Twin Butte Energy Ltd. has entered into an arrangement agreement (Arrangement Agreement) with Black Shire Energy Inc. (Black Shire) providing for the acquisition (the "Black Shire Acquisition") by Twin Butte of all of the issued and outstanding class "A" common shares ("Black Shire Shares") of Black Shire for total consideration of approximately $358.0 million, including the assumption of approximately $107.6 million of net debt.

Black Shire is a private company with a focused asset base in the greater Provost area, producing approximately 7,000 boe per day (93 percent medium gravity oil). The greater Provost area is directly adjacent to Twin Butte's core Lloydminster heavy oil area. Black Shire is an attractive acquisition for Twin Butte in that it has demonstrated its ability to generate substantial free cash flow while developing its large and low risk horizontal drilling inventory, providing growth in production and reserves.

Twin Butte believes that the Black Shire Acquisition strategically supports Twin Butte's dividend model and enhances the Company's long term dividend sustainability. Black Shire was formed in 2010 by President and CEO Suzanne West with equity financing from Lime Rock Partners, a global energy-focused private equity firm.

Tags: Twin Butte Energy Ltd.