November 20, 2013
WHITECAP RESOURCES INC. INCREASES VIKING LIGHT OIL EXPOSURE, ANNOUNCES DIVIDEND INCREASE AND PROVIDES INCREASED 2014 GUIDANCE
CALGARY, ALBERTA – Whitecap Resources Inc. (“Whitecap” or the “Company”) (TSX: WCP) is pleased to announce that it has entered into an arrangement agreement (the “Arrangement Agreement”) providing for the acquisition by Whitecap of all the issued and outstanding common shares of a private company (“PrivateCo”) for total consideration of 27,535,867 Whitecap common shares (the “Transaction”). Whitecap will also be assuming the working capital surplus of PrivateCo, estimated at $3.0 million, after accounting for severance and transaction costs associated with the Transaction, as at December 31, 2013. Based on an agreed upon price of $12.00 per Whitecap share, the total consideration net of the working capital surplus is $327.4 million.
PrivateCo is a light oil-weighted energy company with operations primarily in the Kindersley (Whiteside) area of west central Saskatchewan which immediately offsets Whitecap’s lands and Viking production in Kindersley (Lucky Hills). The Transaction includes a significant inventory of low-risk light oil development opportunities with quick payouts along with strategically operated oil and gas facilities and infrastructure.
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