Twin Butte Energy Ltd TBTEF

A golden opportunity

[bshort92]

The PWT announcement of Rick George formerly of Suncor coming on as board chair is great news in the patch.  PWT CEO Murray Nunns expounded on the news saying that the firm was committed to growing their considerable asset base on the light oil side. PWT also possesses some heavy oil assets. Yes the heavy oil sector might be out of favor considering the differential issues but at the same time WTI is trading over $95 a barrel. You see a WCP getting great coverage producing 17,500 boe/d of primarily light oil and holding over $350 million of debt. Light oil gets great netbacks but consider the TBE model getting close to $30 netbacks, holding around $200 million of debt and producing in excess of 18,000 boe/d plus pays out a fat 8% + dividend. PWT lost close to $100 million in Q1. Their dividend yields close to 12%. Something has to give hence George's arrival. Monetizing some heavy oil assets might be in the cards. Who is in a position to accomadate them? Willing to sell for $30 k per flowing boe? M/A events may be getting ready to get quite interesting again.