Twin Butte finds new pools
Twin Butte reported it's third quarter results recently and it showed solid results.Production was at 20,981 barrels per day in comparison to 16,263 in the same quarter last year.This is about a 30% increase and they are expecting moderate growth for the rest of the year.They do however expect strong growth in 2015.This aside revenues were up 25% above Q3 2013 and 58% above the 9 months of 2013.Funds flow was $.44 per share for 9 months or 10% above the 9 months for 2013;this puts Twin Butte on track to hit $.60 for 2014. At the present price of about $1.25 this makes the price /earnings ratio of about 2 times earnings and quite a good bargain.
New Pools
In my last blog, on this site, I mentioned that it appeared as if Twin Butte had found new pools of undiscovered oil in the newly acquired Blackshire properties.Twin Butte was not very specific about it in their last quarter's report.Twin Butte says in this report that they drilled new pools and pool extensions and infill wells in the Provost area.It also says that it brought on stream the first of the Provost Sparky multi-frac wells at rates above competitors production rates.Their primary target area now is the Dina-Cummings area of the Provost property.At present the production is only at 70 boe/day here but it will certainly grow in 2015.Twin Butte(TBE) has also had successful drilling of it's heavy oil
development in Wildmere,Alberta.They have 8 more successful wells here and similar developments in Lloydminster, Saskatchewan (another heavy oil resource).
Capital expenditures
Twin Butte reports that it completed an organic capital expenditure program of $44 million;this includes 39 wells at a 97% success rate.This they state is 386% above the size of the expenditure in Q3 2013. The majority of it (70%) has been spent on horizontal drilling in the Provost, Alberta area which is part of the newly acquired Blackshire property.They also state that the main focus of their 2015 drilling will be in the promising Dina-Cummings area.Twin Butte says that their netback on light oil now is $52 per barrel.
2015 promises to be better
Twin Butte only had production of 20,981 barrels per day in this quarter and expects moderate increases in the next quarter. But there is no doubt now that they have found new pools on the Provost area.Both new pools and pool extensions (resources bigger than originally reported) have been found.Also a new resource has been found in the Wildmere and Lloydminster area although this is heavy oil.Production at their promising Dina-Cummings area is low now but it looks like a potential 4000 to 5000 barrel per day resource. If so then funds flow per share will rise significantly by 2015;it is now on track to hit $.60 per share for 2014 and so might come in at $.80 or $.90 per share by 2015.As it is considered that the new revenues will almost all go to the bottom line as costs are already recovered.At production of 22,500 to 23,250 barrels per day this should produce funds flow of $.85 to $.90 per share and this blog sees a price of $1.75 to $1.80 per share or else a very low price /earnings multiple.With these new pools coming onstream this would make Twin Butte a real beauty.
New Pools
In my last blog, on this site, I mentioned that it appeared as if Twin Butte had found new pools of undiscovered oil in the newly acquired Blackshire properties.Twin Butte was not very specific about it in their last quarter's report.Twin Butte says in this report that they drilled new pools and pool extensions and infill wells in the Provost area.It also says that it brought on stream the first of the Provost Sparky multi-frac wells at rates above competitors production rates.Their primary target area now is the Dina-Cummings area of the Provost property.At present the production is only at 70 boe/day here but it will certainly grow in 2015.Twin Butte(TBE) has also had successful drilling of it's heavy oil
development in Wildmere,Alberta.They have 8 more successful wells here and similar developments in Lloydminster, Saskatchewan (another heavy oil resource).
Capital expenditures
Twin Butte reports that it completed an organic capital expenditure program of $44 million;this includes 39 wells at a 97% success rate.This they state is 386% above the size of the expenditure in Q3 2013. The majority of it (70%) has been spent on horizontal drilling in the Provost, Alberta area which is part of the newly acquired Blackshire property.They also state that the main focus of their 2015 drilling will be in the promising Dina-Cummings area.Twin Butte says that their netback on light oil now is $52 per barrel.
2015 promises to be better
Twin Butte only had production of 20,981 barrels per day in this quarter and expects moderate increases in the next quarter. But there is no doubt now that they have found new pools on the Provost area.Both new pools and pool extensions (resources bigger than originally reported) have been found.Also a new resource has been found in the Wildmere and Lloydminster area although this is heavy oil.Production at their promising Dina-Cummings area is low now but it looks like a potential 4000 to 5000 barrel per day resource. If so then funds flow per share will rise significantly by 2015;it is now on track to hit $.60 per share for 2014 and so might come in at $.80 or $.90 per share by 2015.As it is considered that the new revenues will almost all go to the bottom line as costs are already recovered.At production of 22,500 to 23,250 barrels per day this should produce funds flow of $.85 to $.90 per share and this blog sees a price of $1.75 to $1.80 per share or else a very low price /earnings multiple.With these new pools coming onstream this would make Twin Butte a real beauty.
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