CALGARY, ALBERTA–(Marketwired – May 26, 2016) – LEUCROTTA EXPLORATION INC. (TSX VENTURE:LXE) (“Leucrotta” or the “Company”) is pleased to announce its financial and operating results for the three months ended March 31, 2016. All dollar figures are Canadian dollars unless otherwise noted.
HIGHLIGHTS
FINANCIAL RESULTS | ||||||||||
Three Months Ended March 31 | ||||||||||
($000s, except per share amounts) | 2016 | 2015 | % Change | |||||||
Oil and natural gas sales | 2,301 | 4,291 | (46 | ) | ||||||
Funds from (used in) operations (1) | (283 | ) | 1,166 | (124 | ) | |||||
Per share – basic and diluted | – | 0.01 | (100 | ) | ||||||
Net loss | (2,773 | ) | (1,816 | ) | 53 | |||||
Per share – basic and diluted | (0.02 | ) | (0.01 | ) | 100 | |||||
Capital expenditures and acquisitions | 4,398 | 17,649 | (75 | ) | ||||||
Working capital | 40,952 | 8,520 | 381 | |||||||
Common shares outstanding (000s) | ||||||||||
Weighted average – basic and diluted | 165,227 | 165,227 | – | |||||||
End of period – basic | 165,227 | 165,227 | – | |||||||
End of period – diluted | 189,279 | 185,099 | 2 |
(1) See “Non-GAAP Measures” section. |
OPERATING RESULTS (1) | Three Months Ended March 31 | |||||||||
2016 | 2015 | % Change | ||||||||
Daily production | ||||||||||
Oil and NGLs (bbls/d) | 412 | 387 | 6 | |||||||
Natural gas (mcf/d) | 5,031 | 11,428 | (56 | ) | ||||||
Oil equivalent (boe/d) | 1,251 | 2,291 | (45 | ) | ||||||
Revenue | ||||||||||
Oil and NGLs ($/bbl) | 37.21 | 42.93 | (13 | ) | ||||||
Natural gas ($/mcf) | 1.98 | 2.72 | (27 | ) | ||||||
Oil equivalent ($/boe) | 20.22 | 20.81 | (3 | ) | ||||||
Royalties | ||||||||||
Oil and NGLs ($/bbl) | 3.06 | 5.13 | (40 | ) | ||||||
Natural gas ($/mcf) | – | 0.09 | (100 | ) | ||||||
Oil equivalent ($/boe) | 1.02 | 1.32 | (23 | ) | ||||||
Production expenses | ||||||||||
Oil and NGLs ($/bbl) | 13.98 | 6.60 | 112 | |||||||
Natural gas ($/mcf) | 1.09 | 1.10 | (1 | ) | ||||||
Oil equivalent ($/boe) | 8.98 | 6.60 | 36 | |||||||
Transportation expenses | ||||||||||
Oil and NGLs ($/bbl) | 4.65 | 2.75 | 69 | |||||||
Natural gas ($/mcf) | 0.43 | 0.26 | 65 | |||||||
Oil equivalent ($/boe) | 3.26 | 1.78 | 83 | |||||||
Operating netback (2) | ||||||||||
Oil and NGLs ($/bbl) | 15.52 | 28.45 | (45 | ) | ||||||
Natural gas ($/mcf) | 0.46 | 1.27 | (64 | ) | ||||||
Oil equivalent ($/boe) | 6.96 | 11.11 | (37 | ) | ||||||
Depletion and depreciation ($/boe) | (11.89 | ) | (8.06 | ) | 48 | |||||
General and administrative expenses ($/boe) | (10.73 | ) | (6.01 | ) | 79 | |||||
Share based compensation ($/boe) | (9.68 | ) | (6.86 | ) | 41 | |||||
Finance expenses ($/boe) | (0.35 | ) | (0.25 | ) | 40 | |||||
Finance income ($/boe) | 1.34 | 0.61 | 120 | |||||||
Deferred tax recovery ($/boe) | – | 0.65 | (100 | ) | ||||||
Net loss ($/boe) | (24.35 | ) | (8.81 | ) | 176 |
(1) | See “Frequently Recurring Items” section. |
(2) | See “Non-GAAP Measures” section. |
Selected financial and operational information outlined in this news release should be read in conjunction with Leucrotta’s unaudited condensed interim financial statements and related Management’s Discussion and Analysis (“MD&A”) for the three months ended March 31, 2016, which are available for review at http://www.sedar.com/ and on our website at http://www.leucrotta.ca/. |
PRESIDENT’S MESSAGE
As previously announced, Leucrotta drilled a light oil delineation well (713 boe/d including 300 boe/d of 42 API sweet oil and 55 boe/d of natural gas liquids) in the Lower Montney turbidite play confirming a large light oil resource on its land. Leucrotta estimates this resource is present on a minimum of 60 net sections of Leucrotta acreage. Leucrotta has previously announced liquids-rich delineation wells on its Lower Montney Turbidite play with the East Doe well achieving a test rate of 1,290 boe/d of liquids-rich gas. Leucrotta estimates this large gas resource covers approximately 40 net sections of Leucrotta acreage.
In Q1 2016, Leucrotta spent $4.4 million of which $3.2 was used to purchase land in the East Doe area (previously announced). Leucrotta expects minimal capital will be spent in Q2 2016, however, Leucrotta will be very active in getting pipelines and locations licensed to maintain maximum flexibility in its go forward capital program and be able to react quickly when commodity markets are favourable.
The initial focus of capital will be to tie-in the 8-22 light oil well and the 8-18 liquids-rich gas well to the Leucrotta owned facility at Doe and to start further delineation of the Montney light oil resource noted above. Leucrotta anticipates it will complete the tie-ins by the end of Q3 2016 and start drilling in late Q3 2016 or early Q4 2016. The extent of the program will be driven in part by commodity prices.
At the end of Q1 2016, Leucrotta maintained a cash and working capital balance of $41.0 million and has no debt. Current production is approximately 1,100 boe/d which will see natural declines until previously drilled wells are tied in. Leucrotta has not provided guidance on capital spending given the uncertainty in the commodity markets but will be cautious in its spending profile.
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