Whitecap achieves record production of 16,900 boe/d and provides operational update

Whitecap Resources Inc. ("Whitecap", "we", "us", "our" or the "Company") (WCP.TO) is pleased to report that we have achieved record production of 16,900 boe/d (71% light oil and NGLs) for the month of September, 2012 (based on field estimates). This represents an increase of 25% over second quarter 2012 production and a 153% increase over September 2011 production. On a fully diluted per share basis, this represents an increase of 45% over September 2011 production. Whitecap's third quarter 2012 average production will be within our previous guidance of 15,500 - 16,000 boe/d.

OPERATIONAL UPDATE

We have had a very active summer program with outstanding production additions and capital efficiencies. In the third quarter of 2012 we drilled 41 (32.3 net) wells, all of which were horizontal oil wells, and achieved a 100% success rate.

West Central Saskatchewan - Dodsland (Viking Light Oil)

Since the closing of the Compass acquisition on February 10, 2012 we have made significant progress in the development of the Viking light oil resource play. Our total drilling and completion ("D&C") costs per well have continued to decrease, now currently $0.85 million from $1.12 million , a 24% cost reduction. Since we announced the acquisition our production in the area has increased 71% from 1,400 boe/d to 2,400 boe/d currently.

During the third quarter of 2012 we drilled 17 (16.2 net) and completed 16 (15.2 net) wells which have average IP(30) rates of 118 boe/d (80% oil and NGLs) per well, a 100% increase above our average productivity of 59 boe/d previously.

As a result of increased capital efficiency and productivity, this play has advanced to being one of the best economic performers in our portfolio of resource oil plays.

We have 9 (9.0 net) Viking horizontal oil wells planned for the remainder of 2012.

West Central Alberta - Garrington (Cardium Light Oil)

We have also made significant advancements in the development of the Garrington Cardium play since we closed the Midway acquisition on April 20, 2012 . Our production in the area has increased 27% from 4,100 boe/d to 5,200 boe/d currently and we continue to achieve D&C costs of $2.3 million per well, a 15% cost reduction from the historical $2.7 million .

During the third quarter we drilled 7 (6.0 net) and completed 5 (4.0 net) wells. We continue to optimize our frac design and implementation and as a result, our most recent two wells have tested on average 936 boe/d (84% oil and NGLs) per well with a corresponding average IP(30) rate of 413 boe/d (88% oil and NGLs) per well.

We plan to have one drilling rig working continuously for the remainder of the year in Garrington and plan to drill  6 (6.0 net) more Cardium horizontal wells.

West Central Alberta - Greater Pembina (Cardium Light Oil)

During the third quarter of 2012 we drilled 12 (7.7 net) and completed 9 (5.3 net) wells. Three of these wells were drilled from a single pad which has provided us with significant cost savings. The three wells tested over 500 boe/d (92% oil and NGLs) per well. Combined production from the three well pad has averaged 1,170 boe/d (95% oil and NGLs) for the first two weeks of production.

In the Greater Pembina region we plan to drill 2 (1.0 net) Cardium horizontal wells for the remainder of 2012.

We have also received ERCB approval for our first waterflood pilot in the Cardium "halo". The pilot is in East Pembina and we are in the process of converting one of the existing horizontal wells to water injection. We anticipate first injections to commence in late October 2012 .

Peace River Arch - Valhalla North

During the third quarter of 2012 we drilled 2 (1.5 net) and completed 6.0 (4.3 net) wells. The two Montney Sexsmith oil completions were in the sparsely developed northwest quadrant of the Sexsmith oil pool.  These wells are the most prolific Montney Sexsmith wells we have drilled to date with the wells, on average, testing 819 boe/d  (67% oil and NGLs) per well with a corresponding average IP(30) rate of 633 boe/d (70% oil and NGLs) per well. The wells have a much flatter initial decline profile and higher oil and NGL percentages than the wells drilled in the more mature regions of the pool. The completions and stimulations on these two wells were modified from previous designs and based on the results we will be looking to apply these modifications to our future development drills in the pool.

We have received ERCB approval for Phase 2 of our waterflood expansion to provide waterflood support to the newly completed wells as well as several other producing wells. This will bring the number of injectors to 20 in this pool up from the original 5 when it was acquired in late 2009.

In addition to the success in the Montney, we have had continued success in our offsetting Doe Creek development. Two of our recent Doe Creek horizontal wells, which have D&C costs of $1.3 million per well, have average IP(30) rates of 256 boe/d (85% oil and NGLs) per well. Our working interest production from the Doe Creek pool is currently in excess of 575 boe/d (87% oil and NGLs) and we are in the planning stages of a waterflood which we expect to be in operation in the third quarter of 2013.

We have now concluded our 2012 drilling program in the Peace River Arch and will use this time to monitor the results of the Montney waterflood and recent drills to optimize our next phase of development in early 2013.

HEDGING UPDATE

The ability to prudently manage short term commodity price risk is a critical component of our strategy as we advance towards a dividend growth model. In the fourth quarter of 2012 we have hedged approximately 68% of our forecasted oil and NGL production, net of royalties, at an average WTI floor price of C$99.91/bbl and approximately 40% of our forecasted natural gas production, net of royalties, at an average AECO fixed price of $2.72 /mcf. For 2013 we have hedged 4,993 bbls/d at an average WTI price of C$99.84/bbl and 9,000 mcf/d at an average AECO price of $3.20 /mcf. Most recently we have started layering in 2014 positions, currently 1,000 bbls/d for the first half of 2014 at WTI C$94.10/bbl. We will continue to monitor the commodity price environment to layer on incremental risk management contracts over time.

OUTLOOK

We are in the process of having our bank lines reviewed as a result of our scheduled mid-year reserve review. As a result of our operational success to date we anticipate an increase that will continue to strengthen our financial flexibility moving forward. Technical enhancements and improvements in each of our core areas have led to increased productivity and stronger capital efficiencies which provides us with a solid platform for 2013 and beyond. The outlook for Whitecap remains very positive and we look forward to releasing our third quarter 2012 financial and operating results and our 2013 plans in early November 2012 .

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. In particular, this press release contains forward-looking information relating to our ongoing business plan (including the review of a dividend policy), strategy and targets, industry conditions, commodity prices, capital spending, waterflood plans, production and cash flow, hedging strategies, drilling inventory or development and drilling plans and potential growth.

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 efficiently integrate assets and employees acquired through acquisitions, 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. Our 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 we 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 (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.

"Boe" means barrel of oil equivalent on the basis of 6 mcf of natural gas to 1 bbl of oil. 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.  In addition, given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.

The test results noted in this press release are not necessarily indicative of long-term performance or of ultimate recovery.

SOURCE: Whitecap Resources Inc.

Grant Fagerheim, President and CEO
or
Thanh Kang, VP Finance and CFO

Whitecap Resources Inc.
500, 222 - 3 Avenue SW
Calgary, AB T2P 0B4

Main Phone (403) 266-0767
Fax (403) 266-6975