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Leucrotta Exploration Second Quarter 2021 Results
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Leucrotta Exploration Inc. reported its Q2 2021 results.
All dollar figures are Canadian dollars unless otherwise noted.
Highlights:
- Increased adjusted funds flow (1) by 209% to $0.9 million in Q2 2021 from negative $0.8 million in Q2 2020.
- Closed the sale of certain natural gas assets located in Doe, BC for gross proceeds of $30.0 million (recognized as assets held for sale at March 31, 2021).
- June 30, 2021 adjusted working capital (1) balance of $57.0 million
Operations
In Q2 2021, Leucrotta successfully completed and tested its first Basal Montney well at Mica. The results (previously released June 15, 2021) were favourable and Leucrotta has now incorporated a Basal Montney well into its first pad.
Drilling of the four wells on the Mica pad commenced in late July with the wells expected to be completed and on-stream by mid Q4 2021. The Mica pad wells will be drilled with approximately 2,400 metre horizontal laterals and completed with approximately 130 frac stages per well. This compares to 1,500 metre horizontal lengths and 28-41 frac stages utilized during the delineation phase. Map outlining the four-well test pad in the Mica Development Area and related infrastructure is included below.
Engineering for the facility expansion to accommodate Leucrotta’s growth plans into 2022 and 2023 is well underway with initial design plans and cost estimates to be completed in Q4 2021.
Leucrotta will also perform an extended test of the Upper Montney at Mica in the next couple months to further prove out the large Montney resource in place by adding additional productive benches in the Montney.
Financial
Leucrotta ended Q2 2021 with $57.0 million of adjusted working capital and no debt. It has commenced the four-well pad at Mica as noted above and will proceed through its plans to produce >30,000 boe/d within its five-year time horizon. In Q4 2021 we anticipate releasing a full financial plan to achieve our goals in conjunction with finalizing initial cost estimates and confirming pad well results.
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