Twin Butte Energy Ltd TBTEF

RE: RE: RE: Valuations M&A

[bshort92]

Consider a 48 hour old announcement whereby WCP just disposed of some non core assets specifically 680 boe/d of production from the Alberta Swan Hills, SE Saskatchewan and their Alberta heavy oil assets for $56.4 million. It looks like a smart deal as with a current debt load of $360 million WCP could pay down this number all the while also announcing an increase to their available credit facility. The market loves the news as WCP (producing 16,500 boe/d/market cap over $1 billion) is trading upward 7.22% (.54 cents) today at $8.02 a share. When you can sell assets for $83 k per flowing boe including some heavy oil assets it makes one wonder why a TBE trading at under $40 K per flowing boe and smart purchasers of three heavy oil properties this year all for around $32 k per flowing boe are not getting any action today despite being great managers of their capital including a projected $210 million debt load post closing of privately held Waseca set to finalize late next week or so.All points considered I would say that TBE needs to make another $32 k per flowing boe/d purchase. If they choose to monetize the asset they can always turn around and sell it to the WCP asset purchasers for $83 k a flowing boe. Stay tuned.