Trafina Puts Breaks On Saskatchewan Asset Sale

Terminated purchase of working interest in Rangeview and Divide assets targeting Shaunavon & Madison oil zones in SW SK, featuring 70 BO/d.

Trafina Energy Ltd., Calgary, (Toronto Venture: TFA-A) has terminated the sale of the company's entire working interest in its Rangeview and Divide assets in southwestern Saskatchewan to an undisclosed buyer for C$1.8 million.

Although the potential buyer paid an initial C$75,000 nonrefundable deposit, Trafina terminated the agreement after the buyer failed to pay an additional C$50,000 nonrefundable deposit by Jan. 18. The proposed purchaser continues to indicate an interest in the southwestern Saskatchewan assets, leaving open the possibility of a future sale agreement between the two parties.

The properties are currently producing approximately 70 barrels of oil per day from the Upper Shaunavon and Madison oil zones, in addition to some minor gas production. While Trafina’s focus is on its McMullen heavy oil project in northern Alberta, Trafina has identified future developmental potential on the southwest Saskatchewan properties by way of drilling several horizontal wells.