Whitecap Resources Inc. closed a private placement of CA$200 million senior secured notes maturing Jan. 5, 2022.

Proceeds will repay a portion of Whitecap's outstanding bank debt, the company said Jan. 5.

Whitecap’s borrowing capacity was expanded through the issuance to CA$1.3 billion from CA$1.1 billion. The company also said that its debt became diversified with a long-term fixed interest rate. Its fourth-quarter 2016 net debt-to-funds ratio is 1.8x, which could decrease to 1.3x in 2017.

Whitecap also said that during fourth-quarter 2016, drilling activity increased significantly with up to seven drilling rigs operating and 56 (49.6 net) horizontal oil wells drilled in the quarter.

Fourth-quarter 2016’s average production, based on field estimates, was 50,600 barrels of oil equivalent per day (boe/d), 600 boe/d above company guidance. Full year average production for 2016 will likely be 45,838 boe/d, which is 338 boe/d above earlier guidance. Development capital spending for full year 2016 will likely be within guidance of CA$175 million, the company said.

In southwest Saskatchewan, 12 of 13 gross wells drilled were placed on production and to date are averaging 50% above expected production rates. In Boundary Lake, two of the five fourth-quarter 2016 wells have been placed on production and are averaging 208% of expectations, with IP rates averaging 270 boe/d per well. The company said it has 7 gross (6.4 net) wells planned in Boundary Lake for 2017.

The first quarter of 2017 will also include 54 gross (50.4 net) wells in west-central Saskatchewan, Whitecap said.