Twin Butte Energy Ltd TBTEF

Jr. Heavy oil operators

[bshort92]

It is no secret that the smaller heavy oil operator is not in a very favorable light these days. While we see the large players Husky, CNRL, BTE doing well it is the smaller junior heavy oil Lloydminster players sprawled across the Sask/Alberta line having to sell production into a wide differential. TBE has more or less re written the textbook on how to navigate into a profits challenged environment with their dividend paying growth and income model. Two neighbor publically traded firms: RE and PXL.V both are trending downwards share price rise despite one having no debt and both guiding production to app. 2800 boe/d by year end. The trend is clear: if they are not getting any share accumalation in this $98 WTI market imagine what the smaller players are encountering. This is confounding considering land prices once settled in at $300 an acre are now ratcheting upward some for as much as a $1000 a acre.So TBE's strategy to grow through M&A not through the bit but via $32 K per flowing boe prices. I can't see this strategy going away. At this pace TBE is bound to get to say 27,000 boe/d which is half BTE's 54,000 boe/d. BTE trades at over $100 per flowing boe, TBE at around $40. If Sprott is on board with this strategy maybe others will follow. Stay tuned.