March 18, 2015
WHITECAP RESOURCES INC. INCREASES VIKING LIGHT OIL EXPOSURE, ANNOUNCES $110 MILLION FINANCING AND PROVIDES INCREASED 2015 GUIDANCE
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
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 Beaumont Energy Inc. ("Beaumont"). Under the terms of the Arrangement Agreement, Beaumont shareholders will receive 0.40 of a Whitecap common share for each Beaumont share, with an option to take a portion of the consideration in cash up to a maximum aggregate amount of $103.4 million (the "Acquisition"). Whitecap will also be assuming the net debt of Beaumont, estimated at $70.5 million as at February 28, 2015, after accounting for proceeds from the exercise of dilutives and severance and transaction costs. Based on an agreed upon Whitecap share price of $14.05 the total consideration including bank debt is $587.5 million.
Beaumont is a concentrated, high netback, light oil-weighted Viking focused company with operations primarily in the Kerrobert area of west central Saskatchewan which immediately offsets Whitecapâ€™s lands and production in our Viking core area. The Acquisition has significant upside potential with large original-oil-in-place ("OOIP"), an active waterflood and low recovery factors to date. All of the Beaumont lands are de-risked with a large inventory of repeatable light oil development drilling opportunities and include strategic oil and gas facilities and infrastructure requiring limited capital requirements to process additional production volumes.
The Acquisition will also be partially funded with a concurrent $110 million bought deal equity financing (the "Financing").