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Press release from CNW Group

Whitecap Resources Inc. significantly increases its credit facilities

Wednesday, October 12, 2011

Whitecap Resources Inc. significantly increases its credit facilities19:38 EDT Wednesday, October 12, 2011CALGARY, Oct. 12, 2011 /CNW/ - Whitecap Resources Inc. ("Whitecap", "we", "us", "our" or the "Company") (TSX: WCP) is pleased to announce a significant increase to our syndicated credit facilities as a result of strong reserve additions.Credit FacilitiesAs a result of our continued operational success and the related production and reserve increases we are pleased to announce that our banking syndicate, led by National Bank Financial and including, the Bank of Nova Scotia, ATB Financial and Canadian Imperial Bank of Commerce has, based on their interim review, increased our borrowing base from the previous $145 million to $190 million, a 31% increase. The 2011 year-end borrowing base review is scheduled for May 31, 2012. The increase continues to provide Whitecap with significant financial flexibility for the remainder of 2011 and into 2012.Recent drilling results in the Pembina Cardium and Valhalla Montney have been above both Whitecap's and the independent reserve evaluator's type curves. Once these results are fully incorporated the associated reserves assignment per well will be increased accordingly. As such we anticipate a positive independent 2011 year-end reserves evaluation.OutlookWe remain confident in our business plan both in the short term and longer term. The current economic environment remains volatile due to the European sovereign debt issues, tenuous US economy, and their impact on both equities and commodity prices. We have executed a successful fourth quarter hedging strategy to protect our cashflow by locking in 45% of our forecast production (7,800 boe/d) at an average WTI floor price of C$97.71 and an average AECO price of C$4.13/mcf. Our capital program for the fourth quarter remains flexible to ensure we maintain our balance sheet strength.Our current base production is 7,400 boe/d (64% oil and NGLs), and we remain on track to meet our exit production guidance of 8,200 to 8,300 boe/d and look forward to updating our shareholders with our results for the balance of the year.Note Regarding Forward-Looking Statements and Other AdvisoriesThis 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, business development plans, performance and opportunities, plans to bring wells on-stream and the timing thereof, financial, operating and production guidance and business opportunities, our capital expenditure program, drilling and development plans and the timing thereof and positive 2011 year end reserves evaluations. 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.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 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. The Company's 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 the Company 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 ( 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.Note: "Boe" means barrel of oil equivalent on the basis of 6 thousand cubic feet ("mcf") of natural gas to 1 bbl. Boes may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf : 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.For further information: Grant Fagerheim, President & CEO orThanh Kang, VP Finance & CFO Whitecap Resources Inc. 500, 222 - 3 Avenue SW Calgary, AB T2P 0B4 Main Phone (403) 266-0767 Fax (403) 266-6975