Twin Butte Energy Ltd. Announces Completion of Strategic $9.9 Million Asset Disposition



    CALGARY, June 3 /CNW/ - Twin Butte Energy Ltd. ("Twin Butte" or the
"Company") (TSX-TBE) is pleased to announce that it has completed a
disposition of assets in North East British Columbia for $9.9 million,
including closing adjustments. Proceeds from the sale will reduce Twin Butte's
net debt position which post transaction is expected to be approximately $40
million at the end of Q2. The sale will not affect the Company's existing bank
line as only minimal reserves and approximately 35 boe/d of production were
associated with the assets. The disposition included 1,847 net undeveloped
acres of land. Twin Butte's bank lines are $65 million leaving approximately
$25 million of excess availability providing substantial financial flexibility
to pursue asset or corporate acquisition opportunities.
    The asset disposition is one of a number of strategic moves the new
management team at Twin Butte has, and will continue to make, to improve
overall corporate strength and efficiency. These actions ensure that Twin
Butte is positioned to take advantage of the future growth potential of our
considerable undeveloped land and reserve base.
    Twin Butte's new management team continues to refocus the company in core
areas that have the potential to be significant growth platforms. The
migration to more repeatable play types, predominantly in North East British
Columbia and North West Alberta is ongoing. Twin Butte's inventory of oil and
gas opportunities currently exceeds 100 locations or $200 million of potential
capital activity.
    A significant portion of the Company's inventory is oil based, which
provides compelling economics particularly with current Alberta royalty
incentives and strengthened pricing. The Company has a number of large
Original Oil in Place, low decline properties at Jayar and Provost as well as
resource style Viking and Gething gas plays, all of which are horizontal
and/or multistage fracture stimulation candidates. These properties and
opportunities provide substantial depth to Twin Butte's inventory ensuring
long term production and reserve growth potential.
    Twin Butte has the operational and financial flexibility to re-allocate
capital between its numerous drill ready opportunities, or to asset or
corporate acquisition opportunities. Twin Butte is a value oriented junior
producer with expanding operations in North East British Columbia and North
West Alberta. With a stable low decline production base, the Company is well
positioned to maintain production levels during periods of low capital
spending and to grow as commodity prices strengthen. The Company remains
focused and committed to growth in 2009 through value added corporate
consolidation thereby enhancing the long term potential growth profile for our
shareholders.

    Reader Advisory

    Certain information regarding Twin Butte set forth in this news release
including management's assessment of the Company's future plans and
operations, the effect on the Company and on shareholders of Twin Butte,
production increases and future production levels contain forward-looking
statements that involve substantial known and unknown risks and uncertainties.
These forward-looking statements are subject to numerous risks and
uncertainties, certain of which are beyond Twin Butte's control including,
without limitation, the impact of general economic conditions, industry
conditions, volatility of commodity prices, currency fluctuations, imprecision
of reserve estimates, environmental risks, competition from other producers,
lack of availability of qualified personnel, stock market volatility, ability
to access sufficient capital from internal and external sources and
uncertainty related to the effect of the Arrangement. Twin Butte's actual
results, performance or achievements may differ materially from those
expressed in, or implied by, these forward-looking statements and,
accordingly, no assurance can be given that any events anticipated by the
forward-looking statements will transpire or occur, or if any of them do so,
what benefits that Twin Butte will derive there from. 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 Twin Butte's website
(www.twinbutteenergy.com). Furthermore, the forward-looking statements
contained in this joint news release are made as at the date of this joint
news release 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 ("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.
    

    %SEDAR: 00001562E




For further information:

For further information: Twin Butte Energy Ltd.: 600, 334 - 8th Avenue
S.W., Calgary, Alberta, T2P 2Z2; Jim Saunders, President and Chief Executive
Officer, (403) 215-2040 or R. Alan Steele, Vice President Finance and Chief
Financial Officer, (403) 215-2692; www.twinbutteenergy.com

Organization Profile

Twin Butte Energy Ltd.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890