Twin Butte Energy Ltd. (TBE.TO) provided an operations update and information on its oil and gas reserves as of December 31, 2012. Twin Butte anticipates releasing Q4 and year end 2012 audited financial and operating results after market close on March 21, 2013.
Operations Update: "On January 31, 2013, Twin Butte provided an operational update that noted it had encountered reservoir performance issues at its Primate property in western Saskatchewan. At that time, the company noted that the property's production had declined during the month of January from a peak of 3,400 bbls per day to 2,500 bbls per day due to increased water cuts and reduction of inflow on a number of producing wells. Since that time, the company has successfully stabilized the property's production at approximately 2,600 bbls per day. Twin Butte will continue to monitor and optimize production at Primate but believes that the property's sharp decline will not continue and that the property's point forward performance will be more analogous to other area properties. Based on analogy work conducted by both Twin Butte and McDaniel, it is believed that the property will continue to produce for a number of years and that the annual property production decline should be approximately 35%. Twin Butte's December 31, 2012 reserve analysis includes this assumption. As a result of positive technical revisions for Primate, the property's performance continues to exceed expectations of both our independent evaluators and internally.
"Current corporate production is in excess of 18,000 boe per day up from the reported 17,800 boe per day at the end of January. Year to date, the company has successfully drilled 20 gross (20 net) wells, including two horizontal wells at its Wildmere asset which was acquired in Q4 2012. Based on very encouraging early production data from the Wildmere wells, Twin Butte will be drilling another 2 to 4 horizontal wells on the property late in Q1 or early Q2.
Twin Butte is up 14 cents to $2.19 near midday. Close to 1.5 million shares have been traded.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
