Twin Butte Energy announced that 13,646,600 common shares of Can-Able Energy Ltd., representing approximately 96% of the issued and outstanding Can-Able Shares, have been tendered pursuant to Twin Butte's offer to purchase all of the issued and outstanding
Can-Able Shares. Twin Butte has directed the depositary pursuant to the Offer to take up and pay for the Can-Able Shares deposited under the Offer and not withdrawn as at 5:00 p.m. (Calgary time) on July 9, 2009.
As the Offer was accepted by holders of greater than 90% of the outstanding Can-Able Shares, Twin Butte will take steps to acquire the
remainder of the Can-Able Shares pursuant to the compulsory acquisition provisions contained in the Business Corporations Act (Alberta).
The consideration offered is 0.58 of a Twin Butte common share for each outstanding Can-Able Share, for total consideration of 8,229,968 Twin Butte common shares.
- Current production of approximately 250 boe/d of high heat content natural gas and associated natural gas liquids, with a reserve life index in excess of 9 years on a proved producing basis;
- Proved reserves totaling 1,483 mboe and proved plus probable reserves totalling 2,222 mboe as per an independent reserve evaluation dated December 31, 2008;
- Excellent acquisition metrics of $9.50 per boe, including forward capital on a proved plus probable basis;
- A significant drilling inventory with 16 identified deep basin style, drill ready locations including horizontal multistage fracture stimulation candidates; and
- Low operating costs of approximately $10.00 per boe.
The acquisition further strengthens and high grades Twin Butte's extensive drilling inventory while establishing a new core area with a repeatable play type with significant running room.