Twin Butte Energy Ltd.
TSX : TBE

July 17, 2007 11:06 ET

Twin Butte Energy Ltd. Announces Closing of Bought Deal Private Placement

CALGARY, ALBERTA--(Marketwire - July 17, 2007) -

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Twin Butte Energy Ltd. (TSX:TBE) ("Twin Butte" or the "Company") announced today that it has closed its private placement of 5,550,000 common shares at a price of $3.00 per share. The size of the offering was reduced from the initially announced offering of 6,000,000 common shares in order to comply with the rules of the Toronto Stock Exchange. Pursuant to such rules, the number of common shares to be issued on a private placement basis cannot exceed 25% of the number of common shares outstanding prior to the date of closing without requisite shareholder approval. The private placement was underwritten by a syndicate of underwriters led by Canaccord Capital Corporation and including Blackmont Capital Inc., Peters & Co. Limited, Tristone Capital Inc., and National Bank Financial Inc.

The aggregate proceeds of approximately $16.65 million from the private placement will be used by Twin Butte to repay debt incurred from its recent acquisition of producing assets, undeveloped land, and infrastructure in the Leaman/Thunder area of West Central Alberta.

This news release shall not constitute an offer to sell or the solicitation of any offer to buy the securities in any jurisdiction.

The common shares offered will not be and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States.

Certain information regarding the Company 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 the Company 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, including the risk that either or both of the acquisitions may not close as planned, and may be based on assumptions that could cause actual results to differ materially from those anticipated or implied in the forward-looking statements. The Company 's forward-looking statements are expressly qualified in their entirety by this cautionary statement.

The TSX does not accept responsibility for the adequacy or accuracy of this release.

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