CALGARY, ALBERTA--(Marketwire - May 16, 2012) -
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) is pleased to announce that it has entered into a definitive purchase and sale agreement (the "PSA") along with its joint interest partner in the Rangeview and Divide properties located in southwest Saskatchewan (the "Properties") to sell their entire working interest to an arm's-length third party for gross proceeds of $1.5 million. At closing Trafina's share of the proceeds will amount to $1.35 million, which represents its 90 percent undivided working interest in the Properties. Pursuant to the PSA the purchaser has paid non-refundable deposits totaling $100,000 to the Company and its joint interest partner. Closing of the sale of the Properties is expected to occur on May 31, 2012 and is subject to a number of conditions including, but not limited to, approval of the TSX Venture Exchange. The Company's share of proceeds from the sale will be used to reduce outstanding debt.
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.
Forward Looking Statements: This news release contains forward looking statements and forward looking information based on management's current expectations regarding the sale of the Properties including approval of the TSX Venture Exchange, the timing of the closing and the use of proceeds therefrom. There can be no assurance that the sale of the Properties will be completed as proposed or at all. 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 annual information form for the year ended December 31, 2011 dated April 23, 2012 and management's discussion and analysis for the year ended December 31, 2011 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.