Whitecap Resources Inc. ("Whitecap") (TSX: WCP) is pleased to announce that Whitecap has completed the previously announced acquisition of a private company ("PrivateCo") pursuant to a plan of arrangement (the "Arrangement") under the provisions of the Business Corporations Act (Alberta). Whitecap has acquired all of the issued and outstanding common shares of PrivateCo through the issuance of 27,535,867 Whitecap common shares and the assumption of PrivateCo's working capital surplus of approximately $2.8 million (the "Transaction").
The Transaction increases and consolidates Whitecap's exposure in the western Saskatchewan Viking light oil resource play where we have experienced significant operational success in 2012 and 2013. Whitecap anticipates replicating and potentially improving upon these results in 2014. Based on our near-term and longer-term production and cash flow per share forecast as well as our financial strength with a 2014 debt to cash flow ratio of approximately 1.0 times, our monthly dividend has been increased to a long-term sustainable level of $0.0567 per share ($0.68 per share annualized) starting with our January 2014 dividend payable in February 2014.
Current production pro forma the acquisition is in excess of 25,500 boe/d (71% oil & NGL's) which provides our shareholders with a base of strong cash flow generation to start the year. Whitecap has kicked off its 2014 capital program with a very active first quarter drilling program of approximately 80 (70.0 net) wells in our four key operating areas. The majority of these will be horizontal wells utilizing multi-frac completion technology of which approximately 9.0 (7.7 net) are anticipated to be extended reach horizontal ("ERH") wells following up on our three successful ERH wells in 2013. Our three ERH wells in 2013 achieved average IP(30) rates that were 2.1 times higher than our standard length horizontal wells at 675 boe/d with DC&E costs of $3.6 million per well. We anticipate first quarter of 2014 exit production of approximately 28,000 - 29,000 boe/d (72% oil & NGL's).
Whitecap Resources Inc. is a dividend paying, oil-weighted company focused on providing sustainable monthly dividends to its shareholders and per share growth through a combination of accretive oil-based acquisitions and organic growth on existing and acquired assets.
Source: Whitecap Resources Inc.
