(The Canadian Press) CALGARY _ Whitecap Resources Inc. (TSX: T.WCP, Stock Forum) has struck a $110-million deal to buy a package of principally Crown lands in the Dodsland area of Saskatchewan.
The purchase of the Viking light oil assets will add about 900 oil equivalent barrels of daily output, and will increase to 1,200 in 2014 after $8.2 million in planned capital expenditures, the company said in a press release.
Whitecap Resources said the acquisition includes facilities and pipeline infrastructure near its existing Viking-area operations.
As a result of the deal, the company said it will now produce an average of 17,800 to 18,000 oil equivalent barrels of daily output for the year, up from its previous guidance of 17,200 to 17,400.
To pay for the purchase, Whitecap will raise $110 million through a common share offering and a non-brokered private placement of flow-through common shares.
The company said it will sell nearly 9.3 million shares at $9.70 per share to a syndicate of underwriters and nearly 1.9 million flow-through shares at $10.67 per share in the non-brokered private placement.
Whitecap shares rose 0.30% Tuesday to $10.14, leaving the company with a market cap of $1.3 billion, based on 130.4 million shares outstanding. The 52-week range is $10.28 and $5.79.