Twin Butte Energy Ltd TBTEF

Heavy oil back in favor

[bshort92]

Bloomberg put out an article on heavy oil today. You can access it off Yahoo by going to the BTE thread page. The big takeaway is that with $107 WTI and differentials doubling heavy oil is back in play: Mentioned was SU, IMO, CNRL, CVE and BTE on the big player front with mention on small players PXX, PXL.V and RE. Intermediate TBE, mired in the penalty box, adrift with no clear vision was not mentioned. Why?

Mason Granger says TBE might be eyeing a NG slanted purchase, Eric Nuttall speculated a light oil acquisition could be brewing. Is an accretive acquisition towards say a purchase on par with 5800 boe/d EME, 3500 boe/d Waseca or 1900 boe/d Avalon on the horizon? Is a tuck in purchase like 400 boe/d Wildmere or 500 boe/d Frog Lake South in the picture. If you look at the TBE presentation the slant is away from $550 K shallow verticals that crank out say 40 boe/d towards $950 K 80-100 boe/d horizontals on smaller tuck in properties. Just where or when another accetive acqisition beckons is anyone's guess. Balance sheet is at $196 million of debt on 16,000 boe/d. Cash flow has cratered, capex severely constrained. Investors are reticent, analysts cautious, management protective. Appears the company committed a 10 min. misconduct in the penaly box (Primate writedown) got another major penalty and seems destined to stay out of any discussions amid bullish upside in the heavy oil sector. Could this all be setting up for an outright sale or merger? Do they continue to avoid contact with the investment conference community? Does TBE remain afraid of its destiny or are they happy just being a $1.80 10% yielding dividend concern? Can another downside announcement be lurking?