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  • Leucrotta Exploration Inc. (LXE) has released its financial and operating results for the three months and year ended December 31, 2020
  • The company sold natural gas assets located in Doe, BC for gross proceeds of C$30.0 million
  • On March 31, 2021, Leucrotta closed bought-deal public financing through a syndicate of underwriters
  • The company issued 45.2 million units at a price of $0.73 per unit for gross proceeds of $33.0 million
  • The company has received an extension from the TSX-V to complete its non-brokered private placement of up to 2.0 million flow-through units
  • Leucrotta Exploration Inc is a Canadian-based oil and gas company
  • Leucrotta Exploration Inc. (LXE) is down 1.61 per cent, trading at C$0.61 per share at 10:30 am ET

Leucrotta Exploration Inc. (LXE) has released its financial and operating results for the three months and year ended December 31, 2020. 

FINANCIAL RESULTS      
 Three Months Ended December 31Year Ended December 31
($000s, except per share amounts)20202019% Change20202019% Change
       
Oil and natural gas sales6,5156,870(5)23,58627,645(15)
       
Cash flow from operating activities2122,098(90)1,18710,465(89)
   Per share – basic and diluted0.01(100)0.010.05(80)
       
Adjusted funds flow (1)8072,316(65)1,35510,266(87)
   Per share – basic and diluted0.01(100)0.010.05(80)
       
Net loss16,6976,140172110,8555,5291,905
Per share – basic and diluted0.080.031670.550.031,733
       
Capital expenditures and acquisitions3954,160(91)13,71614,997(9)
       
Proceeds on sale of properties and equipment (2)8,2064,76772
       
Adjusted working capital (deficiency) (1)   (5,807)125(4,746)
       
Common shares outstanding (000s)      
   Weighted average – basic and diluted200,525200,525200,525200,525
       
   End of period – basic   200,525200,525
   End of period – fully diluted   214,132226,646(6)

(1) See “Non-GAAP Measures” section.

(2) The sale of equipment for proceeds of $4.8 million in 2019 is exclusive of $2.7 million deposit received in Q4 2018.

OPERATING RESULTS (1)Three Months Ended December 31Year Ended December 31
 20202019% Change20202019% Change
       
Daily production      
   Oil and NGLs (bbls/d)645765(16)8568204
   Natural gas (mcf/d)13,50812,392913,90313,3474
   Oil equivalent (boe/d)2,8972,83023,1733,0444
       
Revenue      
   Oil and NGLs ($/bbl)43.0651.26(16)33.9451.80(34)
   Natural gas ($/mcf)3.182.86112.552.492
   Oil equivalent ($/boe)24.4426.39(7)20.3124.88(18)
       
Royalties      
   Oil and NGLs ($/bbl)3.091001.79100
   Natural gas ($/mcf)0.101000.06100
   Oil equivalent ($/boe)1.141000.75100
       
Net operating expenses (2)      
   Oil and NGLs ($/bbl)10.468.43249.988.3420
   Natural gas ($/mcf)1.060.80331.010.8519
   Oil equivalent ($/boe)7.295.77267.105.9519
       
Net transportation and marketing expenses (2)     
   Oil and NGLs ($/bbl)0.371.35(73)0.751.34(44)
   Natural gas ($/mcf)1.371.46(61.511.1136
   Oil equivalent ($/boe)6.456.74(4)6.835.2530
       
Operating netback (2)      
Oil and NGLs ($/bbl)29.1441.48(30)21.4242.12(49
Natural gas ($/mcf)0.650.608(0.03)0.53(106
Oil equivalent ($/boe)9.5613.88(31)5.6313.68(59
       
Depletion and depreciation ($/boe)(7.41)(9.65(23)(8.50)(9.56)(11)
 Asset impairment        ($/boe)(50.66)(22.41)126(87.31)(5.25)1,563
 General and             administrative    expenses ($/boe)(4.36)(4.76)(8)(3.90)(4.30)(9
Share based compensation ($/boe)(1.33)(0.20)565(0.54)(0.51)6
Gain on sale of assets ($/boe)1.301.30
Loss on onerous contract ($/boe)(7.88100(1.81)100
Finance expense ($/boe)(1.14)(0.47)143(0.46)(0.36)28
Finance income ($/boe)0.04(100)0.03(100)
Unrealized gain on risk management
contracts ($/boe)
0.551000.13100
Net loss ($/boe)(62.67)(23.57)166(95.46)(4.97)1,821

(1) See “Frequently Recurring Terms” section.
(2) See “Non-GAAP Measures” section.

Property sale

The company sold natural gas assets located in Doe, BC for gross proceeds of C$30.0 million. The assets included 10.25 sections of non-strategic land with three wells producing approximately 375 boe/d and one shut-in well. The disposition closed on April 1, 2021.

In conjunction with the disposition, the company’s demand loan facility of $8.0 million was reduced to $2.0 million and the covenant to enter into and maintain forward commodity price contracts was removed from the credit facility.

The demand letter of credit facility was unchanged and remains at $4.0 million.

Financing

On March 31, 2021, Leucrotta closed bought-deal public financing through a syndicate of underwriters. The company issued 45.2 million units at a price of $0.73 per unit for gross proceeds of $33.0 million.

A unit is comprised of one common share of Leucrotta and 0.5 common share purchase warrant. Each whole common share purchase warrant entitles the holder to purchase one common share at an exercise price of $1.00 per common share expiring on March 31, 2023.

The company has received an extension from the TSX Venture Exchange to complete its non-brokered private placement of up to 2.0 million flow-through units. The closing date has been extended to May 28, 2021. 

President’s Comment

We are very pleased with the recent events of 2021 that have allowed us to initiate the Mica Project. (1) After years of hard work to capture and delineate the large resource base at Mica, we are finally in a position to develop the resource for the benefit of all shareholders. With the Mica Project expected to ramp up to over 30,000 boe/d (1) within a 5-year timeframe, Leucrotta anticipates having very high production growth rates for several years.

Leucrotta Exploration Inc is an oil and natural gas company operating in Canada. It is mainly engaged in the acquisition, development, exploration, and production of oil and natural gas reserves in northeastern British Columbia, Canada.

Leucrotta Exploration Inc. (LXE) is down 1.61 per cent, trading at C$0.61 per share at 10:30 am ET.

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