Twin Butte Energy Ltd TBTEF

RE:RE:OPEC

[Cimerone]

ocean112 wrote:

Ingiboy wrote: Well, where do we go from here?  OPEC as predicted not reducing production.  They seem hell bent on stomping the life out of North American production amongst other non OPEC producers.
I am not sure where that leaves Twin Butte?  The cards are stacked against them for many reasons.  Do the shareholders merely ride this down or is there a point where there is no choice but to merge with a bigger company?
 

___ I have been the biggest supporter of TBE for years...but even I have to admit - things are not looking good and there is a potential scenario where this goes the way of Argent and Spyglass. TBE has always been prudent to manage their balance sheet, but if prices remain low - their credit lines will be cut. I expect this is why the market is selling off TBE. If their credit line is cut substantially - TBE will be forced to sell assets or raise capital (which will not happen in this market). The only problem is - TBE doesn't have a large inventory of assets to sell at attractive prices. If there is a call on debt - no matter how good management is - and there is no way to make up the delta - TBE will be in real, serious, trouble. This is a 50/50 coin toss for me - I've written off my investment and will sell for the tax loss - but for those who feel this is tax loss selling - be careful - there is way more going on here that meets the eye - and I do not expect a rebound in January... If credit lines get cut - this goes into the sub 10 cent range...if credit doesn't get cut - this recovers to say 30 cents. Either way - I have the same odds betting on red in Vegas....

It is truly sad to be witnessing this tragedy.