whitecap resources inc. announces 127% increase to 2012 year-end reserves and provides operational update

WHITECAP RESOURCES INC. ANNOUNCES 127% INCREASE TO 2012 YEAR-END RESERVES AND PROVIDES OPERATIONAL UPDATE

CALGARY, ALBERTA – Whitecap Resources Inc. ("Whitecap" or the "Company") (TSX: WCP) is pleased to announce the results from its 2012 year-end oil and gas reserves evaluation and provide shareholders with an operational update.

2012 YEAR-END RESERVES

Whitecap’s year-end 2012 reserves were evaluated by independent reserves evaluator McDaniel & Associates Consultants Ltd. (“McDaniels”). The evaluation of all of Whitecap’s oil and gas properties was done in accordance with the definitions, standards and procedures contained in the Canadian Oil and Gas Evaluation Handbook (“COGE Handbook”) and National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities (“NI 51-101”). Additional reserve information as required under NI 51-101 will be included in the Company’s Annual Information Form which will be filed on SEDAR by March 22, 2013.

Highlights of the 2012 reserve report include:

  • Achieved finding and development (“F&D”) costs of $18.07 per proved plus probable boe, including changes in future development costs, which results in a recycle ratio of 2.5 times.
  • Achieved finding, development and acquisition (“FD&A”) costs of $20.94 per proved plus probable boe, including changes in future development costs, which results in a recycle ratio of 2.2 times.
  • Increased proved plus probable reserves by 127% to 87.5 MMboe (69% oil and NGLs) and proved reserves by 138% to 60.9 MMboe (70% oil and NGLs).
  • On a per share, fully diluted basis, increased proved plus probable reserves by 30% and proved reserves by 36%.
  • Increased the proved developed producing component of total proved reserves from 59% to 61% year over year. Total proved reserves now represent 70% of total proved plus probable reserves compared to 66% in the prior year.
  • Proved plus probable reserve additions replaced 1,054% of production in the year and proved reserve additions replaced 788% of production.
  • The 2012 year-end reserves evaluation includes 289 undeveloped drilling locations of which 91% have proved reserves assigned.
  • Maintained a long reserve life index of 14.0 years for proved plus probable reserves and 9.8 years for proved reserves, based on fourth quarter 2012 average production of 17,000 boe/d.

To view the full press release, click here for the pdf.