Twin Butte Energy Ltd TBTEF

Sell off

[bshort92]

TBE's shares have been ratcheted down on low volume as oil prices retreated this week. Oil still trading at $91. Still holding to the belief that Sprott, once the Waseca deal closes, will not sell their 9% position in TBE instead will be supportive of management's focus on sustaining the dividend, exerting balance sheet discipline, reducing the debt and growing at a 3% to 5% rate. The opportunities to grow will come from M&A, I believe, by targeting smaller heavy oil Lloydminster corridor located players motivated to sell and jump on board in an intermediate structured to reward shareholders. The $32 k per flowing barrel price has been clearly established by TBE's aggressive 2012 growth story. It is not like other heavy oil players are expanding their M&A efforts. Would not be surprised if more deals are going to be made near term. There is no shortage of motivated sellers in the corridor. Adding production, reserves and inventory will not only increase value in the firm but lead to greater operational synergies thus improving netbacks and with it the eventual payout of a larger monthly dividend. Stay tuned.