Twin Butte Energy Ltd TBTEF

Big $ poised to pounce

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Yesterdays wire release that indicated Hong Kong based United Energy was in talks to purchase a Canadian based energy concern for $1 billion was interesting. This on the heels of CNOOC buying Nexen and Sinopec buying half of TLM's North Sea assets This outfit, United Energy, controlled by a Chinese billionaire (not the same billionaire who controls Husky but another one) speaks to the divergence of the large amount of private capital on the sidelines poised to pounce on the undervalued Canadian E&P sector. EDE.V's presentation speaks to their deep pocketed backers being a U.K. based $100 billion firm totally committed to EDE.V and their current thrust drilling 100 boe/d wells next to TBE at Primate.Consider how Nexen's heavy oil assets were taken out two years ago by privately held Northern Blizzard controlled by two funds with over $30 billion under their umbrellas and the trend becomes clearer. One of those firms, NGP, took close to a 12% equity position in CR last year. It is a reality that assets with compelling upside are in the scope of deep pocketed players. Magnum Hunter did not flinch to take out BTE's North Dakota Williston Basin assets this spring for $311 million. There are assets to be had.  Petronas had to sweeten their deal to buy Progress yesterday. Compettion is heating up to purchase valuable upside firms. Money does all the talking. I'm convinced TBE is on someones radar. Either to buy or to take a significant equity position. The assets presented once the Avalon purchase closes is going to offer an investor real opportunity. Stay tuned.