CALGARY, Jan. 6, 2014 /CNW/ – Whitecap Resources Inc. (“Whitecap“) (TSX: WCP) is pleased to announce that Whitecap has completed the
previously announced acquisition of a private company (“PrivateCo”) pursuant to a plan of arrangement (the “Arrangement“) under the provisions of the Business Corporations Act (Alberta). Whitecap has acquired all of the issued and outstanding
common shares of PrivateCo through the issuance of 27,535,867 Whitecap
common shares and the assumption of PrivateCo’s working capital surplus
of approximately $2.8 million (the “Transaction”).

The Transaction increases and consolidates Whitecap’s exposure in the
western Saskatchewan Viking light oil resource play where we have
experienced significant operational success in 2012 and 2013. Whitecap
anticipates replicating and potentially improving upon these results in
2014. Based on our near-term and longer-term production and cash flow
per share forecast as well as our financial strength with a 2014 debt
to cash flow ratio of approximately 1.0 times, our monthly dividend has
been increased to a long-term sustainable level of $0.0567 per share
($0.68 per share annualized) starting with our January 2014 dividend
payable in February 2014.

Current production pro forma the acquisition is in excess of 25,500
boe/d (71% oil & NGL’s) which provides our shareholders with a base of
strong cash flow generation to start the year. Whitecap has kicked off
its 2014 capital program with a very active first quarter drilling
program of approximately 80 (70.0 net) wells in our four key operating
areas. The majority of these will be horizontal wells utilizing
multi-frac completion technology of which approximately 9.0 (7.7 net)
are anticipated to be extended reach horizontal (“ERH”) wells following
up on our three successful ERH wells in 2013. Our three ERH wells in
2013 achieved average IP(30) rates that were 2.1 times higher than our
standard length horizontal wells at 675 boe/d with DC&E costs of $3.6
million per well. We anticipate first quarter of 2014 exit production
of approximately 28,000 – 29,000 boe/d (72% oil & NGL’s).

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. In particular, this press release contains forward-looking
information relating our ability to replicate and potentially improve
upon our operational results in 2013, our near-term and longer-term
production and cash flow per share forecast, our financial strength and
a 2014 debt to cash flow ratio of 1.0x, sustainability of our
dividends, anticipated timing and results of our first quarter drilling
program and anticipated first quarter 2014 exit production rates.

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 capital.

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.

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.

SOURCE Whitecap Resources Inc.