Twin Butte Energy Confirms Dividend for June 17, 2013 and Announces Stock Dividend Program and Election of Directors

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CALGARY, May 15, 2013 /CNW/ - Twin Butte Energy Ltd. (TSX:TBE.TO - News) ("Twin Butte") confirms that its cash dividend in respect of May 2013 production will be $0.016 per share.  The eligible dividend will be paid on June 17, 2013 to shareholders of record on May 31, 2013.  The ex-dividend date is May 29, 2013.  The Board of Directors of Twin Butte declared the dividend payable in either cash or common shares at the election of the shareholder.  This dividend has been designated as an "eligible dividend" for Canadian income tax purposes.

Stock Dividend Program

Shareholders approved an amendment to Twin Butte's articles to implement a Stock Dividend Program ("SDP") at the annual and special meeting of shareholders of Twin Butte held on May 15, 2013. The SDP delivers increased optionality for eligible Twin Butte shareholders by providing the opportunity to receive dividends in the form of common shares of Twin Butte ("Common Shares") instead of receiving a cash dividend on the dividend payment date. While it is similar to Twin Butte's existing Dividend Reinvestment Plan ("DRIP"), the SDP is expected to have certain favorable income tax attributes and is available to both eligible Canadian and non-Canadian shareholders. The current DRIP program will also remain in place as another option for eligible Twin Butte shareholders.

Participation in the SDP is optional and will not affect shareholders' dividends unless they elect to participate in the SDP. Eligible shareholders may elect to participate in the SDP commencing with the monthly cash dividend payable on June 17, 2013, to shareholders of record on May 31, 2013 (the "June 2013 Dividend").

The benefits of the SDP are as follows:

  • Dividends will be paid to electing shareholders in the form of Common Shares at 95% of the volume weighted average trading price of the Common Shares on the Toronto Stock Exchange for the five trading days preceding the dividend payment date;
  • All fees associated with the SDP will be paid by Twin Butte; and
  • Shareholders can elect to receive stock dividends on all or some of their Common Shares.

Further details regarding the benefits and potential tax consequences of the SDP are outlined in Twin Butte's Information Circular - Proxy Statement dated March 28, 2013 (the "Information Circular") which is available on SEDAR at www.sedar.com and on Twin Butte's website at www.twinbutteenergy.com.

To participate in the SDP, registered shareholders must deliver a properly completed confirmation notice to Valiant Trust Company ("Valiant") (in its capacity as plan agent under the SDP) not later than 4:30 p.m. (Calgary time) on the fourth business day immediately preceding a dividend record date in order to receive stock dividends. Registered shareholders who wish to receive the June 2013 Dividend as a stock dividend pursuant to the SDP must deliver a completed and signed confirmation notice to Valiant no later than 4:30 p.m. (Calgary time) on Monday, May 27, 2013.

Beneficial shareholders (i.e. owners of Common Shares that are held through a nominee) who wish to participate in the SDP should contact the broker, investment dealer, financial institution or other nominee who holds their Common Shares to inquire about the applicable enrolment deadline and to request enrollment in the SDP.

The current DRIP will not be terminated as a result of the approval of the SDP. Shareholders will still be able to participate in Twin Butte's DRIP, should they wish to do so. In the event that a shareholder is currently enrolled in the DRIP, they do not need to take any further action to remain enrolled in the DRIP.  Shareholders who wish to participate in the SDP will need to enroll in the SDP. Cash dividends will continue to be paid to those shareholders who are not enrolled in either of the DRIP or SDP.

Participation in the SDP will not relieve shareholders of any liability for taxes that may be payable on dividends. Shareholders should consult their own tax advisors concerning the tax implementation of their participation in the SDP having regard for their own personal circumstances.

For further information regarding the SDP, please contact Valiant Trust Company at 403-233-2801.

Election of Directors

Twin Butte is also pleased to announce that the nominees listed in the Information Circular were elected as directors of Twin Butte.  The detailed results of the vote for the election of directors held at its annual and special meeting of shareholders earlier today in Calgary, Alberta are set out below.

On a vote by ballot, each of the following seven nominees proposed by management was elected as a director of Twin Butte:

Nominee Votes For % For Votes Withheld % Withheld
R. James Brown 131,946,323 99.65 465,719 0.35
John A. Brussa 122,038,102 92.17 10,373,940 7.83
David M. Fitzpatrick 131,939,778 99.64 472,264 0.36
Thomas J. Greschner 126,770,899 95.74 5,641,143 4.26
James Saunders 127,338,796 96.17 5,073,246 3.83
Warren Steckley 131,956,806 99.66 455,236 0.34
William A. Trickett 131,940,029 99.64 472,013 0.36

About Twin Butte

Twin Butte is a value oriented, intermediate producer with a significant and growing scalable and repeatable drilling inventory focused on large original oil in-place conventional heavy oil exploitation. With a stable low decline production base Twin Butte is well positioned to live within cash flow while providing shareholders with a sustainable dividend and moderate per share production growth potential over the long term.

Reader Advisory

This news release does not constitute an offer to sell or the solicitation of an offer to buy the securities in the United States, in any province or territory of Canada or in any other jurisdiction. The Common Shares have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any U.S. state securities laws and may not be offered or sold in the United States absent registration or absent an applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. There shall be no sale of Common Shares in any jurisdiction in which an offer to sell, a solicitation of an offer to buy or a sale would be unlawful.

SOURCE: Twin Butte Energy Ltd.

Contact:

Twin Butte Energy Ltd.

Jim Saunders
President and Chief Executive Officer
Tel: (403) 215-2040
Fax: (403) 215-2055

R. Alan Steele
Vice President, Finance, Chief Financial
Officer and Corporate Secretary
Tel: (403) 215-2692
Fax: (403) 215-2055
Website:  www.twinbutteenergy.com

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