Trafina Energy files prospectus for $8-million offering

2011-03-30 20:24 ET - News Release

Mr. Kelly Ogle reports


TrafinaEnergy Ltd. has filed and obtained a receipt for a preliminary shortform prospectus in connection with a marketed public offering of units ona reasonable best-efforts agency basis for gross proceeds of a minimumamount of $5-million and up to a maximum amount of$8-million.Each unitwill consist of one Class A common share and one transferable commonshare purchase warrant to acquire an additional common share for aperiod of 18 months from the date of closing. The offering willbe conducted through a syndicate of agents lead by National BankFinancial Inc., and including Mackie Research Capital Corp., WellingtonWest Capital Markets Inc. and Cormark Securities Inc.

Theoffering will be priced in the context of the market with the finalterms of the offering to be determined at the time of pricing. The unitswill be offered in the provinces of British Columbia, Alberta andOntario, and on a private placement basis in the United States, pursuantto exemptions from the registration requirements of the United StatesSecurities Act of 1933, as amended. The offering is expected to closethe week of April 18, 2011, and is subject to certain customaryconditions and regulatory approvals, including, but not limited to, theapproval of the TSX Venture Exchange.

The corporation intends touse the proceeds from the offering to repay a portion of the outstandingindebtedness under certain credit facilities, to reduce thecorporation's working capital deficiency and to finance a portion of thecorporation's 2011 capital program.

We seek Safe Harbor.......Have a strong buy rating on this stock as theMicMullen area gets developed this year. $1.00 to $1.75MicMullen Hear We Come: low estimate of 167 million barrels of oil. The best estimate was198million barrels of OIIP with a high estimate of 235 million