LEUCROTTA EXPLORATION INC. (TSX VENTURE:LXE) ("Leucrotta" or the "Company") is pleased to announce its financial and operating results for the three months and year ended December 31, 2016. All dollar figures are Canadian dollars unless otherwise noted.
Selected financial and operational information outlined in this news release should be read in conjunction with Leucrotta's audited financial statements and related Management's Discussion and Analysis ("MD&A") for the year ended December 31, 2016, which are available on SEDAR at www.sedar.com.
In Q4 2016 and early Q1 2017, Leucrotta completed its infrastructure project to tie-in four previously drilled delineation wells and has drilled three additional step-out/delineation wells that materially extend the productive boundaries of the Company's Lower Montney Turbidite Light Oil Resource Play.
As a result of the tie-in of four wells, Leucrotta increased production to over 3,000 boe/d (25% oil and NGLs). This excludes two new Montney wells (8-4 and 12-06) that are tested but not tied-in and one well (13-07) that is temporarily shut-in due to third party restrictions.
The three step-out/delineation wells materially extended the productive boundaries of the Lower Montney Turbidite Light Oil Resource Play. The 8-4 well was drilled 5.2 km north and west of the previously drilled 8-22 well. The well encountered light oil in the Lower Montney Turbidite zone and was tested over a 7-day period with an average production of 1,060 boe/d(1). The 12-06 well was drilled 11.7 kms south of the 13-07 oil well and 4.4 kms north of the 13-19 liquids-rich gas well. The well encountered oil pay and was tested over a 7-day period with average production of 550 boe/d(1). The third step-out /delineation well was a vertical stratigraphic test drilled at 4-30 north of the Peace River. Located 7.4 km northwest of the 8-4 well, the well was logged and cored in the Upper, Middle and Lower Montney. The well encountered 55 metres of pay in the Lower Montney with core porosities on par with the core porosities in the 13-7 well. The 4-30 vertical well confirms the geological mapping and oil charge of a major northern extension of the Lower Montney Turbidite Light Oil Resource Play.
Analysis of Upper and Middle Montney in the 4-30 wellbore showed potential as exploratory future targets.
Subsequent to year-end, Leucrotta signed agreements to acquire an additional 18.5 sections of land located in its core Doe/Mica Montney area and initiated a bought-deal financing for gross proceeds of $80 million to fund the acquisition and a portion of the future capital programs. Leucrotta has estimated that it will have approximately $50 million of cash and no debt on completion of the financing and funding the land acquisitions.
On a go forward basis, Leucrotta will continue its capital program focused primarily on the delineation and development of its Doe/Mica core area.
Leucrotta is an oil and natural gas company, actively engaged in the acquisition, development, exploration, and production of oil and natural gas reserves in northeastern British Columbia, Canada.
SOURCE: Leucrotta Exploration Inc.
The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.