Exploration & Production | Operational Updates

Whitecap Sees Good Results From ERH Wells in Dunvegan

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Operational Update

Whitecap achieved 2013 annual production of 19,769 boe/d (69% oil and NGLs) which exceeded our market guidance of 19,650 boe/d. Total capital expenditures including capitalized G&A were $190 million compared to market guidance of $188 million.

In 2013, we drilled a total of 100 (73.3 net) wells all targeting oil with a 100% success rate, including 50 (37.1 net) horizontal Viking oil wells in western central Saskatchewan , 25 (14.3 net) horizontal Cardium oil wells at Garrington, 16 (14.5 net) horizontal Cardium wells in the greater Pembina area, 5 (4.4 net) horizontal Dunvegan wells in the Deep Basin area of northwest Alberta and 2 (1.0 net) horizontal Montney oil wells at Valhalla . We have an extensive inventory currently of 2,103 low-risk development drilling opportunities providing Whitecap and our shareholders with a solid platform for long-term sustainable dividends and per share growth.

Our 2014 capital program has fully commenced with nine drilling rigs currently operating; four in west central Saskatchewan drilling the Viking formation, three in west central Alberta drilling the Cardium formation and two in northwest Alberta targeting the Dunvegan and Montney formations.

Included in the first quarter drilling program are 5 horizontal Dunvegan oil wells. The Dunvegan is an emerging core play for Whitecap where we currently have six wells producing over 1,500 boe/d on a combined basis. To date our average IP (30) rate across the Dunvegan play is 401 boe/d (87% oil and NGLs), including our initial Elmworth wells which had IP rates curtailed by third party restrictions.

In 2014 we will expand the application of extended reach horizontal wells across our core areas, building on the successful results achieved in 2013 where we were able to experience a greater than 20% improvement in capital efficiencies compared to the standard length horizontal wells. This improvement in capital efficiency provides strong well economics with accelerated payout of capital employed to less than one year. We have nine ERH wells planned for the first quarter, including four in the Viking formation, one in Garrington and three in Pembina targeting the Cardium and one in Simonette targeting the Dunvegan . We have 18 to 24 ERH wells in total planned for 2014.