Trafina Announces Sale of Pembina Assets for $1.7 Million in Order to Focus on McMullen Heavy Oil Development Play

Trafina Energy Ltd. (TSXV:TFA.A) has entered into a sale agreement to sell the entire working interest in the Pembina Cardium area of Alberta for gross proceeds of $1.7 million.

The press release is quoted as saying:

Based on the Company’s current net production from the area of approximately 20 barrels of oil equivalent (boe) per day, the sale represents a value of $85,000 per flowing boe per day. Proceeds from the sale will be used for further development of the Company’s heavy oil prospects in the McMullen area of northeast Alberta.

Trafina continues to monitor production of its first three wells at McMullen, which were drilled in July of this year. The wells continue to be produced at restricted rates in order to better understand the characteristics of the reservoir. Current production from the three wells is 75 barrels of oil per day. First oil sales occurred on September 5, 2011, less than one month after initial production and less than one year from initial land acquisition.

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