Twin Butte is focused on low risk development in both the Lloydminster heavy oil fairway and medium grade oil Provost region, where our capital efficiency will allow us to live within cash flow. This sustainable moderate growth and income model relies on a disciplined capital program where projects provide lower risk opportunities with shorter payout and high rates of return on capital deployed.

Key attributes of our strategy are as follows:

• Conduct low risk drilling and recompletion activities on oil; let natural gas volumes decline
• Active hedging strategy
• Monetize undeveloped land base through farmout or sale
• Acquire additional long life, reasonable netback, oil assets
• Maintain a conservative financial structure
• Targeting an all-in payout ratio of ~ 100%, defined as the sum of cash dividends and capital expenditures as a percentage of cash flow

The Company will continue to look for consolidation opportunities in its operating areas including both heavy and medium grade oil assets.