Twin Butte Energy Ltd.

June 01, 2006 16:15 ET

Twin Butte Energy Ltd. and Drilcorp Energy Ltd. Announce Completion of Amalgamation

CALGARY, ALBERTA--(CCNMatthews - June 1, 2006) - Twin Butte Energy Ltd. ("Twin Butte") and Drilcorp Energy Ltd. (TSX VENTURE:DCL) are pleased to announce that they have completed Twin Butte's previously announced acquisition of Drilcorp Energy Ltd. ("Drilcorp"). Pursuant to the transaction, Drilcorp and 1195936 Alberta Ltd., a wholly owned subsidiary of Twin Butte, have amalgamated with the ongoing company continuing to carry on business as a wholly owned subsidiary of Twin Butte. Each former shareholder of Drilcorp shall receive either (i) one half of a common share of Twin Butte; or (ii) $0.60 cash or (iii) a combination of Twin Butte common shares and cash for each common share held in Drilcorp for a total of 19,641,493 Twin Butte common shares and $7.85 million in cash.

Twin Butte is also scheduled to close the previously announced acquisition of Kerogen Petroleum Ltd. ("Kerogen") on June 2, 2006 subject to Kerogen shareholder approval at a meeting of Kerogen shareholders to be held on June 1, 2006. Kerogen is a private junior oil and gas company engaged in the exploration, development and production of oil and natural gas in the Western Canadian Sedimentary Basin. The total value of the Kerogen acquisition is approximately $18 million, including assumption of net debt of approximately $1.35 million and proceeds of $509,870 on the assumed exercise of all outstanding options and warrants.

Twin Butte has received approval from the TSX Venture Exchange Inc. (the "TSXV") for the substitutional listing of its common shares on the TSXV in conjunction with the completion of the amalgamation. The common shares of Twin Butte will commence trading on the TSXV no earlier than the open of markets on June 6, 2006 under the symbol "TBE". The Drilcorp common shares will remain halted until delisted.

Twin Butte is an Alberta based publicly traded junior oil and gas company, engaged in the exploration, development and production of oil and natural gas in the Western Canadian Sedimentary Basin.

Certain information regarding Twin Butte contained herein may constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other similar statements that are not statements of fact. Although Twin Butte believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. These statements are subject to certain risks and uncertainties and may be based on assumptions that could cause actual results to differ materially from those anticipated or implied in the forward-looking statements. Twin Butte's forward-looking statements are expressly qualified in their entirety by this cautionary statement.

The TSX Venture Exchange has neither approved nor disapproved the contents in this press release.

Contact Information

  • Twin Butte Energy Ltd.
    Ron Cawston
    Chief Executive Officer
    (403) 215-2040
    (403) 215-2055 (FAX)