January 6, 2014
WHITECAP RESOURCES INC. CLOSES VIKING LIGHT OIL ACQUISITION AND PROVIDES Q1 2014 OUTLOOK
CALGARY, ALBERTA – Whitecap Resources Inc. ("Whitecap") (TSX: WCP) is pleased to announce that Whitecap has completed the previously announced acquisition of a private company (“PrivateCo”) pursuant to a plan of arrangement (the "Arrangement") under the provisions of the Business Corporations Act (Alberta). Whitecap has acquired all of the issued and outstanding common shares of PrivateCo through the issuance of 27,535,867 Whitecap common shares and the assumption of PrivateCo’s working capital surplus of approximately $2.8 million (the “Transaction”).
The Transaction increases and consolidates Whitecap’s exposure in the western Saskatchewan Viking light oil resource play where we have experienced significant operational success in 2012 and 2013. Whitecap anticipates replicating and potentially improving upon these results in 2014. Based on our near-term and longer-term production and cash flow per share forecast as well as our financial strength with a 2014 debt to cash flow ratio of approximately 1.0 times, our monthly dividend has been increased to a long-term sustainable level of $0.0567 per share ($0.68 per share annualized) starting with our January 2014 dividend payable in February 2014.
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