Twin Butte Energy Ltd TBTEF

RE: Leave it to Primate

[bshort92]

The problem is the loss of production at Primate was, per the press release,900 boe/d. TBE guided to 17,100 boe/d production down from December's 19,200 boe/d or a drop of 2100 boe/d. Clearly the problems were more widespread than just Primate. The other issue is TBE does not disclose if any of the lost production from the early January freeze can be recovered although the corporate presentation says they are now producing 17,800 boe/d. Despite differentials closing under $24 a barrel one would think the shares would be getting a boost. But with the dramatic cut to capex to save the balance sheet and preserve the dividend their is apparently no money left in the budget to increase production let alone make an accretive asset purchase with shares trading at such a depressed level. So I question the rationale that Jennings and other analysts are applying to their over $3 a share price targets.