Trafina Energy files prospectus for $8-million offering

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

Mr. Kelly Ogle reports


Trafina Energy Ltd. has filed and obtained a receipt for a preliminary short form prospectus in connection with a marketed public offering of unitson a reasonable best-efforts agency basis for gross proceeds of a minimum amount of $5-million and up to a maximum amount of$8-million.Each unit will consist of one Class A common share and one transferable common share purchase warrant to acquire an additional common share for a period of 18 months from the date of closing. The offering will beconducted through a syndicate of agents lead by National Bank Financial Inc., and including Mackie Research Capital Corp., Wellington West Capital Markets Inc. and Cormark Securities Inc.

The offering will be priced in the context of the market with the final  terms of the offering to be determined at the time of pricing. The units will be offered in the provinces of British Columbia, Alberta and Ontario, and on a private placement basis in the United States, pursuant to exemptions from the registration requirements of the United States Securities Act of 1933, as amended. The offering is expected to close the week of April 18, 2011, and is subject to certain customary conditions and regulatory approvals, including, but not limited to, the approval of the TSX Venture Exchange.

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

We seek SafeHarbor...                                                                                                                                                                       ....Have a strong buy rating on this stock as the MicMullen area gets developed this year. $1.00 to $1.75                     MicMullen 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