whitecap resources inc. and spry energy ltd. announce significant light oil combination, $136 million bought deal financing and increased 2011 guidance

WHITECAP RESOURCES INC. AND SPRY ENERGY LTD. ANNOUNCE SIGNIFICANT LIGHT OIL COMBINATION, $136 MILLION BOUGHT DEAL FINANCING AND INCREASED 2011 GUIDANCE

CALGARY, ALBERTA – Whitecap Resources Inc. (“Whitecap” or the “Company”) (TSX: WCP) and Spry Energy Ltd. (“Spry”), are pleased to announce that they have entered into an arrangement agreement (the “Arrangement Agreement”) with respect to a combination of the two entities.  Spry is an oil weighted private company with its primary operations located in the Pembina area of west central Alberta with the majority of its production and reserves focused in the Cardium formation. The Arrangement Agreement provides for total consideration of $223.0 million payable by Whitecap including the assumption by Whitecap of Spry’s net debt (the “Transaction”). The Transaction will be funded in part through a $136 million bought deal financing (the “Offering”) of subscription receipts in the capital of Whitecap at $6.80 per subscription receipt.

 

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