Naperville, IL -- (ReleaseWire) -- 11/01/2012 --Twin Butte Energy Ltd (TBE) agreed to acquire Waseca Energy Inc (Waseca) from Sprott Resource Corp (SRC), and Waseca’s shareholders, for a purchase consideration of approximately CAD134.5m ($136.3m) or CAD1.35 ($1.36) per share in cash. The consideration will comprise a minimum of CAD32.2m ($32.63m) and a maximum of CAD58.9m ($59.7m) in cash (assuming the Waseca options and performance shares are arranged in accordance with the arrangement agreement) and a minimum of 28.9 million and a maximum of 39 million in TBE common shares depending on elections between cash and shares made by Waseca shareholders. In the transaction, the shareholders of Waseca will receive 0.5133 TBE shares for each Waseca share held, based on the 10 day volume weighted average trading price of TBE as on August 31, 2012 at CAD2.63 ($2.66) per share.

SRC is the majority shareholder in Waseca with 81.1% interest (76.3 million shares). SRC will receive CAD99.4m ($100.74m) in cash and TBE common shares for its holdings in Waseca, following which it will hold approximately 9% of the outstanding TBE common shares. RBC Capital Markets, LLC is acting as financial advisor to Waseca Energy in the transaction. Peters & Co. Limited is acting as financial advisor, while Raymond James Ltd. and National Bank Financial Inc. are acting as strategic advisors to TBE in the transaction.

The transaction is expected to be completed in early November 2012, subject to, among other things, the approval of at least 66.66% of the Waseca shareholders voting on the arrangement, the approval of the Court of Queen's Bench of Alberta, the receipt of all necessary regulatory and stock exchange approvals, and certain closing conditions that are customary for a transaction of this nature.

Scope

- Rationale behind Twin Butte Energy acquiring Waseca to Expand its Heavy Oil Assets.
- Rationale behind Sprott Resource Corp divestment in Waseca.
- Geography Covered- Canada

Reasons to buy

- Develop a sound understanding of Twin Butte Energy acquiring Waseca to Expand its Heavy Oil Assets.
- To know about Twin Butte's inorganic expansion of its Heavy Oil Assets in Lloydminster.
- To have an understanding of Sprott Resource Corp divestment in Waseca.

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