Twin Butte Energy Ltd TBTEF

RE:RE:RE:my feeling...

[1nd3xme]

CARLca wrote: There's lots at play. Oil co's don't like new Alberta gov with unstable and possible higher royalties, Natioal bank has second biggest oil loan losses of all Canadian banks right now. Canadian crude is getting douched by the market @ $12 under  US crude. Canadian dollar is low too, Canadian oil companies are getting screwed all round. Trying to catch up on crude sales to the US after pipeline shut down for almost 2 weeks. Markets slamming any oil company with any debt. The tanks must be full in Alberta waiting for sales. This is probably the lowest prices for these companies we will see in years unless there is some other setback in the price of Crude. 

The new royalties only apply to profits. I could be wrong, but I take this to mean that the royalty would only be paid on money remaining at the end of each year...or rather, it'd be a return during the fiscal year end. Essentially, if TBE has a gross income of $200million/year, and after paying off debt, dividends(if/when they come back), funding exploratory endeavours and new well setups, employee wages...once all that's paid, if they had $500,000 left over, the higher royalties would be paid ONLY on $500,000. This is only speculation, for all I know, they might just say "How much money do you need to make to break even to produce 1 bbl? $40?, ok, well Oil is at $50/bbl so you owe increased royalties on $10/bbl