whitecap resources inc. announces continued reserves per share growth and record low reserve addition costs across all categories

February 27, 2017

WHITECAP RESOURCES INC. ANNOUNCES CONTINUED RESERVES PER SHARE GROWTH AND RECORD LOW RESERVE ADDITION COSTS ACROSS ALL CATEGORIES

CALGARY, ALBERTA – Whitecap Resources Inc. ("Whitecap" or the "Company") (TSX: WCP) is pleased to present the results of our 2016 year end oil and gas independent reserves evaluation prepared by McDaniel & Associates Consultants Ltd. (“McDaniels”). 

Whitecap achieved exceptionally low cost organic reserve additions and growth in 2016 after spending only $174 million of field capital (26% reduction compared to the previous year) which represented only 45% of our funds flow. Record low finding and development (“F&D”) costs of $2.34/boe, including changes in future development capital (“FDC”), resulted in a recycle ratio of 11.3 times in 2016. Whitecap was also able to capitalize on the low crude oil price environment by transacting on $486.2 million (net) of strategic acquisitions enhancing our long-term sustainability and free funds flow profile. In aggregate, we invested $660.2 million (including acquisitions and net of divestments) into the development and expansion of our existing core areas growing total proved plus probable ("TPP") reserves by 28% or 13% per debt-adjusted share at a finding, development and acquisition (“FD&A”) cost of $11.51/boe, including changes in FDC, resulting in a recycle ratio of 2.3 times. Whitecap’s net asset value based on the present value of future net revenues discounted at 10% ("NPV10") before tax of our TPP reserves, plus our internally estimated undeveloped land value of $75.9 million net of estimated net debt of $818.6 million at December 31, 2016 was $12.25/share (based on 372.4 million fully diluted shares outstanding as of December 31, 2016), a 14% increase from $10.78/share in 2015.

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