CALGARY, Oct. 12, 2016 /PRNewswire/ - On September 1, 2016, the Alberta Court of Queen's Bench (the "Court") granted an order appointing FTI Consulting Canada Inc. as Receiver and Manager (the "Receiver") of Twin Butte Energy Ltd. ("Twin Butte"), an intermediate oil and natural gas producer in Canada.
In addition, on October 11, 2016, the Court approved a process permitting the Receiver to proceed with a sale and investment solicitation process for Twin Butte, and the appointment of Peters & Co. Limited and CIBC World Markets Inc. to work collaboratively as selling agents (collectively the "Selling Agents"). The Receiver and Selling Agents are currently seeking offers to purchase, restructure or recapitalize Twin Butte. Non-binding Phase I bids or restructuring proposals will be due at 12:00pm MST on November 17, 2016 and binding Phase II bids or restructuring proposals will be due at 12:00pm MST on December 15, 2016.
The oil and natural gas assets of Twin Butte had Q2 2016 average production of 12,728 BOE/d (89% oil and liquids), with production of ~11,000 BOE/d (90% oil and liquids) for the month of September 2016, and includes 55.4 MMBOE of proved plus probable reserves (McDaniel and Associates Consultants Ltd. reserves report effective December 31, 2015), primarily in the Lloydminster and Provost areas of Alberta and Saskatchewan.
Over the course of the past 18 months, management of Twin Butte has transitioned Twin Butte's asset base to lower cost, more predictable, medium and heavy oil reservoirs. The adoption of new technology to the company's oil rich Provost and Lloydminster areas has improved development economics while increasing drilling inventory significantly. Average per well costs have decreased while average per well productivity has increased.
Twin Butte retains significant cash flow torque to increasing oil prices.
Parties interested in participating in this process are invited to contact the Receiver or Selling Agents by phone or email; or proceed to the Receiver's website for further information and detail on the process: http://cfcanada.fticonsulting.com/TwinButte/.
SOURCE Twin Butte Energy Ltd.