Accessibility/Mobile Features
Skip Navigation
Skip to Content
Editorial News
Classified Sites

The Canadian Press - ONLINE EDITION

Whitecap to pay$266.7M for controlling interest in Nisku light, sweet oil pool

CALGARY - Whitecap Resources Inc. (TSX:WCP) has announced a deal to acquire and consolidate a controlling interest in a conventional Nisku light sweet oil pool in Alberta for $266.7 million in cash.

The asset, located at Elnora, 80 kilometres east of Whitecap's Garrington core area, will add 2,500 barrels of oil per day equivalent, of which 90 per cent is oil and natural gas liquids.

It also includes strategic facilities consisting of two oil batteries, water disposal infrastructure and pipelines "which will be important for future low-cost production growth," Whitecap said in announcing the deal after markets closed Wednesday.

Meanwhile, Whitecap also said it has entered into an unrelated letter of intent with a private oil and gas company to dispose of approximately 600 boe/d of non-core production for proceeds of $57 million.

The acquisition will be funded with a concurrent $125-million bought deal equity financing, proceeds from the disposition and bank debt. The financing will involved the sale of 7.55 million subscription receipts at $16.55 apiece for gross proceeds of about $125 million. Each receipt receipt will be exchangeable for on Whitecap share.

Meanwhile, Whitecap said its board has approved a 12 per cent increase in its monthly dividend to seven cents per share from 6.25 cents , It is expected to take effect with the January 2015 dividend payable in February.

On the Toronto Stock Exchange, Whitecap stock closed up 37 cents or 2.2 per cent at $17.21 on Wednesday.

  • Rate this Rate This Star Icon
  • This article has not yet been rated.
  • We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high. If you thought it was well written, do the same. If it doesn’t meet your standards, mark it accordingly.

    You can also register and/or login to the site and join the conversation by leaving a comment.

    Rate it yourself by rolling over the stars and clicking when you reach your desired rating. We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high.

Sort by: Newest to Oldest | Oldest to Newest | Most Popular 0 Commentscomment icon

You can comment on most stories on You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.

There are no comments at the moment. Be the first to post a comment below.

Post Your Commentcomment icon

  • You have characters left

The Brandon Sun does not necessarily endorse any of the views posted. Comments are moderated before publication. By submitting your comment, you agree to our Terms and Conditions. New to commenting? Check out our Frequently Asked Questions.


Make text: Larger | Smaller

Brandon Sun Business Directory
The First World War at 100

Social Media

Canadian Mortgage Rates