whitecap resources inc. announces 27% increase to 2015 year end reserves
CALGARY, ALBERTA -Whitecap Resources Inc. ("Whitecap" or the "Company") (TSX: WCP) is pleased to present the results of our independent 2015 year end oil and gas reserves evaluation prepared by McDaniel & Associates Consultants Ltd. ("McDaniels").
Since inception, Whitecap has been focused on acquiring high quality assets and further developing them to maximize return on capital for shareholders. In 2015, we invested approximately $1 billion (unaudited) into the development and expansion of our existing core areas which has resulted in record production in the fourth quarter of 2015 of approximately 42,000 boe/d which is 400 boe/d higher than our initial forecast. The invested capital added 74.6 MMboe (84% oil and NGLs) of total proved plus probable reserves at a strong finding, development and acquisition ("FD&A") cost of $18.27/boe including changes in future development capital ("FDC"). We also achieved a record low finding and development ("F&D") cost of $6.97/boe including changes in FDC. The resulting recycle ratios are 2.0x on FD&A and 5.2x on F&D based on an operating netback of $36.11/boe for 2015. Reserves per share grew in all categories with total proved plus probable reserves of 278.9 MMboe (77% oil and NGLs) at year end providing a reserve life index of 18.7 years.
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 $13.61 per fully diluted share despite a 40% decrease in McDanielsâ€™ US$ WTI forecast in 2016.