Reserve Information
2015 YEAR END RESERVES
Whitecap's 2015 year end reserves were evaluated by independent reserves evaluator McDaniel & Associates Consultants Ltd. ("McDaniels") in accordance with the definitions, standards and procedures contained in the Canadian Oil and Gas Evaluation Handbook (“COGE Handbook”) and National Instrument 51101  Standards of Disclosure for Oil and Gas Activities (“NI 51101”) as of December 31, 2015. Additional reserve information as required under NI 51101 is included in our Annual Information Form which has been filed on SEDAR.
The financial and operational information below is based on estimates and are unaudited.
2015 Reserve Highlights
Proved Developed Producing (“PDP”)
 Increased PDP reserves by 22% to 113.2 MMboe (75% oil and NGLs) and 4% per fully diluted share.
 Added 14.0 MMboe of PDP reserves at an F&D cost of $12.57/boe which generated a recycle ratio of 2.9x.
 Our 2015 drilling program resulted in PDP reserve additions replacing 93% of production and, when including PDP acquisition reserves, replaced 236% of production.
 PDP reserves represent 57% of total proved reserves and 41% of total proved plus probable reserves on a reserve basis.
 Positive PDP technical revisions of 12.0 MMboe of which 7.0 MMboe (58%) is related to well or pool performance being better than previously forecast in the prior year reserve report and 4.4 MMboe (37%) is related to the outperformance of our waterflood properties.
 Increased the PDP net present value of the future net revenue discounted at 10% (“NPV10”) to $1.9 billion or $6.39 per fully diluted share.
Total Proved (“TP”)
 Increased TP reserves by 29% to 200.0 MMboe (77% oil and NGLs) and 10% per fully diluted share.
 Added 17.8 MMboe of TP reserves at an F&D cost of $8.86/boe, including changes in FDC, which generated a recycle ratio of 4.1x.
 Our 2015 drilling program resulted in TP reserve additions replacing 120% of production and, when including TP acquisition reserves, replaced 400% of production.
 TP reserves comprise 72% of total proved plus probable reserves on a reserve basis and 72% on an NPV10 basis.
 Increased the TP NPV10 by 7% to $3.0 billion or $9.86 per fully diluted share.
Total Proved Plus Probable (“TPP”)
 Increased TPP reserves by 27% to 278.9 MMboe (77% oil and NGLs) and 8% per fully diluted share.
 Added 18.2 MMboe of TPP reserves at an F&D cost of $6.97/boe, including changes in FDC, which generated a recycle ratio of 5.2x.
 Achieved FD&A costs of $18.27 per TPP boe, including FDC, which results in a recycle ratio of 2.0x.
 Our 2015 drilling program resulted in TPP reserve additions replacing 122% of production and, when including TPP acquisition reserves, replaced 499% of production.
 Increased the TPP NPV10 by 10% to $4.1 billion or $13.61 per fully diluted share despite a 40% decrease in McDaniels’ US$ WTI forecast in 2016.
Summary of Reserves
(Forecast Pricing)
As at December 31, 2015 ^{(1)}
Company Share Reserves ^{(2)}  
Description  Oil (Mbbl)  Gas (MMcf)  NGL (Mbbl)  Total (Mboe) 
Proved producing  76,929  169,278  8,046  113,188 
Proved nonproducing  228  3,488  52  862 
Proved undeveloped  63,646  99,886  5,609  85,902 
Total proved ^{(3)}  140,803  272,652  13,707  199,952 
Probable  52,979  117,819  6,287  78,902 
Total proved plus probable ^{(3)}  193,782  390,471  19,994  278,854 
^{(1) }Based on McDaniels’ January 1, 2016 forecast prices.
^{(2) }Company share reserves are the Company’s total working interest reserves before the deduction of any royalties and including any royalty interests payable to the Company.
^{(3) }Numbers may not add due to rounding.
Total FDC to develop TP reserves is $1.5 billion undiscounted ($1.2 billion discounted at 10%) and to develop TPP reserves is $1.6 billion undiscounted ($1.3 billion discounted at 10%).
Summary of Before Tax Net Present Values
(Forecast Pricing)
As at December 31, 2015 ^{(1)}
Before Tax Net Present Value ($MM) ^{(2)}  
Discount Rate  
Description  0%  5%  10%  15%  20%  
Proved producing  3,691  2,566  1,947  1,569  1,319  
Proved nonproducing  16  10  7  5  4  
Undeveloped  2,635  1,625  1,050  700  475  
Total proved ^{(3)}  6,342  4,201  3,004  2,275  1,798  
Probable  3,978  1,916  1,140  778  579  
Total proved plus probable ^{(3)}  10,319  6,117  4,143  3,053  2,377  
Per fully diluted share  $33.89  $20.09  $13.61  $10.02  $7.81 
^{(1) }Based on McDaniels’ January 1, 2016 forecast prices.
^{(2) }Includes abandonment and reclamation costs as defined in NI 51101.
^{(3)} Numbers may not add due to rounding.
Pricing Assumptions
The reserve evaluation was based on McDaniels’ forecast pricing and foreign exchange rates at January 1, 2016 as outlined below.
Year

WTI Cushing Oklahoma
($US/Bbl)

Edmonton Par Price
40° API($Cdn/Bbl)

AECO Gas Price ($Cdn/MMbtu)

Inflation Rate %/Year ^{(1)}

Exchange Rate ($US/$Cdn) ^{(2)}

Forecast  
2016  45.00  56.60  2.70    0.730 
2017  53.60  66.40  3.20  2.00  0.750 
2018  62.40  72.80  3.55  2.00  0.800 
2019  69.00  80.90  3.85  2.00  0.800 
2020  73.10  83.20  3.95  2.00  0.825 
2021  77.30  88.20  4.20  2.00  0.825 
2022  81.60  93.30  4.45  2.00  0.825 
2023  86.20  98.70  4.70  2.00  0.825 
Thereafter  +2%/yr  +2%/yr  +2%/yr  2.00  0.825 
^{(1) }Inflation rate for costs.
^{(2) }Exchange rate used to generate the benchmark reference prices in this table.
Performance Measures
The following table highlights annual performance ratios based on the evaluation of our petroleum and natural gas reserves prepared by McDaniels.
2015  2014  2013  Three Year Weighted Average  
Proved Developed Producing  
F&D ^{(1)}  $12.57  $21.84  $23.98  $18.19 
F&D recycle ratio ^{(2)}  2.9  2.1  1.8  2.4 
FD&A ^{(3)}  $29.46  $29.62  $27.30  $29.06 
FD&A recycle ratio ^{(2)}  1.2  1.5  1.6  1.4 
Production replacement ^{(4)}  236%  437%  319%  323% 
RLI (years) ^{(5)}  7.6  7.8  7.3  7.6 
Total Proved  
F&D ^{(1)}  $8.86  $19.03  $18.63  $14.45 
F&D recycle ratio ^{(2)}  4.1x  2.4x  2.3x  3.1x 
FD&A ^{(3)}  $23.11  $26.43  $23.36  $24.32 
FD&A recycle ratio ^{(2)}  1.6x  1.7x  1.8x  1.7x 
Production replacement ^{(4)}  400%  610%  566%  508% 
RLI (years) ^{(5)}  13.4  13.1  13.1  13.2 
Total Proved Plus Probable  
F&D ^{(1)}  $6.97  $13.80  $15.52  $11.14 
F&D recycle ratio ^{(2)}  5.2x  3.3x  2.7x  4.0x 
FD&A ^{(3)}  $18.27  $19.56  $18.31  $18.73 
FD&A recycle ratio ^{(2)}  2.0x  2.3x  2.3x  2.2x 
Production replacement ^{(4)}  499%  833%  723%  662% 
RLI (years) ^{(5)}  18.7  18.5  18.4  18.5 
^{(1) }F&D costs are calculated as the sum of development capital plus the change in FDC for the period divided by the change in reserves that are characterized as development for the period.
^{(2) }Recycle ratio is calculated as operating netback divided by F&D or FD&A costs. Operating netback is calculated as revenue (including realized hedging gains and losses) minus royalties, operating expenses, and transportation expenses. Our operating netback in 2015 was $36.11/boe.
^{(3) }FD&A costs are calculated as the sum of development capital plus acquisition capital plus the change in FDC for the period divided by the change in total reserves for the period.
^{(4) }Production replacement ratio is calculated as total reserve additions (including acquisitions net of dispositions) divided by annual production. Whitecap averaged 40,953 boe/d in 2015.
^{(5) }Reserve life index (“RLI”) is calculated as total Company share reserves divided by annual production.