BRIEF-Whitecap Resources buys oil assets for $595 mln, raises 2016 production forecast

Tue May 10, 2016 3:47pm EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

May 10 (Reuters) - Whitecap Resources Inc:

* Whitecap resources Inc. announces acquisition of high quality low decline oil assets, $470 million financing and increased 2016 guidance

* Says deal valued at $595 million

* Entered into an agreement to purchase premium oil assets in Western Canada

* Acquisition will be funded through a concurrent $470 million bought deal financing and Whitecap's existing credit facilities

* After giving effect to financing, acquisition is accretive on key measures including 11% on total proved plus probable reserves

* After giving effect to financing, acquisition is accretive 12% on 2017 funds flow and production per share

* Sees 2016 average production 45,300 boe/d

* Underwriters agreed to buy on a bought deal basis, 51.1 million subscription receipts at price of $9.20 per subscription receipt

* Pre-acquisition forecast for 2016 average production was 39,500 boe/d Source text for Eikon: Further company coverage: