WHITECAP RESOURCES INC. SIGNIFICANTLY INCREASES YEAR END RESERVES AND NET ASSET VALUE

CALGARY, Feb. 1 /CNW/ - Whitecap Resources Inc. ("Whitecap" or the "Company") (TSX: WCP) is pleased to provide our 2010 year end reserves. The following results highlight the success of our 2010 capital program and high quality asset base.

Highlights:

  • Increased proved plus probable reserves by 169 percent to 13.7 mmboe (65 percent oil and NGL's) and proved reserves by 192 percent to 8.3 mmboe (64 percent oil and NGL's).
  • On a per share basis (fully diluted) increased proved plus probable reserves by 43 percent and proved reserves by 56 percent.
  • Achieved finding, development and acquisition ("FD&A") costs of $14.50 per proved plus probable boe and $22.21 per proved boe, excluding changes in future development costs.
  • Generated a recycle ratio of 2.5 times on proved plus probable reserves based on our current operating netback of $35.50/boe.
  • Maintained a long reserve life index of 11.7 years based on our 2010 exit production rate of 3,200 boe/d.
  • Developed an undrilled oil weighted inventory of 180 (170 oil, 10 natural gas) wells, of which 125 (68 percent) are not included in the reserve report.
  • Increased our estimated net asset value by 76 percent to $5.35 per share - fully diluted using (PVBT10) values. Current net asset value pro forma the previously announced January 15, 2011 light oil acquisition in Valhalla is $5.46 per share - fully diluted using (PVBT10) values.

The Company's reserves were independently evaluated by McDaniel & Associates Consultants Ltd. ("McDaniel") as at December 31, 2010.

Summary of Company Gross Reserves (Forecast Pricing)(1)

  As at December 31, 2010(2) As at December 31, 2009(3)(4) % Change
  Oil
(mbbls)
Gas
(mmscf)
NGL
(mbbls)
Total
(mboe)
Total
(mboe)
Proved producing 2,914 11,032 312 5,064 1,966  
Proved non-producing 125 1,388 27 384 774  
Undeveloped 1,801 5,224 138 2,810 88  
Total proved 4,840 17,644 477 8,257 2,827 192
Probable 3,348 10,783 274 5,419 2,255 140
Total proved plus probable 8,188 28,427 751 13,676 5,083 169

Summary of Before Tax Net Present Values (Forecast Pricing) ($M)(1)(5)

  As at December 31, 2010(2) As at December 31, 2009 (3)(4) % Change
  0% 5% 10% 10%
Proved producing 205,576 156,453 126,647 42,020  
Proved non-producing 10,735 8,194 6,409 5,970  
Undeveloped 80,078 46,855 27,225 2,383  
Total proved 296,390 211,502 160,281 50,373 218
Probable 234,822 133,287 85,163 24,701 245
Total proved plus probable 531,211 344,790 245,443 75,074 227

        FINDING,
DEVELOPMENT AND
ACQUISITION COSTS(6)
CAPITAL EXPENDITURES(6)(7)   RESERVES(1)
Year ended December 31, 2010 Unaudited
($000's)
Total
Proved
(mboe)
Proved Plus
Probable
(mboe)
Total
Proved
($/boe)
Proved Plus
Probable
($/boe)
Exploration, development and revisions 40,205 2,864 2,217 14.04 18.13
Acquisitions 91,988 3,089 6,900 29.78 13.33
Total 132,193 5,953 9,117 22.21 14.50

Notes:

(1) Gross Company reserves are the Company's total interest share before the deduction of any royalties and without including any royalty interest of the Company.
(2) Based on McDaniel's January 1, 2011 escalated price forecast.
(3) Based on Whitecap's internally prepared reserve evaluation using GLJ Petroleum Consultants' January 1, 2010 escalated price forecast.
(4) Whitecap is the resulting entity following the completion of the reverse takeover of Spitfire Energy Ltd. ("Spitfire") by Whitecap and the subsequent amalgamation of Whitecap and Spitfire on July 1, 2010.  In accordance with GAAP, Whitecap was deemed to be the acquirer of Spitfire and therefore, the December 31, 2009 reserves information set forth above and elsewhere in this press release reflects Whitecap's reserves as at December 31, 2009.
(5) The net present values of future net revenue do not represent fair market value.
(6) Exploration, development and revisions exclude the change during the most recent financial year in estimated future development costs relating to proved and proved plus probable reserves.  Including changes in future development costs, FD&A costs are $32.64 per proved boe and $25.89 per proved plus probable boe. The aggregate of the exploration and development costs incurred in the most recent financial year and the change during that year in estimated future development costs generally will not reflect total finding and development costs related to reserve additions for that year.
(7) The capital expenditures include the announced purchase price of corporate acquisitions rather than the amounts allocated to property, plant and equipment for accounting purposes.  The capital expenditures also exclude capitalized administration costs and acquisition costs.

"Boe" means barrel of oil equivalent on the basis of 6 mcf of natural gas to 1 bbl of oil. Boe's may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.


SOURCE Whitecap Resources Inc.

For further information:

Grant Fagerheim, President & CEO
or
Thanh Kang, VP Finance and CFO

Whitecap Resources Inc.
500, 222 - 3 Avenue SW
Calgary, AB, T2P 0B4

Main Phone (403) 266-0767
Fax (403) 266-6975


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