UPDATE 2-Whitecap Resources to buy Midway Energy for C$450 mln

Tue Feb 28, 2012 4:58pm GMT
 

* Whitecap sees 2012 avg production to rise 43 pct

* Whitecap offers C$4.85 in cash or 0.4802 of its share

* Midway shares rise to C$4.83

By Maneesha Tiwari

Feb 28 (Reuters) - Canada's Whitecap Resources Inc said it will buy light-oil explorer Midway Energy for about C$450 million in a cash-and-stock deal that will add complementary assets to its drilling operations in the Pembina Cardium field in Alberta.

Calgary-based Midway, which has light oil assets in Garrington and Swan Hill, Alberta, reported proven plus probable reserves of 24.2 million barrels of oil equivalent (boe) as of Dec. 31.

"It's a very solid move by Whitecap," said Analyst Kevin Shaw at Casimir Capital.

The transaction will add Midway's top-tier Beaverhill Lake and Garrington assets to the Whitecap portfolio, he said. "It rounds up the company's core portfolio with additional Cardium assets," Shaw added.

With this deal, Whitecap -- which has operations in Alberta and Saskatchewan -- raised its average production forecast 43.5 percent to about 15,500 barrels of oil equivalent per day (boe/d) for this year.   Continued...

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