TRAFINA Energy Ltd.
TSX VENTURE : TFA.A

TRAFINA Energy Ltd.

February 23, 2009 19:09 ET

TRAFINA Energy Ltd. Renews Its Normal Course Issuer Bid and Completes Private Placement

CALGARY, ALBERTA--(Marketwire - Feb. 23, 2009) -

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) announces that the TSX Venture Exchange (the Exchange) has accepted the Company's Notice of Intention to purchase its Class A common shares from time to time in accordance with the normal course issuer bid procedures under applicable securities laws and the rules of the Exchange. Pursuant to the bid, the Company is permitted to purchase for cancellation up to 111,111 shares (having an aggregate value of up to $50,000 based on the February 20, 2009 closing price of $0.45) representing approximately 1.0% of the 11,302,472 shares currently issued and outstanding, during the 12-month period commencing February 27, 2009 and ending February 26, 2010. The brokerage firm conducting the bid on behalf of the Company is J.F.Mackie & Company Ltd.

The Company has initiated the bid because it believes that recent market prices of its shares do not reflect the underlying value of the Company. The bid is intended to provide liquidity and to enhance the potential future value of the remaining shares outstanding.

The Company purchased an aggregate of 80,000 shares at the average price of $0.51 per share during the period from December 20, 2007 to December 19, 2008 pursuant to its previous bid. All shares acquired pursuant to the previous bid were purchased on the open market through the facilities of the Exchange at the market price of the shares at the time of acquisition and were subsequently cancelled.

In addition, the Company is pleased to announce that is has completed a non-brokered private placement to Ben VanRootselaar, an employee of TRAFINA, of 100,000 Class A common shares of TRAFINA at a price of $0.40 per share for proceeds of $40,000. The 100,000 Class A common shares are subject to a four-month hold period expiring on June 4, 2009.

TRAFINA is a junior oil and gas company based in Calgary, Alberta. It is primarily a natural gas producer, with its main areas of interest being in Wetaskiwin, Jenner, Carson Creek/ Judy Creek and Bindloss; all of which are located in Alberta. TRAFINA's shares trade on the Exchange under the stock symbol TFA.A.

Forward-Looking Statements: This news release contains forward-looking statements based on management's current expectations. 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. The forward looking statements contained in this news release are made as at the date of this news release and, except as required by applicable securities laws, TRAFINA does not undertake any obligation to update publicly or otherwise any such statements.

The TSX Venture Exchange does not accept 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)
    Email: info@TRAFINAenergy.com