Twin Butte Energy Ltd TBTEF

Over $100 oil - more wells?

[Diesel44]

So as Bshort points out oil's around $109.  Was just doing a simple average of WTI since beginning of the year, which has been about $101.

TBE's presentation outlines year-end production of 13,900 bpd and
.18/share dividend based on a $90 WTI assumption.  At an average of $101/bbl year-to-date they've been making an average of $11/bbl above plan the first couple months of 2012.  By my simple math, if half of that goes to increased expenses, royalties, taxes that still leaves about $75k/day extra netback.  An average Frog Lake well costs $515k so every week WTI averages $101, I figure they can drill a bonus Frog Lake well.  That's 8 bonus wells since the beginning of the year (and more if WTI keeps going up).

An average of 45 bpd / Frog Lake well x 8 bonus wells to date = about 360 bpd bonus production.

Bshort - I think those looking for capital growth on top of dividend will be getting it; sets a good stage for future dividend growth too.