CALGARY, May 15, 2013 /CNW/ - Twin Butte Energy Ltd. (TSX: TBE) ("Twin Butte") confirms that its cash dividend in respect of May 2013 production
will be $0.016 per share. The eligible dividend will be paid on June
17, 2013 to shareholders of record on May 31, 2013. The ex-dividend
date is May 29, 2013. The Board of Directors of Twin Butte declared the dividend
payable in either cash or common shares at the election of the
shareholder. This dividend has been designated as an "eligible
dividend" for Canadian income tax purposes.
Stock Dividend Program
Shareholders approved an amendment to Twin Butte's articles to implement
a Stock Dividend Program ("SDP") at the annual and special meeting of shareholders of Twin Butte held
on May 15, 2013. The SDP delivers increased optionality for eligible
Twin Butte shareholders by providing the opportunity to receive
dividends in the form of common shares of Twin Butte ("Common Shares") instead of receiving a cash dividend on the dividend payment date.
While it is similar to Twin Butte's existing Dividend Reinvestment Plan
("DRIP"), the SDP is expected to have certain favorable income tax attributes
and is available to both eligible Canadian and non-Canadian
shareholders. The current DRIP program will also remain in place as
another option for eligible Twin Butte shareholders.
Participation in the SDP is optional and will not affect shareholders'
dividends unless they elect to participate in the SDP. Eligible
shareholders may elect to participate in the SDP commencing with the
monthly cash dividend payable on June 17, 2013, to shareholders of
record on May 31, 2013 (the "June 2013 Dividend").
The benefits of the SDP are as follows:
Dividends will be paid to electing shareholders in the form of Common
Shares at 95% of the volume weighted average trading price of the
Common Shares on the Toronto Stock Exchange for the five trading days
preceding the dividend payment date;
All fees associated with the SDP will be paid by Twin Butte; and
Shareholders can elect to receive stock dividends on all or some of
their Common Shares.
Further details regarding the benefits and potential tax consequences of
the SDP are outlined in Twin Butte's Information Circular - Proxy
Statement dated March 28, 2013 (the "Information Circular") which is available on SEDAR at www.sedar.com and on Twin Butte's website at www.twinbutteenergy.com.
To participate in the SDP, registered shareholders must deliver a
properly completed confirmation notice to Valiant Trust Company ("Valiant") (in its capacity as plan agent under the SDP) not later than 4:30
p.m. (Calgary time) on the fourth business day immediately preceding a
dividend record date in order to receive stock dividends. Registered
shareholders who wish to receive the June 2013 Dividend as a stock
dividend pursuant to the SDP must deliver a completed and signed
confirmation notice to Valiant no later than 4:30 p.m. (Calgary time)
on Monday, May 27, 2013.
Beneficial shareholders (i.e. owners of Common Shares that are held
through a nominee) who wish to participate in the SDP should contact
the broker, investment dealer, financial institution or other nominee
who holds their Common Shares to inquire about the applicable enrolment
deadline and to request enrollment in the SDP.
The current DRIP will not be terminated as a result of the approval of
the SDP. Shareholders will still be able to participate in Twin Butte's
DRIP, should they wish to do so. In the event that a shareholder is
currently enrolled in the DRIP, they do not need to take any further
action to remain enrolled in the DRIP. Shareholders who wish to
participate in the SDP will need to enroll in the SDP. Cash dividends
will continue to be paid to those shareholders who are not enrolled in
either of the DRIP or SDP.
Participation in the SDP will not relieve shareholders of any liability
for taxes that may be payable on dividends. Shareholders should consult
their own tax advisors concerning the tax implementation of their
participation in the SDP having regard for their own personal
For further information regarding the SDP, please contact Valiant Trust
Company at 403-233-2801.
Election of Directors
Twin Butte is also pleased to announce that the nominees listed in the
Information Circular were elected as directors of Twin Butte. The
detailed results of the vote for the election of directors held at its
annual and special meeting of shareholders earlier today in Calgary,
Alberta are set out below.
On a vote by ballot, each of the following seven nominees proposed by
management was elected as a director of Twin Butte:
R. James Brown
John A. Brussa
David M. Fitzpatrick
Thomas J. Greschner
William A. Trickett
About Twin Butte
Twin Butte is a value oriented, intermediate producer with a significant
and growing scalable and repeatable drilling inventory focused on large
original oil in-place conventional heavy oil exploitation. With a
stable low decline production base Twin Butte is well positioned to
live within cash flow while providing shareholders with a sustainable
dividend and moderate per share production growth potential over the
This news release does not constitute an offer to sell or the
solicitation of an offer to buy the securities in the United States, in
any province or territory of Canada or in any other jurisdiction. The
Common Shares have not been, and will not be, registered under the
United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any U.S. state securities laws and may not be offered or sold in
the United States absent registration or absent an applicable exemption
from the registration requirements of the U.S. Securities Act and
applicable U.S. state securities laws. There shall be no sale of Common
Shares in any jurisdiction in which an offer to sell, a solicitation of
an offer to buy or a sale would be unlawful.
SOURCE: Twin Butte Energy Ltd.
For further information:
Twin Butte Energy Ltd.
President and Chief Executive Officer
Tel: (403) 215-2040
Fax: (403) 215-2055
R. Alan Steele
Vice President, Finance, Chief Financial
Officer and Corporate Secretary
Tel: (403) 215-2692
Fax: (403) 215-2055