Trafina Energy buys a 100% working interest in the 18 contiguous sections (11,520 acres) adjoining its lands at McMullen in northeastern Alberta. This acquisition includes considerable number of drilling sites and augments the growth potential at McMullen.
After receiving an independent resource report dated January 31, 2011 and based on analog Wabiskaw oil production in the area, Trafina pursued extra McMullen lands. The report incorporated the best estimate of 198 million barrels of Discovered Oil Initially-in-Place ("OIIP") for Trafina's 15 sections of oil sands rights in Township 77, Ranges 25 and 26, west of the 4th Meridian, next to the newly acquired lands.
On March 2, 2011, the Energy Resources Conservation Board (ERCB) has approved Trafina's application for five well licenses on its existing McMullen lands. Accordingly, the Company begins construction of an all-season road to the lands. Weather conditions and availability of drill rigs determine the timing of drilling on the lands. Besides the five approved licenses, Trafina is preparing to apply to the ERCB for two more drilling licenses at McMullen. The Company anticipates drilling in at least four of the seven vertical estimation wells between spring dissolution and the end of 2011.
The Company looks forward to submitting a Primary Recovery Scheme Application to the ERCB by March 15. As many as, eight slant wells may be drilled from each existing vertical well surface lease depending on the success of the initial vertical well drilling program and on the receipt of approval.
Source: http://www.trafinaenergy.com/