Whitecap Resources Inc. announces 127% increase to 2012 year-end reserves and provides operational update

Whitecap Resources Inc. announces 127% increase to 2012 year-end reserves and 
provides operational update 
CALGARY, Jan. 30, 2013 /CNW/ - Whitecap Resources Inc. ("Whitecap" or the 
"Company") (TSX: WCP) is pleased to announce the results from its 2012 
year-end oil and gas reserves evaluation and provide shareholders with an 
operational update. 
Whitecap's year-end 2012 reserves were evaluated by independent reserves 
evaluator McDaniel & Associates Consultants Ltd. ("McDaniels"). The evaluation 
of all of Whitecap's oil and gas properties was done in accordance with the 
definitions, standards and procedures contained in the Canadian Oil and Gas 
Evaluation Handbook ("COGE Handbook") and National Instrument 51-101 - 
Standards of Disclosure for Oil and Gas Activities ("NI 51-101"). Additional 
reserve information as required under NI 51-101 will be included in the 
Company's Annual Information Form which will be filed on SEDAR by March 22, 
Highlights of the 2012 reserve report include: 

    --  Achieved finding and development ("F&D") costs of $18.07 per
        proved plus probable boe, including changes in future
        development costs, which results in a recycle ratio of 2.5
    --  Achieved finding, development and acquisition ("FD&A") costs of
        $20.94 per proved plus probable boe, including changes in
        future development costs, which results in a recycle ratio of
        2.2 times.
    --  Increased proved plus probable reserves by 127% to 87.5 MMboe
        (69% oil and NGLs) and proved reserves by 138% to 60.9 MMboe
        (70% oil and NGLs).
    --  On a per share, fully diluted basis, increased proved plus
        probable reserves by 30% and proved reserves by 36%.
    --  Increased the proved developed producing component of total
        proved reserves from 59% to 61% year over year. Total proved
        reserves now represent 70% of total proved plus probable
        reserves compared to 66% in the prior year.
    --  Proved plus probable reserve additions replaced 1,054% of
        production in the year and proved reserve additions replaced
        788% of production.
    --  The 2012 year-end reserves evaluation includes 289 undeveloped
        drilling locations of which 91% have proved reserves assigned.
    --  Maintained a long reserve life index of 14.0 years for proved
        plus probable reserves and 9.8 years for proved reserves, based
        on fourth quarter 2012 average production of 17,000 boe/d.

Summary of Reserves
(Forecast Pricing)

As at December 31, 2012(
                                      Gross company reserves((2))

Description              Oil (Mbbl) Gas (MMcf) NGL (Mbbl) Total (Mboe)

Proved producing             21,954     72,265      3,182       37,181

Proved non-producing            290      4,278         15        1,017

Undeveloped                  15,056     34,962      1,845       22,729

Total proved((3))            37,300    111,505      5,043       60,927

Probable                     15,702     52,273      2,159       26,573

Total proved plus
probable((3))                53,002    163,778      7,201       87,500

((1))  Based on McDaniels' January 1, 2013 forecast prices.

((2))  Gross Company reserves are the Company's total working interest
       before the deduction of any royalties and without including any
       royalty interest
       of the Company.

((3))  Numbers may not add due to rounding.

Summary of Before Tax Net Present Values
(Forecast Pricing)

As at December 31, 2012((1))     
                                  Before Tax Net Present Value ($MM)
                                                  Discount Rate

Description                          0%      5%     10%     15%   20%

Proved producing                $ 1,408 $ 1,030 $   817 $   682 $ 590

Proved non-producing                 17      13      11       9     8

Undeveloped                         619     376     240     157   101

Total proved                    $ 2,043 $ 1,419 $ 1,068 $   848 $ 700

Probable((2))                     1,150     562     335     226   166

Total proved plus probable((2)) $ 3,194 $ 1,980 $ 1,402 $ 1,074 $ 865

((1))   Based on McDaniels' January 1, 2013 forecast prices.

((2))   Numbers may not add due to rounding.

Capital Program Efficiency

Based on the evaluation of our petroleum and natural gas reserves prepared in 
accordance with NI 51-101 by our independent reserve evaluator, McDaniels, the 
historical efficiency of our capital programs is summarized as follows:
                                                     Three Year
                                      2012    2011      Average

Excluding Future Development Costs                             

Proved ($/boe)                                                 
      F&D costs((1))               $ 19.03 $ 14.59 $      18.65
      FD&A costs((2))              $ 22.04 $ 20.77 $      21.70

Proved plus probable ($/boe)                                   
      F&D costs((1))               $ 14.87 $ 10.74 $      15.06
      FD&A costs((2))              $ 16.49 $ 14.97 $      15.87

Recycle ratio((3))                                             
      Proved plus probable            2.72    3.27          2.6

Including Future Development Costs                             

Proved ($/boe)                                                 
      F&D costs((1))               $ 22.74 $ 24.13 $      25.59
      FD&A costs((2))              $ 27.78 $ 27.90 $      28.27

Proved plus probable ($/boe)                                   
      F&D costs((1))               $ 18.07 $ 17.83 $      21.90
      FD&A costs((2))              $ 20.94 $ 20.80 $      21.36

Recycle ratio((3))                                             
      Proved plus probable            2.15    2.35          1.9

Q4 Operating netback per boe((3))  $ 44.92 $ 48.93 $      40.49

((1))   The aggregate of the exploration and development costs incurred
        in the
        most recent financial year and change during that year in
        estimated future
        development costs generally will not reflect total finding and
        costs related to reserve additions for that year.

((2))   The capital expenditures include the announced purchase price
        corporate acquisitions rather than the amounts allocated to
        plant and equipment for accounting purposes. The capital
        also exclude capitalized administration costs and transaction

((3))   Recycle ratio is calculated as operating netback divided by
        FD&A costs
        (proved plus probable). Operating netback is calculated as
        (including realized hedging gains and losses) minus royalties,
        and operating expenses and transportation expenses.

In addition to our 2012 year-end reserves evaluation noted above, McDaniels is 
also conducting an evaluation of our economic contingent resources, the 
results of which will be released later in the first quarter 2013.


In the fourth quarter of 2012, Whitecap achieved record production of 
approximately 17,000 boe/d, a 118% increase on an absolute basis and a 25% 
increase per share, fully diluted, over our fourth quarter 2011 average 
production of 7,806 boe/d. The production increase is 8% over our third 
quarter 2012 average production of 15,795 boe/d. Our 2012 average annual 
production is approximately 14,000 boe/d, a 148% increase on an absolute basis 
and a 40% increase per share, fully diluted, over our 2011 average annual 
production of 5,657 boe/d.

We drilled a total of 114 (91.0 net) wells all targeting oil with a 100% 
success rate in 2012 of which 30 (26.2 net) wells were drilled in the fourth 
quarter of 2012. Our extensive inventory of low risk development drilling 
opportunities, predictable and stable production base and associated hedging 
program will allow us to pay meaningful and consistent dividends as well as 
continue to focus on per share growth in production, reserves and cash flow.

In West Central Saskatchewan, we drilled 10 (10.0 net) wells in the fourth 
quarter of 2012 and have plans to drill an additional 19 (17.4 net) in the 
first quarter of 2013 all targeting Viking light oil. We continue to achieve 
production results that are at or above our type curves. Our drilling and 
completion costs continue to be optimized with our last six wells averaging 
$772,000 per well to drill and complete, approximately 6% lower than our type 
economic assumptions.

In the Garrington area of West Central Alberta, Whitecap drilled 5 (5.0 net) 
oil wells in the fourth quarter of 2012 and anticipates drilling an additional 
10 (5.2 net) wells in the first quarter of 2013. As a result of optimizing our 
completion methods, we have recently experienced better than anticipated early 
production rates from our Cardium horizontal wells. Our last 7 wells have 
averaged 390 boe/d (92% oil and NGLs) over their first 30 days of production 
which is a 43% improvement on our current type curve.

Whitecap drilled 7 (4.9 net) Cardium oil wells in the greater Pembina area of 
West Central Alberta in the fourth quarter of 2012 and plans to drill an 
additional 6 (6.0 net) wells in the first quarter of 2013. We continue to 
optimize our drilling and completion methods and are achieving production 
results that are exceeding our current type curve. The last 10 wells have an 
average IP(30) rate of 301 boe/d (94% oil and NGLs) which is 39% higher than 
our current type curve.

Whitecap continues to advance and monitor the progress of the waterflood 
development in its Valhalla North Montney oil play in the Peace River Arch 
area of Alberta since increasing the water injection from 1,600 boe/d to 5,600 
boe/d in the second quarter of 2012. Production increases as a result of 
increased water injection are expected to be realized in the next 6 - 24 
months. In the fourth quarter of 2012, Whitecap drilled 1 (0.5 net) Montney 
oil well and 1 (1.0 net) horizontal Dunvegan oil well and anticipates drilling 
an additional 2 (1.0 net) wells in the first quarter of 2013. We plan to 
expand the Montney waterflood area to the west in the second and third 
quarters of 2013.

In the Fosterton area of southwest Saskatchewan, we drilled 5 (4.7 net) 
development oil wells and have increased our current production to 
approximately 700 boe/d (90% oil) from the third quarter average production 
volume of 300 boe/d. These results will be monitored with the potential to 
increase capital allocated to the area in 2013.

Whitecap Resources Inc. is a dividend paying, oil-weighted company focused on 
providing sustainable monthly dividends to its shareholders and per share 
growth through a combination of accretive oil-based acquisitions and organic 
growth on existing and acquired assets. For further information about Whitecap 
please visit our website at www.wcap.ca.

Note Regarding Forward-Looking Statements and Other Advisories

This press release contains forward-looking statements and forward-looking 
information (collectively "forward-looking information") within the meaning of 
applicable securities laws relating to the Company's plans and other aspects 
of our anticipated future operations, management focus, strategies, financial, 
operating and production results and business opportunities. Forward-looking 
information typically uses words such as "anticipate", "believe", "project", 
"expect", "goal", "plan", "intend" or similar words suggesting future 
outcomes, statements that actions, events or conditions "may", "would", 
"could" or "will" be taken or occur in the future, including statements about 
our strategy, plans and focus, plans to complete a resource evaluation, timing 
of filing the Company's annual information form, forecast annual per share 
growth, dividend policy, planned capital expenditures, expected future 
production and product mix, and drilling, development and completion plans.

The forward-looking information is based on certain key expectations and 
assumptions made by our management, including expectations and assumptions 
concerning prevailing commodity prices, exchange rates, interest rates, 
applicable royalty rates and tax laws; future production rates and estimates 
of operating costs; performance of existing and future wells; reserve and 
resource volumes; anticipated timing and results of capital expenditures; the 
success obtained in drilling new wells; the sufficiency of budgeted capital 
expenditures in carrying out planned activities; the timing, location and 
extent of future drilling operations; the state of the economy and the 
exploration and production business; results of operations; performance; 
business prospects and opportunities; the availability and cost of financing, 
labour and services; the impact of increasing competition; ability to 
efficiently integrate assets and employees acquired through acquisitions, 
ability to market oil and natural gas successfully and our ability to access 

Although we believe that the expectations and assumptions on which such 
forward-looking information is based are reasonable, undue reliance should not 
be placed on the forward-looking information because Whitecap can give no 
assurance that they will prove to be correct. Since forward-looking 
information addresses future events and conditions, by its very nature they 
involve inherent risks and uncertainties. Our actual results, performance or 
achievement could differ materially from those expressed in, or implied by, 
the forward-looking information and, accordingly, no assurance can be given 
that any of the events anticipated by the forward-looking information will 
transpire or occur, or if any of them do so, what benefits that we will derive 
therefrom. Management has included the above summary of assumptions and risks 
related to forward-looking information provided in this press release in order 
to provide securityholders with a more complete perspective on our future 
operations and such information may not be appropriate for other purposes.

It should not be assumed that the present worth of estimated future cash flow 
presented in the tables above represents the fair market value of the 
reserves. There is no assurance that the forecast prices and costs assumptions 
will be attained and variances could be material. The recovery and reserve 
estimates of Whitecap's crude oil, natural gas liquids and natural gas 
reserves provided herein are estimates only and there is no guarantee that the 
estimated reserves will be recovered. Actual crude oil, natural gas and 
natural gas liquids reserves may be greater than or less than the estimates 
provided herein.

All future net revenues are stated prior to provision for interest, general 
and administrative expenses and after deduction of royalties, operating costs 
and estimated future capital expenditures. Future net revenues have been 
presented on a before tax basis. Estimated values of future net revenue 
disclosed herein do not represent fair market value.

Finding and development costs both including and excluding acquisitions and 
dispositions have been presented above. While NI 51-101 requires that the 
effects of acquisitions and dispositions be excluded, FD&A costs have been 
presented because acquisitions and dispositions can have a significant impact 
on the Company's ongoing reserve replacement costs and excluding these amounts 
could result in an inaccurate portrayal of the Company's cost structure.

Readers are cautioned that the foregoing lists of factors are not exhaustive. 
Additional information on these and other factors that could affect our 
operations or financial results are included in reports on file with 
applicable securities regulatory authorities and may be accessed through the 
SEDAR website (www.sedar.com).

These forward-looking statements are made as of the date of this press release 
and we disclaim any intent or obligation to update publicly any 
forward-looking information, whether as a result of new information, future 
events or results or otherwise, other than as required by applicable 
securities laws.

Non-GAAP Measures

This press release contains the term "operating netbacks" which does not have 
a standardized meaning prescribed by GAAP and therefore may not be comparable 
with the calculation of similar measures by other companies. Whitecap uses 
operating netbacks to analyze financial and operating performance. Whitecap 
believes these benchmarks are key measures of profitability and overall 
sustainability for the Company. These terms are commonly used in the oil and 
gas industry. Operating netbacks are not intended to represent operating 
profits nor should they be viewed as an alternative to funds from operations 
provided by operating activities, net earnings or other measures of financial 
performance calculated in accordance with GAAP. Operating netbacks are 
determined by deducting royalties, production expenses and transportation and 
selling expenses from oil and gas revenue.

"Boe" means barrel of oil equivalent on the basis of 6 mcf of natural gas to 1 
bbl of oil. Boe's may be misleading, particularly if used in isolation. A boe 
conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion 
method primarily applicable at the burner tip and does not represent a value 
equivalency at the wellhead. In addition, given that the value ratio based on 
the current price of crude oil as compared to natural gas is significantly 
different from the energy equivalency of 6: 1, utilizing a conversion on a 6:1 
basis may be misleading as an indication of value.

Grant Fagerheim, President & CEO or Thanh Kang, VP Finance & CFO

Whitecap Resources Inc. 500, 222 - 3 Avenue SW Calgary, AB T2P 0B4

Main Phone (403) 266-0767 Fax (403) 266-6975

SOURCE: Whitecap Resources Inc.

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CO: Whitecap Resources Inc.
ST: Alberta

-0- Jan/30/2013 22:08 GMT

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