This article exists as part of the online archive for HuffPost Canada, which closed in 2021.

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

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.

Suggest a correction
This article exists as part of the online archive for HuffPost Canada. Certain site features have been disabled. If you have questions or concerns, please check our FAQ or contact support@huffpost.com.