Whitecap Resources Significantly Increases its Credit Facilities
Whitecap Resources Inc. (WCP.TO) announced a significant increase to its syndicated credit facilities as a result of strong reserve additions.
Its banking syndicate has, based on their interim review, increased our borrowing base from the previous $145 million to $190 million, a 31% increase. The 2011 year-end borrowing base review is scheduled for May 31, 2012. The increase continues to provide Whitecap with significant financial flexibility for the remainder of 2011 and into 2012.
"Recent drilling results in the Pembina Cardium and Valhalla Montney have been above both Whitecap's and the independent reserve evaluator's type curves. Once these results are fully incorporated the associated reserves assignment per well will be increased accordingly. As such we anticipate a positive independent 2011 year-end reserves evaluation."
On its outlook, the company said it remains confident in its business plan both in the short term and longer term. "The current economic environment remains volatile due to the European sovereign debt issues, tenuous US economy, and their impact on both equities and commodity prices. We have executed a successful fourth quarter hedging strategy to protect our cashflow by locking in 45% of our forecast production (7,800 boe/d) at an average WTI floor price of C$97.71 and an average AECO price of C$4.13/mcf. Our capital program for the fourth quarter remains flexible to ensure we maintain our balance sheet strength."
Our current base production is 7,400 boe/d (64% oil and NGLs), and we remain on track to meet our exit production guidance of 8,200 to 8,300 boe/d and look forward to updating our shareholders with our results for the balance of the year.
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