Twin Butte Energy Ltd TBTEF

RE: RE: RE: RE: RE: BTE getting BBQ'd - CIBC Downg

[bshort92]

Don't forget that of BTE's 53,000 boe/d of production per their presentation 42% or 20,900 boe's/d are derived from their Lloydminster heavy oil assets. If BTE has a market cap of $5 billion based on 120 million shares out on a $42 share price the market cap of BTE's Lloydminster heavy assets with 454 K acres is around $2.1 billion( that's 42% of $5 billion). For TBE 12,100 boe/d of their 15,500 boe/d production 78% ot the total is tied to their Lloydminster heavy oil acreage that also includes 162 K acres. Using those metrics TBE should get 58% of BTE's valuation for their Lloydminster turf or close to $1.2 billion in the marketplace. Thats $6 a share just for TBE's Lloydminster assets  in the apples for apples valuation world. OK BTE has 292 K more acres but TBE still trades at a huge discount based on BTE's valuation. But CIBC still chooses to downgrade TBE with BTE despite trading at less than $35 k per flowing boe.