News: Vertical well and asset sale Trafina Places Fourth McMullen Oil Well on Production and Announces Potential Sale of Southwest Saskatchewan Assets
CALGARY, ALBERTA--(Marketwire - Dec. 21, 2011) -
Trafina Energy Ltd. (TSX VENTURE:TFA.A) ("Trafina" or the "Company") is pleased to provide an update on its previously disclosed drilling of a fourth vertical well at 08-28-077-25 W4M at McMullen, Alberta. Coring and pressure test data revealed an encouraging well and as a result the well was placed on production on November 29, 2011. First oil sales from the 08-28 well occurred December 17, 2011. Current production from three producing vertical wells at McMullen is in excess of 90 barrels of oil per day. Trafina is very encouraged by production results to date and if rates continue to be positive, the Company expects that it may drill as many as twelve slant wells in the upcoming winter drilling season.
Trafina is also pleased to announce that it has entered into a non-binding letter of intent (the "LOI") whereby Trafina has agreed to sell its entire working interest in its Rangeview and Divide properties located in southwest Saskatchewan (the "Properties") to an arm's-length private energy company. If completed, proceeds (including adjustments) from the sale of the Properties are anticipated to be approximately $1.8 million. Pursuant to the LOI the prospective purchaser has paid a non-refundable deposit of $75,000 to the Company. The sale of the Properties is subject to execution of a definitive purchase and sale agreement, which, if executed, is anticipated to provide for closing to occur on January 15, 2012 and to be subject to a number of conditions including, but not limited to, approval of the TSX Venture Exchange. If completed, net proceeds from the sale of the Properties will be used to reduce outstanding debt and for further development of the Company's McMullen property.
About Trafina
Trafina is a junior oil and gas company based in Calgary, Alberta. The Company's main areas of interest are in the McMullen area of Alberta with other operated and non-operated production in Wetaskiwin. Trafina's shares trade on the TSX Venture Exchange under the stock symbol TFA.A and warrants trade under the stock symbol TFA.WT.A.