Trafina Energy Ltd. reports that the planned sale of its southwest Saskatchewan properties for consideration of $1.35 million net to Trafina will not proceed at this time due to closing conditions for such sale not being satisfied and an acceptable alternative arrangement with the purchaser not being reached.

The Company also announces that the Company's lender under its secured credit facility has made a demand on the Company for repayment of all indebtedness under the facility, which is currently in the amount of approximately $3.34 Million. The demand is due to the Company being in breach of certain of its covenants under the facility as a result of the Company's current debt and liquidity problems associated with, among other things, the continuing depressed commodity price environment.

Tags: Trafina Energy Ltd.