whitecap resources inc. announces 66% increase to 2014 year end reserves and provides 2015 revised guidance
January 27, 2015
WHITECAP RESOURCES INC. ANNOUNCES 66% INCREASE TO 2014 YEAR END RESERVES AND PROVIDES 2015 REVISED GUIDANCE
CALGARY, ALBERTA - Whitecap Resources Inc. ("Whitecap" or the "Company") (TSX: WCP) is pleased to report record production in the fourth quarter of 2014 of 37,600 boe/d (74% oil and NGLs) and a 2014 exit rate of 37,000 boe/d. Average production volumes in the fourth quarter were 850 boe/d higher than our initial forecast of 36,750 boe/d, providing a strong and stable base production platform heading into 2015.
We are also pleased to present the results of our 2014 year end oil and gas reserves evaluation. Since inception we have focused on organic capital execution enhanced by an accretive and targeted acquisition strategy. This has resulted in consistent proved plus probable reserves per share growth for our shareholders at an average three year FD&A cost of $19.57/boe (including FDC) and an average recycle ratio of 2.2 times.
The financial and operational information below is based on estimates and are unaudited.
2014 RESERVE HIGHLIGHTS
- Increased proved plus probable ("2P") reserves by 66% to 219.3 MMboe (75% oil and NGLs) and proved ("1P") reserves by 64% to 155.0 MMboe (76% oil and NGLs).
- On a fully diluted per share basis, increased 2P reserves by 14% and 1P reserves by 13%.
- Achieved finding and development ("F&D") costs of $13.79 per 2P boe, including changes in future development costs ("FDC"), which results in a recycle ratio of 3.3 times.
- Achieved finding, development and acquisition ("FD&A") costs of $19.56 per 2P boe, including FDC, which results in a recycle ratio of 2.3 times.
- Increased the net present value discounted at 10% ("NPV10") of 2P reserves by 10% to $14.60 per fully diluted share and NPV10 of proved reserves by 3% to $10.87 per fully diluted share.
- Proved developed producing reserves represent 60% of 1P reserves and 42% of 2P reserves.
- 1P reserves comprise 71% of 2P reserves on a reserve basis and 74% on a NPV10 basis.
- Our organic drilling and optimization program resulted in 2P reserve additions replacing 235% of production in the year and 1P reserve additions replacing 173% of production, excluding reserves added through acquisitions.
- Including reserves added through acquisitions, 2P reserve additions replaced 833% of production in the year and 1P reserve additions replaced 610% of production.