Calgary, Alberta – Leucrotta Exploration Inc. (TSXV: LXE) (“Leucrotta” or the “Company”) is pleased to announce that its 4-well Montney Phase 1 Mica Test Pad is fully on production and has produced an average rate of approximately 1,700 barrels of light oil per day and 10 mmcf/d of liquids-rich gas per day for a total Pad production rate of 3,300 boepd over the last 10 days. Leucrotta’s 2021 exit rate production is estimated at 5,000 boe/d after adding base production of approximately 1,700 boe/d to the new production. Gas production from the wells is being restricted to optimize oil recoveries in addition to the wells flowing against approximately 400 psi of line pressure. The wells were completed and then tested individually and together under varying operating conditions over a total combined time period of over 45 days to gather as much information as possible for future development.
While initial rates are not indicative of average annual rates, the oil rates are encouraging and the oil to gas ratio is significantly higher than anticipated.
Leucrotta has outlined a development plan in its Corporate Presentation (1) to reach 30,000 boe/d within a 5-year period and the Mica Test Pad is the first major milestone to be achieved. The next milestones outlined in the Presentation are the construction of the Mica Oil Battery and concurrent drilling and completion of Pads II and III.
Leucrotta is a Montney oil and gas producer with operations located in British Columbia and Alberta and is one of the largest landholders in the Light Oil Window of the Montney Fairway holding in excess of 240 contiguous net sections of land.
Leucrotta is also well-capitalized and estimates that it will have no debt and approximately $30 million cash and working capital at the end of 2021.
We look forward to reporting on future developments as we continue to execute our plan and attain various milestones.
(1) Please refer to the Company’s website at www.leucrotta.ca for a copy of the Corporate Presentation dated December 2021.
Oil and Gas Terms
MMcf/d Millions of cubic feet per day
Boe/d Barrels of oil equivalent per day
Disclosure provided herein in respect of a boe may be misleading, particularly if used in isolation. A boe conversion rate of six thousand cubic feet of natural gas to one barrel of oil equivalent has been used for the calculation of boe amounts in the MD&A. This boe conversion rate is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
The Company uses the following references to sales volumes in this news release:
Liquids-rich gas refers to shale gas.
Light oil refers to tight oil.
Oil equivalent or boe refers to the total oil equivalent of shale gas, tight oil, and NGLs combined, using the conversion rate of six thousand cubic feet of shale gas to one barrel of oil equivalent as described above.
All dollar figures are Canadian dollars unless otherwise noted.