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To: Johnny Canuck who wrote (48779)	11/21/2012 10:55:14 PM
From: Johnny Canuck	Read Replies (1) \| Respond to of 70324

Whitecap Resources surges on productive oil wells Stock rises by nine per cent after record production report released By Dan Healing, Calgary Herald October 4, 2012 Comment 0 •Story•Photos ( 1 ) Grant Fagerheim is chief executive of Whitecap Resources Inc., whose stock jumped Thursday on good production results. Photograph by: Ted Rhodes , Calgary HeraldCALGARY — Shares in Whitecap Resources Inc. leaped by as much as nine per cent Thursday after it announced record September production. In a news release after markets closed Wednesday, the acquisition-oriented light oil company announced it had achieved average output of 16,900 barrels of oil equivalent per day (71 per cent light oil and natural gas liquids) last month. “This represents an increase of 25 per cent over second quarter 2012 production and a 153 per cent increase over September 2011 production,” it boasted, adding the year-over-year increase was 45 per cent on a per share basis. The stock climbed to $8.01 on Thursday, up 66 cents, before falling back in the afternoon to $7.84. Whitecap was founded as a private venture headed by Grant Fagerheim in 2008 but has expanded rapidly as a public company, buying Compass Petroleum Ltd. and Midway Energy Ltd. for about $650 million in cash, shares and assumed debt earlier this year. In June, dismayed by lower oil prices, it chopped its capital spending budget for 2012 by about $45 million to $225 million. Whitecap said it drilled 41 horizontal oil wells (32.3 net) in the third quarter ended Sept. 30, all of which were successful, probing mainly the Viking formation at Dodsland, Sask., and the Alberta Cardium. It said it was able to cut well costs in both plays, citing as an example drilling three Cardium wells from a single pad and getting combined production of 1,170 boe/d (95 per cent oil and NGL) for the first two weeks. The company said its bank lines are being reviewed and are expected to be increased, freeing up cash for more “financial flexibility.” Analyst Grant Daunheimer of Dundee Securities praised Whitecap’s results in a note to investors. “We believe Whitecap has secured itself in a select group: a minority of producers that will meet and possibly exceed their annual production guidance,” he wrote, noting its exit guidance for 2012 was 17,000 boe/d. He attributed its success to “a slew of impressive well results” across its core areas. dhealing@calgaryherald.com Read more: calgaryherald.com