Twin Butte Energy Ltd TBTEF

Next month

[bshort92]

So lets fast forward 30 days when the TBE purchase of Avalon is scheduled to be finalized. At that point 220 million shares out, $165 million of debt say the shares stay in the toilet at today's $2.30. 220 million times equals $506 million with debt TBE's enterprise value is $670 million. So why is TBE based on the 2010 NB/Nexen purchase metrics undervalued by over $300 million or say minimum  $1.25 share? Who knows in this stupid market. Yes only 12,100 of TBE's 15,500 BOE/d prodcution is heavy oil but that should not result in the asset being so undervalued. The assets are for wells 465 to 700 meters deep. Recall the Northern Blizzard July 2010 press release that extolled 600-900 meter deep inventory. Therefore the argument can be made that TBE's assets might be more shallow and maybe potentially more profitable. You wonder why a suitor is not lurkng for TBE seeing it trading at this distressed price and most assuredly vulnerable to an unsolicited say $4 a share take out. At this stage I'm not sure there would be a lot of dissent against that priced offer.