Twin Butte Energy Ltd TBTEF

Occidental purchase

[bshort92]

US based energy concern Occidental Petroleum just paid $1.4 billion for 180,000 acres and 5500 BOE/d of production in North Dakota's Bakken formation. Makes TBE's $19.5 million purchase of 500 BOE/d at Frog Lake a few weeks back look like a great deal which is contrary to what the penny stock traders in the issue think. Obviously the Bakken offers significant upside and the land is the real catalyst to the deal. But the persistent selling of TBE's shares after a rally is about ready to end. Commodity prices for NG are not staying at their present level much longer. It will be good to stay focused on liquids for 2011 but don't be surprised if the NG complex doesn't snap back in the next four or five months. TBE should see higher returns for their NG properties going forward if they don't get purchased before that occurs.