CALGARY, May 11 /CNW/ - Whitecap Resources Inc. ("Whitecap", "we", "us", "our" or the "Company") (TSX: WCP) is pleased to announce it has filed on SEDAR its unaudited financial statements and related Management's Discussion and Analysis ("MD&A") for the three months ended March 31, 2011. Selected financial and operational information is outlined below and should be read in conjunction with Whitecap's unaudited financial statements and related MD&A which are available for review at www.sedar.com and on our website at www.wcap.ca.

The financial and operating results below do not include the recently acquired Spry Energy Ltd. ("Spry") acquisition:

                                                 Three months ended March 31,
    Financial ($000s except per share amounts)           2011           2010
    Petroleum and natural gas revenues                 16,245          4,468
    Funds from operations(1)                            8,286          1,998
      Per share basic                                    0.20           0.13
      Per share diluted                                  0.19           0.13
    Net Income                                             50            531
      Per share basic/diluted                            0.00           0.03
    Development capital expenditures                   21,695          3,722
    Property acquisitions (cash consideration)         25,178          1,584
    Bank debt and working capital deficit(2)           71,680         13,574

      Crude oil (bbls/d)                                1,645            337
      NGLs (bbls/d)                                       181             94
      Natural gas (mcf/d)                               6,666          3,131
      Total (boe/d)                                     2,937            953
    Average realized prices
      Crude oil ($/bbl)                                 85.08          78.93
      NGLs ($/bbl)                                      67.54          64.61
      Natural gas ($/mcf)                                4.20           5.42
      Total ($/boe)                                     61.46          52.09
    Operating netbacks prior to hedges ($/boe)          37.67          30.30
    Operating netbacks after hedges ($/boe)             35.82          31.52
    Total wells drilled                         11.0 (8.4 net)  4.0 (1.6 net)
    Success rate                                          100%           100%
    Undeveloped land holdings (acres)
      Gross                                            67,325         12,098
      Net                                              47,146          4,984
    Common shares, end of period (000s)                41,828         15,331
    Weighted average common shares (000s)              41,827         15,331
    (1) Funds from operations are calculated as cash flow from operating
        activities before the change in non-cash working capital and are a
        non-GAAP measurement (see "Non-GAAP measures").
    (2) Excludes risk management contracts.


Whitecap is pleased to provide you with our report on our first quarter 2011 operational and financial results. In the first quarter our primary focus was on efficient capital spending in each of our core oil growth areas. Our ongoing initiatives to expand our future growth inventory also culminated with the announcement of the corporate acquisition of Spry which closed on April 20, 2011. The acquisition added a significant component of light oil growth potential to our core Pembina Cardium footprint.

During the quarter we were 100% successful with our drilling program, drilling 11 successful oil wells including nine horizontal wells completed with multi-stage fracs in the Valhalla North and Pembina areas and two vertical wells at Fosterton in southwest Saskatchewan. To ensure that we were able to have drilling, completion and auxiliary services readily available to carry out our capital program, drilling activity in Pembina and Fosterton did not commence until early February and our activity in Valhalla North commenced in mid-January. First quarter capital spending resulted in eight of the eleven wells drilled being placed on production before field operations were suspended as a result of spring break-up in late March and mid-April in our areas. We will be bringing the three remaining wells drilled on-stream after break-up when field conditions allow us to complete these operations.

Our accomplishments in the first quarter of 2011 included:

    -   Closing the acquisition of a partner interest in the Montney Sexsmith
        light oil pool on January 14, 2011 for total consideration of
        approximately $25 million. The acquisition provides for common pool
        ownership with only one partner and sets the stage for the optimal
        and efficient development of the pool going forward.

    -   Executing a successful $21.7 million capital program, including $19.1
        million on drilling and completing 11 (8.4 net) oil wells with a 100%
        success rate and $2.3 million on recompletions and facilities.

    -   Increased average production volumes by 46% to 2,937 boe/d (62% oil
        and NGLs) from 2,014 boe/d (56% oil and NGLs) in the fourth quarter
        of 2010. Including the Spry acquisition, our current production base
        is approximately 6,300 boe/d to 6,500 boe/d (68% oil and NGLs).

    -   Generated cash flow from operations of $8.3 million in the quarter, a
        two fold increase compared to $3.7 million in the fourth quarter of

    -   Increased our operating netback to $37.67/boe from $27.63/boe in the
        fourth quarter of 2010, a 36% increase as a result of higher crude
        oil prices and a reduction in operating costs on a unit basis.

    -   Decreased our operating costs to $12.93/boe from $17.64/boe in the
        fourth quarter of 2010. We anticipate operating costs to be under
        $11.00/boe by the fourth quarter of 2011 as a result of operational

    -   Realized cash G&A expenses of $2.67/boe, a 37% reduction from the
        fourth quarter of 2010. We will continue to reduce G&A per boe and
        anticipate average cash G&A per boe of less than $2.00 in 2011.

Subsequent to the quarter end we successfully closed the previously announced Spry acquisition for approximately $223 million including the assumption of debt. The Spry acquisition was partially funded by a $149.6 million bought deal public offering of 22.0 million subscription receipts at $6.80 per subscription receipt. Upon closing of the Spry acquisition on April 20, 2011 each subscription receipt was exchanged for one common share of Whitecap.

Concurrent with the closing of the Spry acquisition our syndicated credit facility was increased to $145 million from $85 million. The increase to our facility will provide us greater financial flexibility to further execute our business plan and deliver an objective of per share growth in cash flow, production and reserves.

We welcome and are pleased to advise that Don Cowie has joined our board of directors. Don is currently President of JOG Capital Inc., a private equity partnership focused on junior oil and gas companies in Western Canada and brings with him over 25 years of experience in investment activity in the oil and gas industry.

Looking Ahead

The combination of our existing assets and those of the recently acquired Spry assets provide us with a 6,300 boe/d to 6,500 boe/d production base to move forward into the remainder of 2011 and beyond. With a sizeable inventory of oil prospects, a sound balance sheet and a strong oil price environment that provides significant cash flow for re-investment, we expect to continue to provide successful per share growth in cash flow, production and reserves from the capital program we have laid out through to the end of the year.

We again thank you for your continued support and interest in Whitecap and look forward to advising you of our progress as we move through the remainder of 2011.

Important Information

Whitecap reports in Canadian dollars unless otherwise noted. As of January 1, 2011, Whitecap prepares its interim financial statements and comparative information in accordance with International Financial Reporting Standards (IFRS) 1, "First-time Adoption of International Financial Reporting Standards", and with International Accounting Standard 34, "Interim Financial Reporting," as issued by the International Accounting Standards Board. Previously, Whitecap's financial statements were prepared in accordance with Canadian generally accepted accounting principles (previous GAAP). Reconciliations between Canadian GAAP and IFRS financial information can be found in the financial statements available at www.sedar.com and on the Company's website at www.wcap.ca.

Non-GAAP measures

This document contains the terms "cash flow" and "operating netbacks", which do not have a standardized meaning prescribed by GAAP and therefore may not be comparable with the calculation of similar measures by other companies. Whitecap uses cash flow and operating netbacks to analyze financial and operating performance. Whitecap feels these benchmarks are key measures of profitability and overall sustainability for the Company. Both of these terms are commonly used in the oil and gas industry. Cash flow and operating netbacks are not intended to represent operating profits nor should they be viewed as an alternative to cash flow provided by operating activities, net earnings or other measures of financial performance calculated in accordance with GAAP. Cash flows are calculated as cash flows from operating activities less changes in non-cash working capital. The Company calculates cash flow per share using the same method and shares outstanding that are used in the determination of earnings per share. Operating netbacks are determined by deducting royalties, production expenses and transportation and selling expenses from oil and gas revenue.

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, the effect of the acquisition of Spry and the partner interest in the Montney Sexsmith oil pool on our future operations, performance and opportunities, plans to bring wells on-stream and the timing thereof, financial, operating and production results and business opportunities, including expected future operating costs and G&A expenses, the impact of our increased credit facility on our financial flexibility, our capital expenditure program, drilling and development plans and the timing thereof and results therefrom including our plans to deliver per share growth in cash flow, production and reserves. 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 future.

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, or 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

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