Slide 1: Premium Light Oil Resource Player
Premium Light Oil Resource Player OCTOBER 2 0 1 0
Slide 2: Corporate Profile
Corporate Profile • Trading symbol / Exchange WCP – TSX – WCP moved to TSX Monday October 18, 2010 • Shares outstanding (post consolidation) – Basic (mm) 31.4 – Diluted (mm) 38.5 • Market capitalization ($mm) $195 • Management, employees and directors ownership (f.d.) 22% • Total volumes traded (mm)
Slide 3: Experienced Team, Proven Track Record
Experienced Team, Proven Track Record Management Yrs. Experience • Grant B. Fagerheim President & CEO 27 • Joel Armstrong, VP Production & Operations 24 • Dan Christensen, VP Exploration 24 • Darin Dunlop, VP Engineering 21 • Thanh Kang, VP Finance & CFL 10 • Gary Lebsack, VP Land 11 • Dave Mombourq
Slide 4: Whitecap Founding Principles
Whitecap Founding Principles • All employees are shareholders • Light oil focus ($60 - $80 WTI price platform) • Per share long term growth (cash flow, production, reserves) • Efficient cash flow re-investment • Field operations focus • Responsible and effective debt management 4
Slide 5: Aggressive + Focused Oil Growth
Aggressive + Focused Oil Growth • Sept 17, 2009 – Core anchor property purchased ¾ Acquired Valhalla North asset for $58 mm Peace River Arch ¾ 850 boe/d; 4.8 mmboe (50% oil and NGL’s) ¾ Significant light oil waterflood upside; 76 + mmbbl OOIP West Central • June 25, 2010 – Whitecap goes public ¾ Clo
Slide 6: Operations Summary
Operations Summary Current production (boe/d) 2,250 (60% Oil & NGL’s) Near term capability (boe/d) 2,600 Proved reserves (mboe) 5,697 (58% Oil & NGL’s) P+P reserves (mboe) 11,547 (56% Oil & NGL’s) Estimated P+P RLI (years) 15.1 Net undeveloped land (acres) 50,000 Total undrilled locations 130 Tax po
Slide 7: Strategy – Aggressive Mid Cap Oil Resource Player
Strategy – Aggressive Mid Cap Oil Resource Player Share Price Appreciation • Per share accretive growth (cash flow, production, reserves) • Project rate of returns • Target 5x return on investment Acquisition Target oil-in-place Focus • Quality people and assets • Capital/operational efficiencies Op
Slide 8: Per Share Growth To Date
Per Share Growth To Date PRODUCTION GROWTH PER SHARE RESERVES GROWTH PER SHARE Initial Post SEL Post Onyx Exit 2010e Initial Post SEL Post Onyx 90 32 80 83 30 Production per share (boed/mm) P+PA per share (mmboe/mm) 70 30 +63% 28 60 +25% 26 50 +11% 51 +12% 46 24 +4% 40 41 24 23 22 30 850 1,360 1,960
Slide 9: Proven Oil Resource Plays – Focus Operating Areas
Proven Oil Resource Plays – Focus Operating Areas ALBERTA SASKATCHEWAN Core Property: Valhalla North Peace River Arch • Production (% of total) 55 • Development locations 70 • % oil reserves 60% • Average WI 40% • Current decline 12% Core Property: Pembina West Central • Production (% of total) 30 •
Slide 10: Valhalla North – Premium Oil Asset
Valhalla North – Premium Oil Asset • Acquired Sep 2009 for $58 MM • Extensive infrastructure in place ¾ 62 sections of contiguous land ¾ 100% Operated production and facilities ¾ Close to the major service centre at Grande Prairie • Multi-zone oil and gas prone (16+ prospective zones) ¾ Successful M
Slide 11: Valhalla Montney C Oil Pool – Waterflood Development Project
Valhalla Montney C Oil Pool – Waterflood Development Project Historical Development (36o API Oil Pool) • 46 producers mostly drilled 1993-1998 ¾ Supported by 5 injectors – need more injectors ¾ 12 wells show good response – waterflood works ¾ Water at only 3 wells – very slow response ¾ Cumulative V
Slide 12: Valhalla Montney C Oil Pool Results – Whitecap's First Year
Valhalla Montney C Oil Pool Results – Whitecap’s First Year 2010 Drilling Program • Drilled 5 Hz Multi Fracs and 3 verticals to date 3-5 Hz ¾ 3 verticals and 3 Hzntls on Production ¾ Last 2 Hzntls on Prod mid-Nov • May 2010 HZ Oil Incentive: Holiday increased to 80 mboe 8-29 Hz Optimized Completion
Slide 13: Whitecap Entry Into the Cardium Horizontal Resource Play
Whitecap Entry Into the Cardium Horizontal Resource Play Whitecap East Pembina Area Why the Cardium Play ? Daylight 1,070 boepd • Industry initial horizontal results demonstrating Daylight (West) strong economics 255 boepd • Largest conventional oil resource in Canada • Prospective over a 10,000 sq
Slide 14: West Central AB – Whitecap Cardium Resource Play
West Central AB – Whitecap Cardium Resource Play Whitecap Cardium Statistics • Undeveloped Land: 19 (15 net) sections • Farm-in Lands: 1.5 sections • Producing Cardium horizontal wells: 4 (4 net) • Horizontal Cardium Locations: 40 • Remaining 2010 Horizontal Wells: 5 (4 net) • Type Curve: IP3 115 bo
Slide 15: Fosterton Roseray – Development Drilling Plus Pool Extension Potential
Fosterton Roseray – Development Drilling Plus Pool Extension Potential • Spitfire drilled 7 Roseray Sand Gross Pay Map successful wells from 2004-2007 Whitecap Drilled Q3 • 3rd Party Eng. booked 2P reserves of 150 mbbls/well • 2 new Q3 drills onstream • 9 additional low risk development locations at
Slide 16: Exceptional Oil Play Economics – Per Well
Exceptional Oil Play Economics – Per Well Valhalla North Cardium Horizontals Fosterton Per well (except F&D) Horizontal Vertical East Pembina Willesden Green Roseray Vertical Working interest 30 – 50% 30 – 50% 90-100% 50% 84.1% DCE&T capital ($000) 4,100 2,100 2,500 2,800 600 Production, IP3 (boe/d)
Slide 17: Outlook
Outlook 2010e(1) 2011e (2) % Change Operational Average production (boe/d) 1,600 3,600 125 Exit production (boe/d) 3,000 – 3,200 4,300 34 % Oil & NGLs 60% 65% 5 Operating netback ($/boe) 32.25 39.00 21 Net CAPEX (excludes acquisitions) ($mm) 38.0 45.0 18 Wells drilled (#) 17 30 76 Financial Cash flo
Slide 18: The Whitecap Investment Opportunity
The Whitecap Investment Opportunity Experienced Management Team • Management team has a track record of success – focus on share price appreciation Sound Capital Structure • Allows focus on per share growth and low debt ratio Strong Asset Base • Stable production base with 130+ low risk drilling inv
Slide 19: Active Research Coverage
Active Research Coverage Target Price (1) • Cormark Securities Inc. $9.50 • GMP Securities $10.00 • Haywood Securities $8.50 • Macquarie Equity Research $9.00 • National Bank Financial $7.50 • Stonecap Securities $10.00 (1) Post-consolidation target share prices 19
Slide 20: Note Regarding Forward Looking Statements
Note Regarding Forward Looking Statements Special Note Regarding Forward-Looking Statements and Forward-Looking Information This presentation contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "a
Slide 21: www.wcap.ca
www.wcap.ca October 18, 2010
Slide 22: Consistent Track Record: Previous Junior Public Companies
Consistent Track Record: Previous Junior Public Companies SHARE PRICE GROWTH $2.20 to $7.29 $1.92 to $19.45 $2.20 to $6.75 per share per share per share 3.3x 10.1x 3.1x PRODUCTION GROWTH RESERVES GROWTH (1) Production before the strategic asset sale in late 2007 (1) Total production (mboe) over the