Joint News Release - Twin Butte Energy Ltd. Announces Closing of Strategic Combination with E4 Energy Inc.

    CALGARY, Feb. 8 /CNW/ - Twin Butte Energy Ltd. ("Twin Butte" or the
"Company") (TBE-TSX) and E4 Energy Inc. ("E4") (EFE-TSXV) are pleased to
announce that the previously announced Plan of Arrangement (the "Arrangement")
involving Twin Butte, E4 and the shareholders of E4 has been completed. The
Arrangement was approved at the special meeting of shareholders of E4 and by
the Court of Queen's Bench of Alberta on February 7, 2008. Holders of common
shares of E4 voted 99.9% in favour of the Arrangement resolution. Twin Butte
issued 15,663,027 common shares to the former shareholders of E4 on completion
of the Arrangement. As a result of the Arrangement, Twin Butte also assumed
bank debt of approximately $19.2 million, including E4's transaction costs.
    Twin Butte is also pleased to announce that Mr. Paul Starnino, the former
President and Chief Executive Officer of E4, and Mr. Jim Brown, a former
director of E4, joined the board of directors of Twin Butte upon completion of
the Arrangement. In addition, Twin Butte is pleased to announce that Glenn
Downey, the former Senior Vice President of E4, has joined Twin Butte as Vice
President, Exploration.
    The Arrangement complements Twin Butte's acquire, exploit and explore
growth strategy and provides additional critical mass with regards to
production, land and cash flow further establishing Twin Butte as a
growth-oriented junior. In addition to a solid production base consisting of
45 percent oil, the acquisition brings approximately 86,000 net undeveloped
acres of land, and a new core area in Ft. St. John, British Columbia. The B.C.
assets contribute over 50 percent of the acquired E4 production which will be
unaffected by recent royalty changes proposed in Alberta.
    The geographical fit of the S.E. Alberta assets is enhanced by large oil
in place reservoirs with 3D seismic coverage setting up future drilling
opportunities. Identified well optimization and facility construction is
underway which should provide short term production growth and additional
drilling opportunities. The E4 land base in Alberta and B.C. brings an
inventory of over 50 drilling opportunities and a recent new discovery brings
significant growth upside.
    It is anticipated that E4's common shares will be delisted from the TSX
Venture Exchange at the close of business on Monday, February 11, 2008. In
conjunction with the closing of the Arrangement, the directors and officers of
E4 resigned and certain officers of Twin Butte were appointed as directors of
E4. Following the Arrangement, E4 was amalgamated with Twin Butte.

    Reader Advisory

    Certain information regarding Twin Butte set forth in this joint news
release including management's assessment of the Company's future plans and
operations, the effect of the Arrangement 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 therefrom. 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 (, or Twin Butte's website
( 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.

    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.

    %SEDAR: 00001562E

For further information:

For further information: Twin Butte Energy Ltd., Suite 415, 311 - 6th
Avenue S.W., Calgary, Alberta, T2P 3H2, Ron Cawston, President and Chief
Executive Officer, Tel: (403) 215-2040; R. Alan Steele, Vice President,
Finance and Chief Financial Officer, Tel: (403) 215-2692; Website:

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