CALGARY, Sept. 12, 2011 /CNW/ - Whitecap Resources Inc. ("Whitecap",
"we", "us", "our" or the "Company") (TSX: WCP) is pleased to provide
shareholders with an update on its operational success to date.
A total of 40 oil wells are planned for the second half of 2011, of
which 14 wells have been drilled thus far with a 100% success rate and
an additional four wells planned prior to the end of the third quarter.
Of the 14 wells drilled, 10 are on production and are performing, on
average, better than our forecasted rates. As a result, Whitecap's base
production is approximately 7,000 to 7,100 boe/d with an additional 300
boe/d to be added in the near term. The Company remains on target to
meet or exceed our 2011 exit production guidance of 8,200 to 8,300
West Central Alberta - Pembina (Cardium light oil)
Since the second quarter, we have utilized two drilling rigs
continuously and will continue to do so for the balance of the year and
into 2012 for our Cardium drilling program. Year to date we have
drilled 18 (16.4 net) horizontal Cardium oil wells and for the balance
of the year we anticipate drilling an additional 19 (14.2 net) Cardium
We continue to optimize our multi-stage fracture stimulations and are
currently utilizing a water-based foam fluid system. Detailed technical
analysis in conjunction with our growing operational expertise has
resulted in both capital efficiency and productivity improvements. The
average 30 day rate from our most recent five horizontal Cardium wells
in East Pembina increased to 290 boe/d, 15% over previous wells
drilled. Our total well costs, with an average of 18 fracture
stimulations each, have decreased 19% to less than $2.2 million from a
previous average of $2.7 million per horizontal Cardium oil well.
We are continuing to evaluate the applicability of reduced spacing and
waterflood schemes for our Cardium lands and plan to implement pilot
schemes in 2012. Positive results from these pilots have the potential
to more than double Whitecap's current inventory of Cardium horizontal
Peace River Arch - Valhalla (Montney light oil)
Subsequent to the second quarter, we have drilled three (1.5 net)
horizontal wells in the Montney Sexsmith oil pool. The first well was
completed with 12 fracture stimulations and averaged 533 boe/d over its
first 10 days of production. This once again confirms the Sexsmith
reservoir is of adequate quality to allow for an effective expansion of
the waterflood over the entire pool. In addition, the first well from
our 2011 Montney Sexsmith drilling program continues to produce at a
restricted rate of 650 boe/d after four months.
The other two wells drilled in the third quarter were drilled from a
single surface location and will be completed sequentially over the
next two weeks. These two wells drilled in the third quarter as well as
the three Montney Sexsmith wells planned for the remainder of 2011 are
all part of the expansion of the Valhalla Montney Sexsmith waterflood.
The first phase of the waterflood expansion has commenced and will carry
over into the first quarter of 2012. Our waterflood results to date
combined with our full field simulation model indicates that we will
more than double the ultimate oil recovery in the Montney Sexsmith from
our current bookings.
We have had a "fit for purpose" drilling rig working continuously in
Valhalla and as a result drilling costs have come down by 6% per well
to $3 million gross and we continue to optimize our multi-stage
fracturing process, further reducing our completion costs by 6% per
well to $1.5 million gross. Our working interest in Valhalla is 50% and
on a net basis drilling and completion costs are $2.3 million per well.
For the balance of the year we anticipate drilling an additional three
(1.5 net) horizontal Montney Sexsmith oil wells, one (0.5 net)
horizontal Middle Montney oil well, one (0.5 net) vertical exploratory
oil well and potentially three (2.5 net) additional shallower
horizontal oil wells.
SW Saskatchewan - Fosterton (Roseray light oil)
A total of 4 (3.5 net) wells are expected to be drilled before year end
which includes one horizontal well and three vertical wells. These
wells will further evaluate and develop the Roseray and Cantuar oil
formations. One of these wells is targeting the extension of a pool
which could result in several follow-up development wells. As well,
minor modifications were made to the Fosterton facilities in addition
to increasing the water disposal capacity which has resulted in a 33%
increase in production. Whitecap is finalizing its plans for a major
facility expansion based on the encouraging results to date.
We are pleased with our results to date in our key growth areas and look
forward to updating our shareholders as we progress through the
remainder of 2011 and into 2012.
Note Regarding Forward-Looking Statements and Other Advisories
This press release contains forward-looking statements and
forward-looking information (collectively "forward-looking
information") within the meaning of applicable securities laws relating
to the Company's plans and other aspects of our anticipated future
operations, management focus, strategies, business development plans,
performance and opportunities, plans to bring wells on-stream and the
timing thereof, financial, operating and production guidance and
business opportunities, our capital expenditure program, drilling and
development plans and the timing thereof and ultimate oil recovery.
Forward-looking information typically uses words such as "anticipate",
"believe", "project", "expect", "goal", "plan", "intend" or similar
words suggesting future outcomes, statements that actions, events or
conditions "may", "would", "could" or "will" be taken or occur in the
The forward-looking information is based on certain key expectations and
assumptions made by our management, including expectations and
assumptions concerning prevailing commodity prices, exchange rates,
interest rates, applicable royalty rates and tax laws; future
production rates and estimates of operating costs; performance of
existing and future wells; reserve and resource volumes; anticipated
timing and results of capital expenditures; the success obtained in
drilling new wells; the sufficiency of budgeted capital expenditures in
carrying out planned activities; the timing, location and extent of
future drilling operations; the state of the economy and the
exploration and production business; results of operations;
performance; business prospects and opportunities; the availability and
cost of financing, labour and services; the impact of increasing
competition; ability to market oil and natural gas successfully and our
ability to access capital.
Although we believe that the expectations and assumptions on which such
forward-looking information is based are reasonable, undue reliance
should not be placed on the forward-looking information because
Whitecap can give no assurance that they will prove to be correct.
Since forward-looking information addresses future events and
conditions, by its very nature they involve inherent risks and
uncertainties. The Company's actual results, performance or achievement
could differ materially from those expressed in, or implied by, the
forward-looking information and, accordingly, no assurance can be given
that any of the events anticipated by the forward-looking information
will transpire or occur, or if any of them do so, what benefits that
the Company will derive therefrom. Management has included the above
summary of assumptions and risks related to forward-looking information
provided in this press release in order to provide securityholders with
a more complete perspective on our future operations and such
information may not be appropriate for other purposes.
Readers are cautioned that the foregoing lists of factors are not
exhaustive. Additional information on these and other factors that
could affect our operations or financial results are included in
reports on file with applicable securities regulatory authorities and
may be accessed through the SEDAR website (www.sedar.com).
These forward-looking statements are made as of the date of this press
release and we disclaim any intent or obligation to update publicly any
forward-looking information, whether as a result of new information,
future events or results or otherwise, other than as required by
applicable securities laws.
Note: "Boe" means barrel of oil equivalent on the basis of 6 thousand
cubic feet ("mcf") of natural gas to 1 bbl. Boes 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
Thanh Kang, VP Finance & CFO
Whitecap Resources Inc.
500, 222 - 3 Avenue SW
Calgary, AB T2P 0B4
Main Phone (403) 266-0767
Fax (403) 266-6975