Whitecap Resources has completed its previously announced acquisition of PrivateCo pursuant to a plan of arrangement under the provisions of the Business Corporations Act (Alberta).
The company has purchased all of the issued and outstanding common shares of PrivateCo through the issuance of its 27,535,867 common shares.
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According to Whitecap, the deal will increase and consolidate the company’s exposure in the western Saskatchewan Viking light oil resource play where it experienced operational success in 2012 and 2013 considerably.
Whitecap expects to be replicating and potentially improving upon receiving the results in 2014.
The company’s monthly dividend has been increased to a long-term sustainable level of $0.0567 per share starting with its January 2014 dividend payable in February 2014, based on its near-term and longer-term production and cash flow per share forecast as well as its financial strength.
During this year, the company started its capital programme with a first quarter drilling programme of about 80 wells in its four key operating areas. The majority will be horizontal wells that use multi-frac completion technology.
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By GlobalDataWith 9.0 (7.7 net) expected to be extended reach horizontal (ERH) wells following up on the company’s three successful ERH wells in 2013.
The three wells achieved average IP (30) rates that were 2.1 times higher compared with the company’s standard length horizontal wells at 675 boe/d with DC&E costs of $3.6m per well.
Whitecap expects first quarter of 2014 exit production of about 28,000boe/d-29,000boe/d.
