Twin Butte Energy Ltd. provides an operational update.

Based on field estimates for June, average production for Q2 2013 is estimated to be between 16,500 and 16,700 boe per day, falling slightly short of internal expectations of 17,200 boe per day or a 3% variance. Extremely wet weather and prolonged spring breakup conditions severely limited the Company's ability to access leases and truck produced oil, often forcing wells to be shut-in.

Cash flow is estimated to be in the $31 - $32.5 million range or slightly ahead of the first quarter. Capital expenditures were also limited due to the weather and extended road bans with estimated capital for the second quarter of $16 million or approximately $4 million below internal targets. Net debt will decrease to approximately $196 million with an all in payout ratio of approximately 84 percent. With the payout ratio running well below 100 percent year to date the Company expects to be able to increase the third quarter capital plan and bring the year to date payout ratio back closer to 100 percent.

Tags: Twin Butte Energy Ltd.