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UPDATE: Whitecap Resources Off 6%; Announces Compass Petroleum Acquisition, Increased 2012 Guidance; Compass Up 22%

Whitecap Resources Inc. (WCP.TO) is now down by almost 6% at $7.70 compared to yesterday's $8.15 close, dropping further from the $8.01 opening price, following its earlier announcement that it has entered into an arrangement agreement to acquire all the issued and outstanding common shares of Compass Petroleum Ltd. (CPO.V).

Under the terms of the transaction, Compass shareholders will receive either 0.205 of a Whitecap common share or $1.60 in cash, subject to an aggregate cash maximum of $20 million and a maximum distribution of approximately 10.9 million Whitecap common shares.

Whitecap also announced today its revised 2012 guidance that has cash flow increasing 23% to $179 million, average production increasing 20% to 11,000 boe/d, exit production increasing 21% to 12,200 boe/d and capital spending increasing 23% to $185 million from the previous guidance provided.

CPO shares are now higher by 22% at $1.54 compared to yesterday's $1.26 close with more than 7.1 million shares traded. WCP shares are also heavily traded today with more than 1.4 million shares that have already changed hands.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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