Twin Butte Energy Ltd TBTEF

Valuations M&A

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Looking back on TBE's $32 K per flowing boe purchases of EME, Avalon and in two weeks or so Waseca seems like a bargain compared to the $100 k per flowing boe that XOM just paid for CLT. Seems like the large land position, NG asset rush started by Shell in 2008 for Duvernay, later Petronas taking out Progress and now this deal it seems price depresed natural gas outfits with huge shale land positions in the Montney, Horn River etc are getting huge multiples in M&A deals. In heavy oil BTE just paid big bucks to solidify their land holdings at Cold Lake. Two years back privately held Northern Blizzard paid $65 k per flowing boe for Nexen's 15,000 boe/d heavy oil concerns, last year CR paid close to $60 K per flowing boe for 60% heavy oil player Caltex and Gear paid $55 K or so per flowing boe for Daylight's Alberta heavy oil properties. So ask yourself why TBE can't even break through $3 a share or get even $40 per flowing boe valuation on their projected year end 19,500 boe/d close to 88% heavy oil slanted firm. Last I checked the Daily Oil Patch Bulletin TBE is in full prodcution mode this week pullling licences to drill at Frog Lake, Silverdale, Primate and on the Avalon and Waseca lands. Just to clarify TBE's 19,500 boe/d trading at $50 k per flowing boe would be market cap of $975 million or 250 million shares trading at $3.90 a share. Therefore TBE is close to a dollar a share undervalued. Stay tuned.