I Guess Leucrotta Was the Montney Junior to Watch in 2017
Highlights - Leucrotta Announces a Significant Increase in Production and a Material Extension to the Boundaries of Company's Lower Montney Turbidite Light Oil Resource Play CALGARY, ALBERTA--(Marketwired - April 4, 2017) - Leucrotta Exploration Inc. ("Leucrotta" or the "Company") (TSX VENTURE:LXE) is pleased to announce it has completed its infrastructure project to tie-in 4 previously drilled delineation wells and has drilled 3 additional step-out /delineation wells that materially further extend the productive boundaries of the Company's Lower Montney Turbidite Light Oil Resource Play (see Company map in Appendix 1). PRODUCTION As a result of the tie-in of four wells, Leucrotta has increased production to over 3,000 boepd (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. Leucrotta completed the main gathering lines to connect 3 Lower Montney Turbidite wells to its plant in Q117. The Lower Montney wells are comprised of 2 wells in the oil window (8-22 and 8-18) and one in the liquids-rich gas window (13-19). DRILLING EXTENSIONS AND DELINEATION OF THE MONTNEY LOWER TURBIDITE LIGHT OIL POOL Leucrotta has recently drilled three wells that have materially extended and delineated the boundaries of the Lower Montney Turbidite Light Oil Resource Play. The 8-4 well was drilled 5.2 km north and west of the 8-22 well noted above. The well encountered light oil in the Lower Montney turbidite zone. The well was tested over a 7 day period with an average production of 1060 boepd (524 boepd light oil and condensate, 2.9 mmcf/d gas and 52 boepd of ngls) (54% oil and liquids).(4) Given the magnitude of the step-out from the 8-22, this well materially extends the known productive boundary of the light oil field through a significant portion of Leucrotta-owned Montney acreage to the north. 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 boepd (221 boepd light oil and condensate, 1.8 mmcf/d gas and 32 boepd of ngls, 46% oil and liquids).(4) This well confirms the mapped boundaries of the light oil window to be further south than Leucrotta had originally mapped. For Lower Montney light oil wells, GLJ assigned, on average, 669 mboes (32% oil and ngls) of ultimate recovery per well. Using Leucrotta's current estimated drill and complete costs (before pad development) of $3.8 million, GLJ's average production curve, and GLJ's January 2017 Price Forecast, the average Lower Montney Turbidite light oil well will generate a rate of return of 91% and a net present value (NPV10) of $7.1 million.(5) For Lower Montney liquids-rich gas wells, GLJ assigned, on average, 1055 mboes (21% oil and ngls) of ultimate recovery per well. Using Leucrotta's current estimated drill and complete costs (before pad development) of $3.8 million, GLJ's average production curve, and GLJ's January 2017 Price Forecast, the average Lower Montney Turbidite liquids-rich gas well will generate a rate of return of 223% and a net present value (NPV10) of $8.7 million.(5) Leucrotta currently owns approximately 105 net sections of land within its mapped boundaries of the Lower Montney Turbidite play. Current data suggests there are approximately 80 net sections in the oil window and 25 net sections in the liquids-rich gas window. Based on up to 8 wells per section in the oil window and 4 wells per section in the liquids-rich window, Leucrotta has a potential drilling inventory of 640 Lower Montney Turbidite oil wells and 100 Lower Montney Turbidite liquids-rich gas wells.(6) https://m.marketwired.com/press-release/leucrotta-announces-significant-increase-production-material-extension-boundaries-companys-2207801.html