Twin Butte Energy Ltd TBTEF

RE:RE:Looks Like A Guidance Issue

[bshort92]

Post Waseca purchase TBE was producing 19,200 boe/d. Add in the 7000 boe/d medium oil Black Shire purchase TBE should be producing 26,200 if they could just drill to offset their base decline. Fast forward today they are producing 4600 boe/d less or 21,600 boe/d. That type production erosion is pronounced. Hence the frequent share price sell offs...three monster types last year and a half, a degradation of the booked reserves, lowering of the credit facility and another layer of skepticism. Great acquisitions have been offset by huge production shortfalls and a slow transition into the greater netback horizontal arena. Production hedges have impeded maximizing cash flow in this robust price environment and narrowing of differentials. Now they can't drill or acquire to offset this predicament. Hence they are probably not going to be able to fix this mess rather they will have to sell at a steep discount. Too bad a good story that went bad. Had great intentions but weak technical application rendered this a bad investment.