Northeastern Alberta has been drilled, cored, tested and cased. Trafina Martin Hills 16-28-77-25W4 was rig-released early yesterday morning.

The 16-28 well encountered 8.5 meters of Wabasca A sand. Moreover, two variables necessary for commercial production have been quantified. Firstly, the well was pressure tested and the bottom hole pressure was 1,900 – 2,000 kpa, well above 1,500 kpa which seems to be the pressure necessary for adequate well performance. Secondly, oil recovered from the core has a viscosity of 27,000 to 30,000 centipoise which is significantly lower than 50,000 centipoise which has been the historical viability cut-off point for wells in the area.

Extremely wet conditions in the general area have suspended drilling and completion operations for the time being. The second well in Trafina's initial four well program will be drilled, and 16-28 will be completed, as soon as weather conditions permit.

Trafina is very encouraged with the information obtained from the drilling of the 16-28 well. Pressure and viscosity were the key unknown elements of the reservoir which needed to be quantified, and the preliminary information from the 16-28 well suggests that the necessary elements for production from the reservoir exist. Delineation of the reservoir will continue through the summer and fall, 2011, with first production anticipated for sometime in August, 2011.

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 potential for commercial production from the wells to be 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 well; timing for drilling of Trafina's second vertical evaluation well and completing the 16-28 well; the ability of the Company to successfully delineate the McMullen reservoir, and the timing thereof; and timing for first production from the McMullen area. 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)