Reserve Information
2017 YEAR END RESERVES
Whitecap's 2017 year end reserves were evaluated by independent reserves evaluator McDaniel & Associates Consultants Ltd. (“McDaniel”) and GLJ Petroleum Consultants (“GLJ”) 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, 2017. Additional reserve information as required under NI 51101 is included in our Annual Information Form which has been filed on SEDAR.
2017 Reserve Highlights
Proved Developed Producing (“PDP”)
 Development capital spending replaced 126% of production at an F&D cost of $11.25/boe which generated a recycle ratio of 2.4 times.
 Increased PDP reserves by 49% or 31% per fully diluted share to 222.1 MMboe from 149.0 MMboe in 2016.
 Total PDP reserve additions of 94.0 MMboe replaced 449% of production at an FD&A cost of $21.68/boe, including FDC, which results in a recycle ratio of 1.3 times
 PDP reserves represent 64% of the TP reserves compared to 59% in the prior year.
Total Proved (“TP”)
 Development capital spending replaced 115% of production at an F&D cost of $13.37/boe, including changes in FDC, which generated a recycle ratio of 2.1 times.
 Increased TP reserves by 38% or 21% per fully diluted share to 347.0 MMboe from 251.8 MMboe in 2016.
 Total reserve additions of 116.2 MMboe replaced 555% of production at an FD&A cost of $21.53/boe, including FDC, which results in a recycle ratio of 1.3 times.
 TP reserves comprise 72% of TPP reserves compared to 71% in the prior year.
Total Proved Plus Probable (“TPP”)
 Development capital spending replaced 124% of production at an F&D cost of $12.66/boe, including changes in FDC, which generated a recycle ratio of 2.2 times.
 Increased TPP reserves by 36% or 19% per fully diluted share to 482.9 MMboe from 355.8 MMboe in 2016.
 Total TPP reserve additions of 148.0 MMboe replaced 707% of production at an FD&A cost of $17.05/boe, including FDC, which results in a recycle ratio of 1.6 times.
 Net asset value based on total proved plus probable (“TPP”) reserves discounted at 10% is $12.50 per fully diluted share. Net present value of reserves is adjusted for net debt of $1.3 billion and undeveloped land value of $70.1 million.
Summary of Reserves
As at December 31, 2017
Company Share Reserves  
Description  Oil (Mbbl)  Gas (MMcf)  NGL (Mbbl)  Total (Mboe) 
Proved producing  178,472  192,419  11,542  222,084 
Proved nonproducing  3,037  4,887  9  3,949 
Proved undeveloped  94,875  111,010  7,633  121,009 
Total proved  276,384  308,315  19,272  347,042 
Probable  104,297  135,352  9,021  135,877 
Total proved plus probable  380,681  443,556  28,293  482,919 
Summary of Before Tax Net Present Values
(Forecast Pricing)
As at December 31, 2017
Before Tax Net Present Value ($MM) ^{(1)}  
Discount Rate  
Description  0%  5%  10%  15%  20%  
Proved producing  5,665  4,159  3,257  2,682  2,290  
Proved nonproducing  129  90  67  53  44  
Undeveloped  3,185  2,010  1,349  950  692  
Total proved  8,979  6,259  4,674  3,686  3,025  
Probable  5,714  2,927  1,831  1,292  983  
Total proved plus probable  14,694  9,186  6,505  4,978  4,009  
Per fully diluted share  $34.72  $21.71  $15.37  $11.76  $9.47 
^{(1) }Includes abandonment and reclamation costs as defined in NI 51101.
Performance Measures
The following table highlights annual performance ratios based on the evaluation of our petroleum and natural gas reserves prepared by McDaniel and GJL.
2017  2016  2015  Three Year Weighted Average  
Proved Developed Producing  
F&D costs ^{(1)}  $11.25  $14.46  $12.57  $12.60 
F&D recycle ratio ^{(2)}  2.4x  1.8x  2.9x  2.3x 
FD&A costs ^{(3)}  $21.68  $15.78  $29.46  $21.74 
FD&A recycle ratio ^{(2)}  1.3x  1.7x  1.2x  1.4x 
Production replacement ^{(4)}  449%  313%  236%  353% 
RLI (years) ^{(5)}  10.2  8.1  7.4  8.8 
Total Proved  
F&D costs ^{(1)}  $13.37  $2.42  $8.86  $8.76 
F&D recycle ratio ^{(2)}  2.1x  10.9x  4.1x  5.4x 
FD&A costs ^{(3)}  $21.53  $13.32  $23.11  $19.31 
FD&A recycle ratio ^{(2)}  1.3x  2.0x  1.6x  1.6x 
Production replacement ^{(4)}  555%  409%  400%  470% 
RLI (years) ^{(5)}  15.9  13.6  13.0  14.4 
Total Proved Plus Probable  
F&D costs^{(1)}  $12.66  $2.34  $6.97  $7.95 
F&D recycle ratio ^{(2)}  2.2x  11.3x  5.2x  5.8x 
FD&A costs ^{(3)}  $17.05  $11.51  $18.27  $15.59 
FD&A recycle ratio ^{(2)}  1.6x  2.3x  2.0x  1.9x 
Production replacement ^{(4)}  707%  559%  499%  608% 
RLI (years) ^{(5)}  22.2  19.3  18.2  20.3 
^{(1) }F&D costs are calculated as the sum of field capital of $330.1 million plus the change in FDC for the period of $32.5 million (PDP), $8.1 million (TP) and $1.4 million (TPP), 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 2017 was $27.47/boe.
^{(3) }FD&A costs are calculated as the sum of field capital of $330.1 million plus acquisition capital of $944.3 million plus the change in FDC for the period of $764.0 million (PDP), $1,226.3 million (TP) and $1,250.0 million (TPP), divided by the change in total reserves, other than from production, for the period.
^{(4) }Production replacement ratio is calculated as total reserve additions (including acquisitions net of dispositions) divided by annual production. Whitecap's production averaged 57,450 boe/d in 2017.
^{(5) }Reserve life index (“RLI”) is calculated as total Company share reserves divided by the annualized fourther quarter actual production of 59,707 boe/d.
Our 2017 year end reserves were evaluated by independent reserves evaluator McDaniel & Associates Consultants Ltd. (“McDaniel”) and GLJ Petroleum Consultants (“GLJ”) 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, 2017. The reserves evaluation was based on McDaniel’s forecast pricing and foreign exchange rates at January 1, 2018 which is available on their website at www.mcdan.com.
Reserves included are Company share reserves which are the Company’s total working interest reserves before the deduction of any royalties and include any royalty interests payable to the Company. Additional reserve information as required under NI 51101 will be included in our Annual Information Form which will be filed on SEDAR on or before March 31, 2017. The numbers in the tables below may not add due to rounding.
Summary of Reserves
Whitecap was once again able to deliver both absolute and per share reserves growth in all categories in 2017. Compared to the prior year, PDP, TP and TPP reserves increased 49%, 38% and 36% or 31%, 21% and 19% per fully diluted share, respectively.
Reserves
As at December 31, 2017

Company Share Reserves 

Description 
Oil (Mbbl) 
Gas (MMcf) 
NGL (Mbbl) 
Total (Mboe) 
Proved producing 
178,472 
192,419 
11,542 
222,084 
Proved nonproducing 
3,037 
4,887 
98 
3,949 
Proved undeveloped 
94,875 
111,010 
7,633 
121,009 
Total proved 
276,384 
308,315 
19,272 
347,042 
Probable 
104,297 
135,352 
9,021 
135,877 
Total proved plus probable 
380,681 
443,667 
28,293 
482,919 
Net Present Values
Before tax net present value discounted 10% per share increased 8% to $15.37 per share on TPP reserves and 6% to $11.04 per fully diluted share on TP reserves despite a 6% decrease to the 5 year average Edmonton light price forecast and a 16% decrease to the 5 year average AECO price forecast.
Summary of Before Tax Net Present Values
(Forecast Pricing)
As at December 31, 2017

Before Tax Net Present Value ($MM) ^{(1)} 


Discount Rate 

Description 
0% 
5% 
10% 
15% 
20% 

Proved producing 

5,665 

4,159 

3,257 

2,682 

2,290 
Proved nonproducing 

129 

90 

67 

53 

44 
Undeveloped 

3,185 

2,010 

1,349 

950 

692 
Total proved 

8,979 

6,259 

4,674 

3,686 

3,025 
Probable 

5,714 

2,927 

1,831 

1,292 

983 
Total proved plus probable 

14,694 

9,186 

6,505 

4,978 

4,009 
Per fully diluted share 

$34.72 

$21.71 

$15.37 

$11.76 

$9.47 

Includes abandonment and reclamation costs as defined in NI 51101.
Future Development Costs
FDC reflects the best estimate of the capital cost to produce reserves. FDC associated with our TPP reserves at year end 2017 is $2.2 billion and includes Polymer and CO_{2} purchases for our southwest and southeast Saskatchewan enhanced oil recovery projects. TPP FDC for these two items is $680 million undiscounted ($301 million discounted 10%) and TP FDC is $668 million undiscounted ($301 million undiscounted 10%).
Also included in FDC are 1,297 (1,052.9 net) booked locations of which 455 (391.9 net) are ERH. Booked locations represent 47% of Whitecap’s total inventory at December 31, 2017 of 2,897 (2,251.7 net) locations of which 850 (711.7 net) are ERH wells.
($000s) 
Total Proved 
Total Proved plus Probable 
2018 
546,414 
551,494 
2019 
565,098 
594,083 
2020 
469,374 
556,887 
2021 
349,145 
397,156 
2022 
203,843 
233,532 
Remainder 
758,264 
817,139 
Total FDC, Undiscounted 
2,892,138 
3,150,290 
Total FDC, Discounted at 10% 
1,982,988 
2,155,262 
Performance Measures
Highlights to our 2017 performance measures include very strong F&D costs as well as F&D recycle ratios above 2 times in each of the PDP, TP and TPP reserve categories. FD&A costs for the year were consistent with the 3 year average and reflect the long life, light oil, high netback acquisition of the Weyburn assets. 2016 had unusually low F&D and associated FD&A due to a significant correction in services costs which resulted in a onetime downward revision to FDC.
We were also able to drive record production replacement of produced reserves for PDP at 449%, TP at 555% and TPP at 707%. These exceptionally strong ratios on our high quality assets have extended our reserve life index to 10.2 years on PDP reserves, 15.9 years on TP reserves, and 22.2 years on TPP reserves.
The following table highlights annual performance ratios based on the evaluation of our petroleum and natural gas reserves prepared by McDaniel and GLJ:

2017 
2016 
2015 
Three Year Weighted Average 
Proved Developed Producing 




F&D costs ^{(1)} 
$11.25 
$14.46 
$12.57 
$12.60 
F&D recycle ratio ^{(2)} 
2.4x 
1.8x 
2.9x 
2.3x 
FD&A costs ^{(3)} 
$21.68 
$15.78 
$29.46 
$21.74 
FD&A recycle ratio ^{(2)} 
1.3x 
1.7x 
1.2x 
1.4x 
Production replacement ^{(4)} 
449% 
313% 
236% 
353% 
RLI (years) ^{(5)} 
10.2 
8.1 
7.4 
8.8 
Total Proved 




F&D costs ^{(1)} 
$13.37 
$2.42 
$8.86 
$8.76 
F&D recycle ratio ^{(2)} 
2.1x 
10.9x 
4.1x 
5.4x 
FD&A costs ^{(3)} 
$21.53 
$13.32 
$23.11 
$19.31 
FD&A recycle ratio ^{(2)} 
1.3x 
2.0x 
1.6x 
1.6x 
Production replacement ^{(4)} 
555% 
409% 
400% 
470% 
RLI (years) ^{(5)} 
15.9 
13.6 
13.0 
14.4 
Total Proved Plus Probable 




F&D costs ^{(1)} 
$12.66 
$2.34 
$6.97 
$7.95 
F&D recycle ratio ^{(2)} 
2.2x 
11.3x 
5.2x 
5.8x 
FD&A costs ^{(3)} 
$17.05 
$11.51 
$18.27 
$15.59 
FD&A recycle ratio ^{(2)} 
1.6x 
2.3x 
2.0x 
1.9x 
Production replacement ^{(4)} 
707% 
559% 
499% 
608% 
RLI (years) ^{(5)} 
22.2 
19.3 
18.2 
20.3 

F&D costs are calculated as the sum of field capital of $330.1 million plus the change in FDC for the period of $32.5 million (PDP), $8.1 million (TP) and $1.4 million (TPP), divided by the change in reserves that are characterized as development for the period.

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 2017 was $27.47/boe.

FD&A costs are calculated as the sum of field capital of $330.1 million plus acquisition capital of $944.3 million plus the change in FDC for the period of $764.0 million (PDP), $1,226.3 million (TP) and $1,250.0 million (TPP), divided by the change in total reserves, other than from production, for the period.

Production replacement ratio is calculated as total reserve additions (including acquisitions net of dispositions) divided by annual production. Whitecap’s production averaged 57,450 boe/d in 2017.

Reserve life index (“RLI”) is calculated as total Company share reserves divided by the annualized fourth quarter actual production of 59,707 boe/d.