Twin Butte Energy Ltd. Announces Aquisition of Private Company



    CALGARY, June 22 /CNW/ - Twin Butte Energy Ltd. (TSX: TBE) ("Twin Butte")
is pleased to announce that it has entered into a definitive agreement with
Can-Able Energy Ltd. ("Can-Able"), a private company, pursuant to which Twin
Butte has agreed to make an offer to acquire all of the issued and outstanding
common shares of Can-Able. Can-Able's primary assets are based in West Central
Alberta at Ansell and Ricinus, and currently produce approximately 250 boe/day
consisting primarily of high heat content natural gas and associated natural
gas liquids.
    Pursuant to the proposed transaction, the holders of common shares of
Can-Able will be offered 0.58 of a common share of Twin Butte for every common
share of Can-Able, for aggregate share consideration of approximately
8,229,968 common shares of Twin Butte. Twin Butte will also assume
approximately $2.1 million of associated debt leading to a total consideration
of approximately $10.3 million.

    
    ACQUISITION HIGHLIGHTS

    -   Current production of approximately 250 boe/d, of high heat content
        natural gas and associated natural gas liquids, with a reserve life
        index in excess of 9 years on a proved producing basis;
    -   Proved reserves totalling 1,483 mboe and proved plus probable
        reserves totalling 2,222 mboe as per an independent reserve
        evaluation dated December 31, 2008;
    -   Excellent acquisition metrics of $9.50 per boe, including forward
        capital on a proved plus probable basis;
    -   A significant drilling inventory with 16 identified deep basin style,
        drill ready locations including horizontal multistage fracture
        stimulation candidates;
    -   Low operating costs of approximately $10.00 per boe;
    

    The acquisition further strengthens and high grades Twin Butte's
extensive drilling inventory while establishing a new core area with a
repeatable play type with significant running room.

    Twin Butte Energy Ltd. is a Calgary, Alberta based oil and natural gas
company. The common shares of Twin Butte are listed on the Toronto Stock
Exchange under the symbol "TBE".

    Forward-looking Statements

    This news release contains statements that constitute "forward-looking
information" or "forward-looking statements" (collectively "forward-looking
information") within the meaning of applicable securities legislation. This
forward-looking information includes, among others, statements regarding: the
offer (the "Offer") to acquire all of the issued and outstanding common shares
of Can-Able, the completion of the Offer and the outcome of the Offer,
including regarding transaction values and accretion, estimates of reserves,
plans for drilling, estimates of production, management's assessment of the
companies future plans and operations, the effect of the Offer on the
companies and on shareholders of Can-Able and timing of matters relating to
the acceptance of the Offer.
    Various assumptions were used in drawing the conclusions or making the
forecasts and projections contained in the forward-looking information
contained in this news release. Forward-looking information is based on
current expectations, estimates and projections that involve a number of
risks, which could cause actual results to vary and in some instances to
differ materially from those anticipated by Twin Butte and described in the
forward-looking information contained in this news release. Undue reliance
should not be placed on forward-looking information. The material risk factors
include, but are not limited to: failure to make the Offer, failure to
complete the Offer, failure to realize anticipated synergies, the uncertainty
of estimates and projections relating to production and reserves, the
possibility that government policies or laws may change or governmental and
regulatory approvals may be delayed or withheld, changes in tax laws, changes
in royalty rates, and Twin Butte's ability to implement its business strategy.
Readers are cautioned that the foregoing list of risk factors is not
exhaustive. Additional information on these and other factors that could
affect Twin Butte's results are included in reports on file with Canadian
securities regulatory authorities and may be accessed through the SEDAR
website (www.sedar.com) or at Twin Butte's website (www.twinbutteenergy.com).
    Forward-looking information is based on the estimates and opinions of
Twin Butte's management at the time the information is released and Twin Butte
does not undertake any obligation to update publicly or to revise any of the
forward-looking statements, whether as a result of new information, future
events or otherwise, except as may be required by applicable securities laws.

    In this news release, reserves and production data are commonly stated in
barrels of oil equivalent using a six to one conversion ratio when converting
thousands of cubic feet of natural gas to barrels of oil and a one to one
conversion ratio for natural gas liquids. Such conversion may be misleading,
particularly if used in isolation. A boe conversion ratio of six thousand
cubic feet of natural gas to one barrel of oil 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.
    

    %SEDAR: 00001562E




For further information:

For further information: Jim Saunders, 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; Website: www.twinbutteenergy.com

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Twin Butte Energy Ltd.

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