/NOT FOR DISSEMINATION IN THE US OR THROUGH US WIRE SERVICES/
CALGARY, Jan. 11 /CNW/ - (TSX - TBE) - Twin Butte Energy Ltd. ("Twin Butte" or the "Company") today announced that it has entered into an agreement with a syndicate of underwriters co-led by Peters & Co. Limited and Research Capital Corporation and including National Bank Financial Inc., Canaccord Financial Ltd., Cormark Securities Inc., Acumen Capital Finance Partners Limited and GMP Securities LP (collectively, the "Underwriters"), pursuant to which the Underwriters have agreed to purchase for resale to the public, on a bought deal basis, 16,000,000 common shares (the "Common Shares") of the Company at a price of $1.25 per Common Share for aggregate gross proceeds of $20 million. Twin Butte has also granted the Underwriters an over-allotment option to purchase, on the same terms and conditions, up to an additional 2,400,000 Common Shares. The option is exercisable, in whole or in part, at any time until 30 days after the closing date of the offering. The maximum gross proceeds raised under the offering will be $23 million should the over-allotment be exercised in full. The offering is subject to certain conditions including receipt of all regulatory approvals, including the Toronto Stock Exchange. The Common Shares will be offered in all provinces of Canada, except Quebec, by way of a short form prospectus. Closing is expected to occur on or about February 2, 2010.
Net proceeds of the offering will initially be used to reduce Twin Butte's existing bank indebtedness and provide further flexibility to expand Twin Butte's on-going capital investment program including both drilling and potential acquisitions.
The securities to be offered in the financing have not been and will not be registered under the United States Securities Act of 1933 or the securities laws of any state of the United States and may not be offered or sold in the United States except in transactions exempt from such registration.
Twin Butte is a value oriented junior 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 believes it is well positioned to live within cash flow while executing a significant capital program generating double digit organic growth. Twin Butte is committed to continuing to enhance its asset quality while focusing on per share growth.
Forward-Looking Statements - Certain information regarding Twin Butte Energy Ltd. set forth in this document, including the closing date and the use of proceeds of the offering and management's assessment of Twin Butte Energy Ltd.'s future plans and operations, contains 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 Energy Ltd.'s control, including the receipt of regulatory approvals, the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources Twin Butte Energy Ltd.'s actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that Twin Butte Energy Ltd. will derive therefrom.
SOURCE Twin Butte Energy Ltd.
For further information: For further information: Mr. Jim Saunders, President & CEO, Mr. Alan Steele, Vice President Finance & CFO, Twin Butte Energy Ltd., 410, 396 -11th Avenue S.W., Calgary, Alberta, T2R 0C5, Phone: (403) 215-2045, Fax: (403) 215-2055