Twin Butte stock drops after oil producer warns well problems will hit cash flow

CALGARY _ Twin Butte Energy Ltd. stock (TSX:TBE) plunged in heavy trading Friday, dropping 42 cents or nearly 16 per cent to $2.24 with more than 11.6 million traded by early afternoon. The Calgary company says one of its best-performing properties has seen its production drop by 800 to 900 barrels per day since the end of 2012 _ roughly a quarter of the peak of 3,400 barrels per day. It expects to maintain the current dividend level but reduce 2013 capital spending by 23 per cent to $85 million to cope with the reduced cash flow expected this year.