Twin Butte Energy Ltd. Announces Financial and Operating Results for the
Three Months and Year Ended December 31, 2009

CALGARY, March 23 /CNW/ - Certain selected financial and operational information for the three months and year ended December 31, 2009 and December 31, 2008 comparatives are set out below and should be read in conjunction with Twin Butte's audited financial statements complete with the notes to the financial statements and related MD&A.

Highlights

Twin Butte Energy Ltd. ("Twin Butte" or the "Company") (TSX: TBE) is pleased to announce its financial and operational results for the three months and year ended December 31, 2009. For further information on year end reserves please refer to the February 16, 2010 press release.

    
    -------------------------------------------------------------------------
                        Three months ended           Twelve months ended
                            December 31                  December 31
    -------------------------------------------------------------------------
                      2009        2008    %          2009        2008    %
                                       Change                         Change
    -------------------------------------------------------------------------
    Financial
     ($ thousands,
     except per
     share amounts)
    -------------------------------------------------------------------------
      Petroleum and
       natural gas
       sales        22,150      13,158    68%      48,425      69,100   (30%)
      Funds flow(1)  7,714       5,243    47%      17,631      31,096   (43%)
        Per share
         basic &
         diluted      0.08        0.12   (33%)       0.28        0.74   (62%)
      Net loss        (961)     (4,001)  (76%)    (12,688)     (2,595)  389%
        Per share
         basic
         & diluted   (0.01)      (0.09)  (89%)      (0.20)      (0.06) (233%)
      Capital
       expenditures  8,061       9,211   (12%)     16,309      42,372   (62%)
      Capital
       dispositions (9,499)          -      -     (19,313)          -      -
      Corporate
       acquisi-
       tions       120,539           -      -     131,178      57,252   129%
      Net debt(2)  102,911      50,309   105%     102,911      50,309   105%
    -------------------------------------------------------------------------
    Operating
    -------------------------------------------------------------------------
    Average daily
     production
      Crude oil
       (bbl per
       day)          1,810         806   125%         971         745    30%
      Natural gas
       (Mcf per
       day)         21,664      12,669    71%      14,743      12,474    18%
      Natural gas
       liquids
       (bbl per
       day)            279         121   131%         176         125    41%
      Barrels of oil
       equivalent
       (boe per
       day, 6:1)     5,699       3,039    88%       3,604       2,949    22%
    Average sales
     price
      Crude oil
      ($ per bbl)    66.22       57.00    16%       62.42       94.34   (34%)
      Natural gas
       ($ per Mcf)    4.78        7.18   (33%)       4.26        8.69   (51%)
      Natural gas
       liquids
       ($ per bbl)   62.07       50.88    22%       52.54       81.03   (35%)
      Barrels of
       oil
       equivalent
       ($ per boe,
       6:1)          42.24       47.07   (10%)      36.82       64.03   (42%)
    Operating
     netback
     ($ per boe)
      Petroleum and
       natural gas
       sales         42.24       47.07   (10%)      36.82       64.03   (42%)
      Realized gain
       (loss) on
       financial
       derivatives    0.38        2.43   (84%)       2.49       (3.39) (173%)
      Royalties      (7.27)      (8.54)  (15%)      (4.73)     (10.76)  (56%)
      Operating
       expenses     (12.94)     (13.31)   (3%)     (13.19)     (12.54)    5%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
      Transportation
       expenses      (1.58)      (2.47)  (36%)      (2.11)      (2.65)  (20%)
      Operating
       netback(3)    20.83       25.18   (17%)      19.28       34.69   (44%)
    Wells drilled
      Gross           13.0         1.0 1,200%        18.0        21.0   (14%)
      Net              6.4         0.6   967%        11.5        20.1   (43%)
      Success (%)     100%        100%      -         91%         90%     1%
    -------------------------------------------------------------------------
    Common Shares
    -------------------------------------------------------------------------
    Shares
     outstanding,
     end of
     period    109,714,335  47,128,425   133% 109,714,335  47,128,425   133%
    Weighted
     average
     shares
     outstan-
     ding -
     basic     100,261,128  43,948,559   128%  62,392,250  41,883,092    49%
    -------------------------------------------------------------------------
    (1) Funds flow means cash flow from operating activities before changes
        in non-cash working capital and expenditures on asset retirement
        obligations.  See Management's Discussion & Analysis Non-GAAP
        Measures.
    (2) Net debt is defined as the sum of working capital deficiency and
        other liabilities excluding financial derivative assets or
        liabilities.  Net debt is a  Non-GAAP Measure.
    (3) Operating netback is a Non-GAAP Measure and is the net of revenue,
        realized gains (loss) on financial derivatives, royalties, operating
        and transportation expenses.
    

Report to Shareholders

Highlights of Twin Butte's highly successful 2009 year of redefinition are as follows:

    
    -   Completed two strategic corporate acquisitions valued at $131.2
        million which significantly enhanced the Company's oil exposure,
        drilling inventory and overall asset quality.

    -   Executed an exploration and development capital program of $16.3
        million which included the drilling of 18 gross (11.5 net) wells at a
        91 percent success rate.

    -   Completed five non-core asset dispositions valued at $19.3 million to
        enhance balance sheet flexibility and further focus the Company's
        asset base. An additional three dispositions valued at $6.5 million
        are anticipated to be closed in Q1. Net debt at the end of 2009 was
        $102.9 million which will likely be reduced to approximately
        $80 million by the end of Q1 2010.

    -   More than doubled corporate production at the end of 2009 to 6,300
        boe per day (post dispositions) from 3,000 boe per day at the end of
        2008 positioning the Company for cost effective organic growth
        through 2010. Twin Butte anticipates corporate production will exceed
        6,600 boe per day (post dispositions) in April.

    -   Increased total proved plus probable oil and gas reserves by 188
        percent or 19.9 million barrels of oil equivalent ("boe") to 30.5
        million boe. At December 31, 2009, 60 percent of the Twin Butte's
        reserves were on stream.

    -   Generated superior finding, development and acquisition ("FD&A")
        costs of $5.98 per boe on a proved plus probable basis and $9.59 per
        boe on a proved basis.

    -   Generated a capital recycle ratio of 3.2 times on proved plus
        probable FD&A.

    -   Increased reserve life index to 13.3 years based on proved plus
        probable reserves and 8.2 years based on proved reserves.

    -   Established a net asset value per share based on proved plus probable
        reserves of $3.13 ($3.06 fully diluted).
    

Corporate:

Subsequent to year end 2009, the enhancement and redefinition of the Company continues. Twin Butte was pleased to complete the issuance of 18.4 million shares for gross proceeds of $23 million in early February 2010. Proceeds of the financing as well as noncore asset dispositions has significantly strengthened the Company's balance sheet with anticipated net debt at the end of Q1 2010 to be approximately $80 million with a current credit facility of $120 million.

The Company's program of noncore asset rationalization continues. In 2009 we closed the disposition of five producing and nonproducing assets for $19.3 million representing 220 boe per day of production. In Q1 of 2010 we anticipate closing an additional three dispositions valued at $6.5 million representing approximately 150 boe per day. The Company has been able to realize excellent value from its asset sales in an extremely competitive disposition market. Twin Butte will continue with a methodical program of disposing of noncore assets to further focus the Company's operations and to generate cash to supplement the planned capital program in our core growth areas.

Operations:

Activity levels remain brisk in our core growth areas. The Company anticipates spending a minimum of $35 million (net of provincial drilling credits) in 2010 with over 90 percent focused on oil based activities. Oil production weighting will grow to over 50 percent by the end of the year based on this capital plan. Twin Butte is in an enviable position in that it has a significant inventory of both oil and gas drilling locations (185 net oil and 230 net gas) therefore allowing us to prioritize capital to maximize return and minimize payout times.

Although the Company anticipates generating rates of return in excess of 50 percent at $5.00/mcf gas pricing on our gas activities, the current disparity between oil and natural gas prices combined with the short payout of capital on our oil based expenditures is driving our focus on oil. Gas focused capital will be spent to define three different scalable gas plays in the Eastern Plains and the Deep Basin of Alberta. This derisking will ensure the Company's significant resource style gas growth opportunities are ready to be executed upon when commodity pricing dictates.

This base capital program will be funded entirely by corporate cash flow therefore preserving and enhancing balance sheet flexibility. Proceeds of noncore asset sales post Q1 will be directed to increasing the base capital program in our core growth areas.

At Frog Lake in the Eastern Plains of Alberta the Company has recently completed a 23 gross (12 net) oil well drilling program at a 100 percent success rate. This follows a 14 gross (7 net) oil well program completed in Q4 of 2009. Production from Frog Lake has increased appreciably since the Company acquired the property late in 2009 and the Company anticipates this profitable growth to continue throughout 2010. A 15 square km 3D seismic survey was completed in Q1 which could significantly enhance our current sizable drilling inventory of 300 (150 net) locations. Over the remainder of 2010 we anticipate drilling an additional 60 (30 net) wells at Frog Lake. With current netbacks exceeding $35 per bbl the Company is generating recycle ratios of greater than 4 times and payouts of less than 10 months. With over 350 million barrels of oil in place based on pre seismic geologic mapping, and a low recovery factor to date of two percent, significant upside potential remains at Frog Lake for years to come.

At Bruce in the Eastern Plains, two 100 percent interest horizontal wells were recently drilled. The first delineation well to a Q4 2009 oil discovery has commenced production at over 100 boe per day (80% oil). Based on 3D seismic coverage the opportunity exists for an additional 10 wells on the play. Additional pool delineation drilling will commence post breakup in Q2 and will continue over the remainder of 2010.

The second horizontal well targeted gas in the Viking formation and was completed with 8 multistage fracs. Early production testing appears positive therefore suggesting an additional derisking well will be drilled later in 2010. The Company has amassed a significant land position of over forty, 100 percent interest sections on the play. This fit for purpose scalable play type is exactly the direction our exploration efforts have been focused. Assuming our technical assumptions are correct, over 100 net horizontal wells could be drilled on existing lands.

In the Deep Basin of Alberta the Company plans to drill in the 2nd half of the year a minimum of two horizontal wells which will be multistage fracture treated targeting the liquids rich Cardium and Notikewin for gas. These wells should derisk the plays which have been already successfully developed by offset competitors. Each of these plays could lead to scalable multiwell programs when gas prices return to better economic levels.

Outlook:

As highlighted by the Company's 2009 financial performance and year end reserve report, 2009 was a year of positive growth and transition. The acquisition of Can-able Energy Inc. in July and Buffalo Resources Corp. in October were significant steps in our plan to build a larger, more focused, higher asset quality Company. Our organic exploration and development program of approximately $16.3 million, while significantly weighted to the fourth quarter ($8.0 million), maintained our base production while establishing scalable play types in core areas that can make a meaningful difference to future corporate growth. Organic growth will continue through 2010 with our first quarters results being only an early indication of the growth potential of our established drilling inventory.

When the new management team joined Twin Butte in late 2008, they established a new strategy and corporate direction. Throughout 2009 we have remained disciplined in pursuing this strategy. We have done what we said we would do. This has led to all aspects of corporate performance being positive in 2009. At year end over 80 percent of our corporate reserve evaluation was focused in our core growth areas. Our plan is working and year end 2009 performance shows that. The plan will continue to unfold in 2010.

On a corporate note we would like to acknowledge the guidance and direction the Company received from Paul Starnino and Paul Colborne, who have stepped down from their board positions in the first quarter of 2010. These two gentlemen provided excellent insight into the business and we wish them all the best in their future endeavors.

Twin Butte is a value oriented emerging intermediate producer with a significant repeatable and scalable drilling inventory focused on large original oil in place and large original gas in place play types. With a stable low decline production base the Company is well positioned to live within cash flow while providing shareholders with sustainable growth potential over both the short and long term. The 2010 capital plan is highly focused to two core areas (Alberta Plains and West Central Alberta/Deep Basin) while providing the flexibility to quickly be accelerated should economic conditions allow. Twin Butte is committed to continually enhance its asset quality while focusing on per share growth.

    
    On behalf of the Board of Directors,

    Jim Saunders
    President and C.E.O.

    March 23, 2010
    

Financial Statements

The Company's audited financial statements and associated Management's Discussion and Analysis ("MD&A") for the year ended December 31, 2009 will be available on Twin Butte's website at www.twinbutteenergy.com located within "Investor Info" under "Financial Documents". Additionally, these documents will be filed, in due course, on the System for Electronic Document Analysis and Retrieval ("SEDAR"). These documents can be retrieved electronically from the SEDAR system by accessing Twin Butte's public filings under "Search for Public Company Documents" within the "Search Database"

module at www.sedar.com. To the extent investors do not have access to the internet, copies of the audited financials and related MD&A can be obtained on request without charge by contacting Investor Relations at (403) 215-2045 or at 410, 396 - 11 Avenue SW, Calgary, Alberta, T2R 0C5.

Below is selected financial statement information for the three months and year ended December 31, 2009 and comparative data for December 31, 2008. Readers are reminded that the below financial statements should be read in conjunction with Twin Butte's audited financial statements complete with the notes to the financial statements and related MD&A.

    
    TWIN BUTTE ENERGY LTD
    Balance Sheets (unaudited)

    -------------------------------------------------------------------------
                                                   December 31   December 31
                                                          2009          2008
    -------------------------------------------------------------------------

    Assets

    Current Assets
      Accounts receivable                         $ 20,758,953  $  9,416,746
      Deposits and prepaid expenses                  3,181,862     1,651,966
      Financial derivatives (note 10)                        -     2,075,039
      -----------------------------------------------------------------------
                                                    23,940,815    13,143,751

    Future income taxes (note 8)                     2,402,381     1,324,465

    Property and equipment (note 3)                282,520,568   176,197,152

    -------------------------------------------------------------------------
                                                  $308,863,764  $190,665,368
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Liabilities and Shareholders' Equity

    Current Liabilities
      Accounts payable and accrued liabilities    $ 29,713,116  $ 15,745,084
      Bank indebtedness (note 4)                    96,342,448    45,632,924
      Financial derivatives (note 10)                1,224,178             -
      -----------------------------------------------------------------------
                                                   127,279,742    61,378,008

    Other liabilities (note 5)                         795,871             -

    Asset retirement obligation (note 6)            14,855,867     9,158,775

    -------------------------------------------------------------------------
                                                   142,931,480    70,536,783

    Shareholders' Equity
      Share capital (note 7)                       188,005,760   131,863,112
      Warrants (note 7)                                912,408             -
      Contributed surplus (note 7)                   4,184,787     2,747,850
      Deficit                                      (27,170,671)  (14,482,377)
      -----------------------------------------------------------------------
                                                   165,932,284   120,128,585

    -------------------------------------------------------------------------
                                                  $308,863,764  $190,665,368
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Commitments and contingencies (note 11)

    See accompanying notes to financial statements



    TWIN BUTTE ENERGY LTD
    Statements of Loss, Comprehensive Loss and Deficit (unaudited)

    -------------------------------------------------------------------------
                              Three Months Ended
                                  December 31         Year Ended December 31

                              2009          2008          2009          2008
    -------------------------------------------------------------------------

    Revenue
      Petroleum and
       natural gas
       sales          $ 22,150,129  $ 13,157,912  $ 48,425,012  $ 69,099,751
      Royalties         (3,802,156)   (2,386,512)   (6,209,764)  (11,613,745)
      Realized gain
       (loss) on
       financial
       derivatives         197,065       680,082     3,271,357    (3,660,486)
      Unrealized gain
       (loss) on
       financial
       derivatives
       (note 10)          (385,476)    2,029,758    (3,299,217)    2,635,277
      -----------------------------------------------------------------------
                        18,159,562    13,481,240    42,187,388    56,460,797

    Expenses
      Operating          6,783,057     3,720,871    17,350,344    13,538,560
      Transportation       827,235       690,974     2,777,148     2,857,328
      General and
       administrative    1,901,267     1,287,997     5,193,161     4,140,549
      Stock based
       compensation        128,895       114,410     1,436,938     1,735,843
      Interest           1,319,295       508,189     2,534,883     2,193,059
      Depletion,
       depreciation
       and accretion     8,681,309     8,212,889    30,402,398    30,739,092
      -----------------------------------------------------------------------
                        19,641,058    14,535,330    59,694,872    55,204,431

    -------------------------------------------------------------------------
    (Loss) income
     before income
     taxes              (1,481,496)   (1,054,090)  (17,507,484)    1,256,366

    Income taxes
      Future tax
      (recovery)
       expense (note 8)   (520,873)    2,946,451    (4,819,190)    3,851,671
      -----------------------------------------------------------------------
                          (520,873)    2,946,451    (4,819,190)    3,851,671

    -------------------------------------------------------------------------
    Net loss and
     comprehensive loss   (960,623)   (4,000,541)  (12,688,294)   (2,595,305)

    Deficit, beginning
     of period         (26,210,048)  (10,481,836)  (14,482,377)  (11,887,072)

    -------------------------------------------------------------------------
    Deficit, end of
     period           $(27,170,671) $(14,482,377) $(27,170,671) $(14,482,377)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Basic & diluted
     loss per share   $      (0.01) $      (0.09) $      (0.20) $      (0.06)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Weighted average
     common shares
     outstanding
      Basic            100,261,128    43,948,559    62,392,250    47,128,425
      Diluted          100,261,128    43,948,559    62,392,250    41,981,359


    See accompanying notes to financial statements




    TWIN BUTTE ENERGY LTD
    Statements of Cash Flows (unaudited)

    -------------------------------------------------------------------------
                              Three Months Ended
                                  December 31         Year Ended December 31

                              2009          2008          2009          2008
    -------------------------------------------------------------------------
    Cash provided by
     (used in):

    Operations
      Net loss        $   (960,623) $ (4,000,541) $(12,688,294) $ (2,595,305)
      Items not
       involving cash:
        Depletion,
         depreciation
         and accretion   8,681,309     8,212,889    30,402,398    30,739,092
        Future tax
        (recovery)
         expense          (520,873)    2,946,451    (4,819,190)    3,851,671
        Unrealized
        (gain) loss
         on financial
         derivatives       385,476    (2,029,758)    3,299,217    (2,635,277)
        Stock based
         compensation      128,895       114,410     1,436,938     1,735,843
        ---------------------------------------------------------------------
                         7,714,184     5,243,451    17,631,069    31,096,024
      Expenditures on
       asset
       retirement
       obligations         (47,831)       79,358      (537,013)      (88,617)
      Changes in
       non-cash
       working
       capital          (2,523,361)   (3,873,964)     (552,718)   (8,563,180)
      -----------------------------------------------------------------------
        Accounts
         receivable    (10,501,331)       (5,562)   (9,564,878)       (5,572)
        Deposits
         and prepaid
         expenses          (77,463)            -       (60,041)            -
        Accounts payable
         and accrued
         liabilities     9,064,048       (30,408)    9,072,202        45,445
        ---------------------------------------------------------------------

    -------------------------------------------------------------------------
                         5,142,993     1,448,845    16,541,339    22,444,227

    Financing
      Change in
       bank
       indebtedness    (13,114,977)    8,871,804   (18,266,329)    8,619,341
      Issuance of
       share capital             -     5,000,400             -     5,000,400
      Issuance of
       share capital
       on exercise of
       stock options             -             -             -        26,190
      Bank financing
       and share issue
       costs                    (0)     (348,675)      (95,075)     (442,425)
      -----------------------------------------------------------------------
                       (13,114,977)   13,523,529   (18,361,404)   13,203,506

    Investing
      Expenditures on
       property and
       equipment        (8,061,480)   (9,210,790)  (16,308,818)  (42,372,070)
      Acquisition
       expenditures       (893,504)            -    (1,064,074)     (362,668)
      Proceeds on
       disposition of
       property and
       equipment         9,498,622             -    19,313,422             -
      Changes in
       non-cash
       working
       capital           7,428,345    (5,761,584)     (120,466)    7,087,005
      -----------------------------------------------------------------------
                         7,971,983   (14,972,374)    1,820,064   (35,647,733)

    -------------------------------------------------------------------------
    Decrease in cash
     and cash
     equivalents                 -             -             -             -

    Cash and cash
     equivalents,
     beginning of
     period                      -             -             -             -
    -------------------------------------------------------------------------
    Cash and cash
     equivalents,
     end of period    $          -  $          -  $          -  $          -
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Cash interest
     paid             $  1,306,025  $    518,008  $  2,440,435  $  1,985,434

    See accompanying notes to financial statements
    

Twin Butte Energy Ltd. is a publicly traded Canadian energy company involved in the exploration, development and production of natural gas and crude oil in western Canada.

Forward-Looking Statements

In the interest of providing Twin Butte's shareholders and potential investors with information regarding Twin Butte and Buffalo, including management's assessment of the future plans and operations of Twin Butte, certain statements contained in this news release constitute forward-looking statements or information (collectively "forward-looking statements") within the meaning of applicable securities legislation. Forward-looking statements are typically identified by words such as "anticipate", "continue", "estimate", "expect", "forecast", "may", "will", "project", "could", "plan", "intend", "should", "believe", "outlook", "potential", "target" and similar words suggesting future events or future performance. In addition, statements relating to "reserves" are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described exist in the quantities predicted or estimated and can be profitably produced in the future.

With respect to forward-looking statements contained in this news release, we have made assumptions regarding, among other things: future capital expenditure levels; future oil and natural gas prices and differentials between light, medium and heavy oil prices; future oil and natural gas production levels; future exchange rates and interest rates; our ability to obtain equipment in a timely manner to carry out development activities; our ability to market our oil and natural gas successfully to current and new customers; the impact of increasing competition; our ability to obtain financing on acceptable terms; and our ability to add production and reserves through our development and exploitation activities. Although Twin Butte believes that the expectations reflected in the forward looking statements contained in this document, and the assumptions on which such forward-looking statements are made, are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking statements included in this document, as there can be no assurance that the plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur, which may cause Twin Butte's actual performance and financial results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, the following: volatility in market prices for oil and natural gas; general economic conditions in Canada, the U.S. and globally; and the other factors described under "Risk Factors" in Twin Butte's most recently filed Annual Information Form available in Canada at www.sedar.com. Readers are cautioned that this list of risk factors should not be construed as exhaustive.

The forward-looking statements contained in this news release speak only as of the date of this news release. Except as expressly required by applicable securities laws, Twin Butte does not undertake any obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this news release are expressly qualified 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 regarding Twin Butte Energy Ltd., the reader is invited to visit the Company's website at www.twinbutteenergy.com.

%SEDAR: 00001562E

SOURCE Twin Butte Energy Ltd.

For further information: For further information: Jim Saunders, President and Chief Executive Officer, Telephone: (403) 215-2040, Fax: (403) 215-2055; or R. Alan Steele, Vice President Finance and Chief Financial Officer, Telephone: (403) 215-2692, Fax: (403) 215-2055

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