Twin Butte Energy Ltd TBTEF

RE: Valuations M&A

[bshort92]

Just took a look at the LRE presentation set to commence trading soon (perhaps tomorrow) the result of the WFE/GO merger.The presentation touches comparitively on the eight say 20K boe/d give or take producers and there NG to liquids weightings. Obviously of the eight mentioned CLT was purchased by XOM last week. The remaining seven: CR, TBE, LEG, LRE, WCP, BIR and PMT all represent either NG weighted or light oil slanted production concerns. TBE is the only one with neither instead concentrated on a decided heavy oil focus. LRE has close to 25 K boe/d 50/50 weighted production including there only heavy oil property producing app. 1500 boe/d at Edam. CR produces app. 6000 boe/d heavy oil in the Lloydminster corridor part of their 2011 $620 million purchase of Caltex plus 9,000 boe/d med. oil at Princess of their 29 K boe/d production total. PMT is making some in roads in heavy oil in eastern Alberta but remains an NG slanted concern. BIR is primarily NG focused. WCP and LEG are making their marks in light oil further south of Lloydminster in various Alberta and Saskatchewan located plays while LRE has plays there (courtesy of the WFE properties) as well as a massive Montney NG oriented land position courtesy of the GO side of the merger. All seven are interesting stories. I see these seven all in a state of flux. None of the seven will be operating, in my view, in their present form 12 months from now. I see lots of M&A slanted towards these players. Some will be sold, some will be buyers and some will be merged. Stay tuned.