ALBERTA

Twin Butte Energy stock stabilizes after dramatic drop, heavy trading on Friday

02/04/2013 10:33 EST | Updated 04/06/2013 05:12 EDT
CALGARY - Twin Butte Energy Ltd. (TSX:TBE) began the week on more stable footing, after dropping 16 per cent Friday in the heaviest trading of any TSX-listed company.

The Calgary-based oil and gas producer's stock dropped 44 cents to close at $2.22 on Friday, with more than 15.6 million shares traded at the Toronto Stock Exchange.

The shares regained two cents to trade at $2.24 in the first half hour of trade on Monday.

The junior energy producer warned after markets closed on Thursday that operational problems in the first weeks of 2013 will probably have a significant impact on its cash flow.

Twin Butte announced that one of its best-performing properties has seen its production drop by 800 to 900 barrels per day since the end of 2012 _ roughly a quarter of the peak of 3,400 barrels per day.

It said it's working to restore its Primate property in Saskatchewan but expects the problem — combined with cold-related down time and low prices for heavy oil — will reduce first quarter cash flow to $30.5 million.

Twin Butte said it probably won't be able to make up the shortfall and will reduce 2013 capital spending by 23 per cent to $85 million to conserve cash. It said the current dividend rate will be maintained.

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