Trafina Energy Ltd. has entered into a definitive purchase and sale agreement along with its joint interest partner in the Rangeview and Divide properties located in southwest Saskatchewan to sell their entire working interest to an arm's-length third party for gross proceeds of $1.5 million.
At closing Trafina's share of the proceeds will amount to $1.35 million, which represents its 90 percent undivided working interest in the Properties. Pursuant to the PSA the purchaser has paid non-refundable deposits totaling $100,000 to the Company and its joint interest partner.
Closing of the sale of the Properties is expected to occur on May 31, 2012 and is subject to a number of conditions including, but not limited to, approval of the TSX Venture Exchange. The Company's share of proceeds from the sale will be used to reduce outstanding debt.