Leucrotta Announces Q4 2019 Financial and Operating Results

April 29, 20204:00 AM Newsfil

Calgary, Alberta – LEUCROTTA EXPLORATION INC. (TSXV: LXE) (“Leucrotta” or the “Company”) is pleased to announce its financial and operating results for the three months and year ended December 31, 2019. All dollar figures are Canadian dollars unless otherwise noted. FINANCIAL RESULTS Three Months Ended December 31Year Ended December 31($000s, except per share amounts)20192018% Change20192018% Change Oil and natural gas sales6,8707,113(3)27,64532,048(14) Cash flow from operating activities2,0983,764(44)10,46516,249(36)   Per share – basic and diluted0.010.02(50)0.050.08(38) Adjusted funds flow (1)2,3162,875(19)10,26615,949(36)   Per share – basic and diluted0.010.01–0.050.08(38) Net loss6,1401613,7145,5294312,758   Per share – basic and diluted0.03–1000.03–100 Capital expenditures and acquisitions4,16010,665(61)14,99736,680(59) Proceeds on sale of equipment (2)–2,729(100)4,7672,72975 Working capital 1252,102(94) Common shares outstanding (000s)    Weighted average – basic and diluted200,525200,525–200,525200,520–    End of period – basic 200,525200,525–   End of period – fully diluted 226,646227,082–(1) See “Non-GAAP Measures” section. (2) The sale of equipment for proceeds of $4.8 million is exclusive of $2.7 million deposit received in Q4 2018. OPERATING RESULTS (1)Three Months Ended December 31Year Ended December 31 20192018% Change20192018% Change Daily production    Oil and NGLs (bbls/d)765                  850              (10)820                  954              (14)   Natural gas (mcf/d)12,392             14,115              (12)13,347             15,574              (14)   Oil equivalent (boe/d)2,830               3,202              (12)3,044               3,550              (14) Revenue    Oil and NGLs ($/bbl)51.26               44.78                1451.80               59.46              (13)   Natural gas ($/mcf)2.86                 2.78                  32.49                 2.00                25   Oil equivalent ($/boe)26.39               24.14                  924.88               24.74                  1 Royalties    Oil and NGLs ($/bbl)–                (0.60)            (100)–                 1.45            (100)   Natural gas ($/mcf)–                        –                   ––                        –                   –   Oil equivalent ($/boe)–                (0.16)            (100)–                 0.39            (100) Net operating expenses (2    Oil and NGLs ($/bbl)8.43                 5.95                428.34                 6.67                25   Natural gas ($/mcf)0.80                 0.78                  30.85                 0.82                  4   Oil equivalent ($/boe)5.77                 5.00                155.95                 5.40                10 Net transportation and marketing expenses (2    Oil and NGLs ($/bbl)1.35                 1.17                151.34                 1.54              (13)   Natural gas ($/mcf)1.46                 0.82                781.11                 0.52              113   Oil equivalent ($/boe)6.74                 3.92                725.25                 2.69                95 Operating netback (2    Oil and NGLs ($/bbl)41.48               38.26                  842.12               49.80              (15)   Natural gas ($/mcf)0.60                 1.18              (49)0.53                 0.66              (20)   Oil equivalent ($/boe)13.88               15.38              (10)13.68               16.26              (16) Depletion and depreciation ($/boe)(9.65)                (9.29)                  4(9.56)                (9.38)                  2Asset impairment ($/boe)(22.41)                        –              100(5.25)                        –              100General and administrative expenses ($/boe)(4.76)                (5.48)              (13)(4.30)                (4.05)                  6Share based compensation ($/boe)(0.20)                (0.84)              (76)(0.51)                (2.81)              (82)Gain on sale of assets ($/boe)–                        –                   –1.30                        –              100Finance expense ($/boe)(0.47)                (0.42)                12(0.36)                (0.26)                38Finance income ($/boe)0.04                 0.10              (60)0.03                 0.21              (86)Net loss ($/boe)(23.57)                (0.55)          4,185(4.97)                (0.03)        16,467(1) See “Frequently Recurring Terms” section. (2) See “Non-GAAP Measures” section. 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, 2019, which are available for review at www.sedar.com. PRESIDENT’S MESSAGE In Q4 2019, Leucrotta’s capital was spent predominantly on the upgrade of the recently acquired Two Rivers Facility and related infrastructure. All other capital was restricted pending completion and start-up of the facility in March 2020. Production remained relatively stable at 2,830 boe/d for the quarter as wells continue to outperform expectations and resulted in positive reserve revisions. Production increased in late March 2020 with the start-up of the Two Rivers facility and is estimated to average approximately 3,000 boe/d for 2020. Leucrotta maintained positive net working capital at end of Q4 2019 but is estimated to have approximately $5.0 million of debt at the end of Q1 2020. Capital spending will be limited on a go-forward basis until there is more clarity on commodity prices. Leucrotta will look to reduce debt through cash flow and sale of non-core properties and equipment. We look forward to reporting on further business developments in the near future.