/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES/
CALGARY, June 28 /CNW/ - TWIN BUTTE ENERGY LTD. TBE - TSX (Twin Butte or
the Company) is pleased to announce that it has successfully closed the
previously announced acquisition of producing assets, undeveloped land, and
infrastructure in the Leaman/Thunder area of West Central Alberta for
approximately $28.2 million after standard closing adjustments.
The acquisition was closed with purchase metrics of $42,175/boe/d,
$18.31/boe proved and $12.39/boe proved plus probable (net of land value).
With the closing of the acquisition, Twin Butte now has the following
- Production of over 2,000 boe/d (75% gas)
- Reserves of 5.8 MMboe (P+P)
- A reserve life index of 7.6 years (P+P)
- Tax pools of approximately $158 million
- Net undeveloped land totaling 50,300 acres
- Low net debt of approximately $20 million and credit facilities of
$40 million (post equity financing)
- Net debt to annualized second half 2007 cash flow ratio of
approximately one times
- Significantly enhanced operational, exploitation and exploration
Twin Butte is an aggressive, growth-oriented junior oil and natural gas
company, with common shares trading on the Toronto Stock Exchange under the
symbol "TBE". The Company will continue to seek out strategic acquisition
opportunities that will enhance shareholder value and utilize the Company's
tax pool base. The Company has a significant tax pool base in excess of
$158 million that will enable it to aggressively pursue an "acquire and
exploit" strategy and will continue to present a significant advantage to the
Company relative to its peers in the foreseeable future.
Certain information regarding the Company contained herein may constitute
forward-looking statements within the meaning of applicable securities laws.
Forward-looking statements may include estimates, plans, anticipations,
expectations, intentions, opinions, forecasts, projections, guidance or other
similar statements that are not statements of fact. Although the Company
believes that the expectations reflected in such forward-looking statements
are reasonable, it can give no assurance that such expectations will prove to
be correct. These statements are subject to certain risks and uncertainties
and may be based on assumptions that could cause actual results to differ
materially from those anticipated or implied in the forward-looking
statements. The Company's forward-looking statements are expressly qualified
in their entirety by this cautionary statement.
In this news release, reserves and production data are commonly stated in
barrels of oil equivalent ("boe") using a six to one conversion ratio when
converting thousands of cubic feet of natural gas ("Mcf") to barrels of oil
("bbl") and a one to one conversion ratio for natural gas liquids ("NGLs" or
"ngls"). Such conversion may be misleading, particularly if used in isolation.
A boe conversion ratio of 6 Mcf: 1 bbl is based on energy equivalency
conversion method primarily applicable at the burner tip and does not
represent a value equivalency at the wellhead.
The TSX does not accept responsibility for the adequacy or accuracy of
this news release.
For further information:
For further information: Ron Cawston, President and C.E.O., (403)