Whitecap Resources Inc. Announces Third Quarter 2010 Results and 2011
Guidance

CALGARY, Nov. 3 /CNW/ - Whitecap Resources Inc. ("Whitecap" or the "Company") (TSX-V: WCP) is pleased to announce it has filed on SEDAR its unaudited financial statements and related Management's Discussion and Analysis ("MD&A") for the three and nine months ended September 30, 2010. Selected financial and operational information is outlined below and should be read in conjunction with Whitecap's unaudited financial statements and related MD&A which are available for review at www.sedar.com.

FINANCIAL AND OPERATING HIGHLIGHTS

    
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                                      Three months ended   Nine months ended
    Financial ($000's except                September 30,       September 30,
     per share amounts)                   2010      2009      2010      2009
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    Petroleum and natural gas revenues   7,778     1,068    16,245     1,068
    Funds generated by operations(1)     3,998         4     8,027      (262)
      Per share basic/diluted             0.01      0.00      0.04     (0.18)
    Net loss                            (4,573)     (445)   (5,262)     (711)
      Per share basic/diluted            (0.02)    (0.10)    (0.03)    (0.49)
    Capital expenditures                16,067         2    29,019        18
    Corporate and property
     acquisitions (cash consideration)  40,534    56,550    40,534    56,550
    Bank debt and working capital
     surplus (deficit)(2)              (46,674)      824   (46,674)      824
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    Operating
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    Production
      Crude oil (bbls/d)                   861       108       516        36
      NGLs (bbls/d)                        121        24       101         8
      Natural gas (mcf/d)                4,828       922     3,723       311
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      Total (boe/d)                      1,787       285     1,238        96
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    Average realized price
      Crude oil ($/bbls)                 69.48     69.72     72.36     69.72
      NGLs ($/bbls)                      48.61     46.35     55.42     46.35
      Natural gas ($/mcf)                 3.92      3.09      4.46      3.09
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      Total ($/boe)                      47.32     40.72     48.08     40.72
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    (1) Funds used in operations are calculated as cash flow from operating
        activities before the change in non-cash working capital and is a
        non-GAAP measurement
    (2) Excludes risk management contracts


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                                      Three months ended   Nine months ended
                                            September 30,       September 30,
                                          2010    2009(4)     2010    2009(4)
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    Netback ($/boe)
      Petroleum and natural gas revenue  47.32     40.72     48.08     40.72
      Other income                        0.20      0.05      0.33      0.05
      Royalties                          (6.81)    (7.02)    (7.97)    (7.02)
      Operating expenses                (10.22)   (12.11)   (10.03)   (12.11)
      Transportation expenses            (1.29)    (1.97)    (1.50)    (1.97)
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    Operating netback prior to hedging   29.20     19.67     28.91     19.67
      Realized hedging gain               1.52         -      1.69         -
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    Operating netback                    30.72     19.67     30.60     19.67
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    Total wells drilled                    4.0         -      12.0         -
    Working interest wells                 3.0         -       7.1         -
    Success rate                          100%         -      100%         -
    Undeveloped land holdings (acres)
      Gross                             67,247    11,698    67,247    11,698
      Net                               47,636     4,388    47,636     4,388
    Common shares, end of period
     (000's)(3)                        314,478    18,000   314,478    18,000
    Weighted average shares (000's)    283,212     4,352   198,354     1,456
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    (3) Subsequent to September 30, 2010, Whitecap consolidated its shares on
        a 10 to 1 basis
    (4) 2009 operating netback is for one month ended September 30, 2009
    

MESSAGE TO SHAREHOLDERS

Whitecap Resources Inc. ("Whitecap", "we", "us", "our") is pleased to provide you with our report on our third quarter operational and financial results. We are a premium light oil resource producer focused on per share growth in cash flow, production and reserves.

Our third quarter was characterized by an active acquisition, integration and development drilling program that has led to significant increases in production, reserves and cash flow. During the quarter we announced and closed the corporate acquisition of Onyx 2006 Inc. ("Onyx") concurrent with a $40 million equity financing. This was a follow-up to our reverse takeover of Spitfire Energy Ltd. that closed on June 25, 2010, which resulted in Whitecap becoming publicly traded.

We participated in the drilling of four horizontal wells during the quarter: two operated horizontal wells in our Valhalla North Montney C oil pool, which were successful and two horizontal Cardium multi-frac wells that Whitecap funded as part of its acquisition of Onyx. The latter two wells were also successful and produced out their hydrocarbon load fluid through the quarter.

Our accomplishments in the third quarter of 2010 include:

    
    -   Closing the Onyx acquisition on July 30, 2010 for total consideration
        of approximately $52 million. The assets acquired are in the Pembina
        area of Alberta and added an additional light oil growth area with
        high netbacks to our existing portfolio of premium oil assets. The
        acquisition provides us with an entry point into the Cardium resource
        play.

    -   Executing an effective $15 million capital program during the quarter
        which included drilling 4.0 (3.0 net) horizontal wells.

    -   Increasing production volumes by 85 percent to 1,787 boe/d in the
        third quarter of 2010 compared to 964 boe/d in the second quarter of
        2010 and increasing over five times compared to the prior year.

    -   Continuing to increase our oil weighting from 46 percent in the third
        quarter of 2009 to 55 percent in the third quarter of 2010. Current
        production is approximately 2,250 boe/d with near term capability of
        2,600 boe/d.

    -   Generating funds from operations of $4.0 million in the third
        quarter, which includes $0.3 million of hedging gains on risk
        management contracts, an increase of 106 percent over the second
        quarter of 2010. Year to date we have realized hedging gains of
        $0.6 million.

    -   Improving our operating netback in the third quarter by 56 percent to
        $30.72 compared to $19.67 in the same period in the prior year. This
        was driven mainly by higher commodity prices, lower operating costs
        and realized hedging gains.

    -   Increasing our hedge position to 33 percent of our estimated fourth
        quarter production at a fixed price of C$84.50 WTI on 600 bbls/d and
        a collar price of C$70 by C$100 WTI on 100 bbls/d. For the first half
        of 2011, we have hedged 600 bbls/d at an average fixed price of
        C$86.66 WTI, and for the second half of 2011 we used a combination of
        fixed price swaps at an average price of C$86 WTI on 300 bbls/d
        and a collar price of C$75 WTI by C$100 WTI on 300 bbls/d. This
        guarantees us $5.5 million of revenue in the fourth quarter of 2010
        and $21.4 million of revenue in 2011, leaving sufficient pricing
        upside in addition to the ability to layer on incremental hedges.

    -   Improving our undeveloped land position in our three core growth
        areas to 47,636 net undeveloped acres from 30,308 net acres, a
        57 percent increase.

    -   Expanding our Board of Directors to include two well respected and
        knowledgeable oilmen: Greg Fletcher and Glenn McNamara. We are happy
        to have Greg and Glenn join our team and look forward to working with
        them as we grow the company.
    

Subsequent to the quarter end we consolidated our common shares on a 10 to 1 basis. The consolidated common shares commenced trading on the Toronto Stock Exchange at the opening of trading on October 18, 2010, under the symbol WCP. The common shares were delisted from the TSX Venture Exchange at that time. Whitecap currently has 31,447,783 common shares outstanding.

For the remainder of the 2010 year, we will continue to focus our efforts towards capital and operating efficiencies in our three core oil growth areas. We expect to drill five additional horizontal wells before the end of the year, four in the west central Alberta area targeted towards Cardium light oil and one horizontal well in our Valhalla North Montney C oil pool. With cooperation from the weather, our plan is to have all of the wells drilled and on-stream by year-end which will lead us to our anticipated 3,000-3,200 boe/d exit production rate at the end of 2010. The exit production rate is based on December average production and will be dependent on timing of load fluid recoveries on our four Cardium wells being drilled and completed within the fourth quarter.

2011 Guidance

As has been the case in 2010, we expect 2011 to continue to experience significant variability with respect to commodity prices with oil trading at the higher end of our $70 to $85 WTI outlook while natural gas continues to trade at the lower end of the past three year price curve.

For 2011, our Board of Directors has approved a $48 million capital program consisting of approximately 32 (20 net) wells, all of which are targeting high quality, high netback oil. On a gross basis, we expect that 13 wells will be drilled in Valhalla targeting continued waterflood development of the Montney C pool as well as other prospective oil targets at shallower depths than the Montney C. In West Central Alberta, we expect to drill 10 horizontal wells targeting Cardium and expanding our footprint in the Belly River formation, and lastly, 9 wells in southwest Saskatchewan, further developing the oil pool that we acquired in late June of this year. Although we do not specifically budget for acquisitions, our technical team continues to evaluate opportunities that will add per share growth in cash flow, production and reserves.

We anticipate a 2011 average production of 3,500 boe/d (65 percent weighted to oil and NGL's) and a 2010 exit rate of 4,500 boe/d (67 percent weighted to oil and NGL's), representing 50 percent growth from 2010 exit rate guidance.

2011 guidance as follows:

    
    Average production (boe/d)           3,500 (65% Oil and NGL's)
    Exit production (boe/d)              4,500 (67% Oil and NGL's)

    Cash flow ($mm)                      45.0
      Per share ($ basic)                1.29

    Operating netback ($/boe)            40.00

    Net capital expenditures ($mm)       48.0
    Wells drilled (No.)                  32.0 (20.0 net)

    Oil price (US$ WTI)                  82.00
    AECO gas price (C$/GJ)               4.00
    CAD/USD exchange rate                0.95
    

We currently have a drilling inventory in excess of 130 locations which represents a four year inventory based on our anticipated 2011 activity. We look forward to building another successful year with our shareholders as we strive towards becoming a premium intermediate sized light oil producer.

Note Regarding Forward-Looking Statements and Other Advisories

This 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, financial, operating and production results and business opportunities. 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 there from. 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 (www.sedar.com).

These 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 mcf of natural gas to 1 bbl. Boe's 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, or Thanh Kang, VP Finance and CFO, Whitecap Resources Inc., 500, 222 - 3 Avenue SW, Calgary, AB, T2P 0B4, Main Phone [phone], Fax [phone]