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 unitson a reasonable best-efforts agency basis for gross proceeds of aminimum 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 transferablecommon share purchase warrant to acquire an additional common share for aperiod of 18 months from the date of closing. The offering will beconducted through a syndicate of agents lead by National Bank FinancialInc., and including Mackie Research Capital Corp., Wellington WestCapital Markets Inc. and Cormark Securities Inc.

The offeringwill be priced in the context of the market with the final  terms of theoffering to be determined at the time of pricing. The units will beoffered in the provinces of British Columbia, Alberta and Ontario, andon a private placement basis in the United States, pursuant toexemptions 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 SafeHarbor.Have a strong buy rating on this stock as the MicMullen area getsdeveloped this year. $1.00 to $1.75 ,6months                                                                                                                                                                MicMullen Hear We Come: lowestimate of 167 million barrels of oil. The best estimate was198million barrels of OIIP with a high estimate of 235 million