Whitecap Resources Acquires Cardium Light Oil Acquisition For $90 Million

Acquired Cardium light oil property and a working interest consolidation of its Eagle Lake Viking unit.

Whitecap Resources Inc. (TSX:WCP) has completed the acquisition of a Cardium light oil property and a working interest consolidation of its Eagle Lake Viking unit for total consideration of $90 million, the company announced Oct. 28.

The Cardium acquisition adds about 920 barrels of oil per day (BOE/d), 70% Oil and NGLs, of high netback, operated production with a base production decline of 22%. It includes strategic facilities at Whitecap's existing Ferrier and Garrington areas.

The Viking acquisition adds about100 BOE/d, 95% oil and NGLs, of high netback production with a low base production decline of 20% in Whitecap's operated Eagle Lake Viking unit, increasing Whitecap’s working interest to 88.1%.

In connection with the Acquisitions, Whitecap also announces a bought deal equity financing of approximately $65 million.

Acquiring assets in its core areas and increasing its working interest in existing properties allows the company to remain highly focused and continues to strengthen the sustainability of our dividend-growth strategy.

The majority of acquired production is Cardium light oil with associated natural gas. The Cardium acquisition includes a gathering system, multiple oil satellites, gas conservation and a main oil battery. Over 90% of the producing horizontals have been on production for more than two years which results in an attractive 22% base production decline profile. Whitecap has made significant technology gains in the Garrington play using optimized stimulations and extended reach horizontal wellbores that will be applied to the acquired assets.