Whitecap Resources Inc. has entered into an agreement to purchase certain strategic light oil assets located predominantly in its core Valhalla and Garrington operated areas of Alberta for total consideration of $173.6 million (the "Acquisition"). The Acquisition adds 2,900 boe/d (56 percent oil and NGLs) of high netback, low base decline production (16 percent current decline rate) in areas where Whitecap already operates 96 percent of the production.

The Acquisition will be funded through a concurrent $170 million bought deal financing (the "Financing") and Whitecap's existing credit facilities.

The light oil Acquisition continues to solidify and strengthen Whitecap's long-term sustainability while maintaining focus on our current core areas. The Acquisition consists of increasing our working interest in existing operated oil pools and associated infrastructure in areas where we have significant technical expertise and have provided our shareholders with a high return on investment.

Tags: Whitecap Resources