Whitecap Resources to Buy Compass Petroleum; Announces Increased 2012 Guidance
Whitecap Resources Inc. (WCP.TO), which was just 8 cents below 20-day SMA $8.23 at yesterday's close, announced today 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.
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