- 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 31 | Year Ended December 31 | |||||
($000s, except per share amounts) | 2020 | 2019 | % Change | 2020 | 2019 | % Change |
Oil and natural gas sales | 6,515 | 6,870 | (5) | 23,586 | 27,645 | (15) |
Cash flow from operating activities | 212 | 2,098 | (90) | 1,187 | 10,465 | (89) |
Per share – basic and diluted | – | 0.01 | (100) | 0.01 | 0.05 | (80) |
Adjusted funds flow (1) | 807 | 2,316 | (65) | 1,355 | 10,266 | (87) |
Per share – basic and diluted | – | 0.01 | (100) | 0.01 | 0.05 | (80) |
Net loss | 16,697 | 6,140 | 172 | 110,855 | 5,529 | 1,905 |
Per share – basic and diluted | 0.08 | 0.03 | 167 | 0.55 | 0.03 | 1,733 |
Capital expenditures and acquisitions | 395 | 4,160 | (91) | 13,716 | 14,997 | (9) |
Proceeds on sale of properties and equipment (2) | – | – | – | 8,206 | 4,767 | 72 |
Adjusted working capital (deficiency) (1) | (5,807) | 125 | (4,746) | |||
Common shares outstanding (000s) | ||||||
Weighted average – basic and diluted | 200,525 | 200,525 | – | 200,525 | 200,525 | – |
End of period – basic | 200,525 | 200,525 | – | |||
End of period – fully diluted | 214,132 | 226,646 | (6) |
(1) See “Non-GAAP Measures” section.
(2) The sale of equipment for proceeds of $4.8 million in 2019 is exclusive of $2.7 million deposit received in Q4 2018.
OPERATING RESULTS (1) | Three Months Ended December 31 | Year Ended December 31 | ||||
2020 | 2019 | % Change | 2020 | 2019 | % Change | |
Daily production | ||||||
Oil and NGLs (bbls/d) | 645 | 765 | (16) | 856 | 820 | 4 |
Natural gas (mcf/d) | 13,508 | 12,392 | 9 | 13,903 | 13,347 | 4 |
Oil equivalent (boe/d) | 2,897 | 2,830 | 2 | 3,173 | 3,044 | 4 |
Revenue | ||||||
Oil and NGLs ($/bbl) | 43.06 | 51.26 | (16) | 33.94 | 51.80 | (34) |
Natural gas ($/mcf) | 3.18 | 2.86 | 11 | 2.55 | 2.49 | 2 |
Oil equivalent ($/boe) | 24.44 | 26.39 | (7) | 20.31 | 24.88 | (18) |
Royalties | ||||||
Oil and NGLs ($/bbl) | 3.09 | – | 100 | 1.79 | – | 100 |
Natural gas ($/mcf) | 0.10 | – | 100 | 0.06 | – | 100 |
Oil equivalent ($/boe) | 1.14 | – | 100 | 0.75 | – | 100 |
Net operating expenses (2) | ||||||
Oil and NGLs ($/bbl) | 10.46 | 8.43 | 24 | 9.98 | 8.34 | 20 |
Natural gas ($/mcf) | 1.06 | 0.80 | 33 | 1.01 | 0.85 | 19 |
Oil equivalent ($/boe) | 7.29 | 5.77 | 26 | 7.10 | 5.95 | 19 |
Net transportation and marketing expenses (2) | ||||||
Oil and NGLs ($/bbl) | 0.37 | 1.35 | (73) | 0.75 | 1.34 | (44) |
Natural gas ($/mcf) | 1.37 | 1.46 | (6 | 1.51 | 1.11 | 36 |
Oil equivalent ($/boe) | 6.45 | 6.74 | (4) | 6.83 | 5.25 | 30 |
Operating netback (2) | ||||||
Oil and NGLs ($/bbl) | 29.14 | 41.48 | (30) | 21.42 | 42.12 | (49 |
Natural gas ($/mcf) | 0.65 | 0.60 | 8 | (0.03) | 0.53 | (106 |
Oil equivalent ($/boe) | 9.56 | 13.88 | (31) | 5.63 | 13.68 | (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 ($/boe) | – | – | – | 1.30 | 1.30 | – |
Loss on onerous contract ($/boe) | (7.88 | – | 100 | (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 ($/boe) | 0.55 | – | 100 | 0.13 | – | 100 |
Net loss ($/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.