Leucrotta Increases Cash and Working Capital to $83.5 Million

- August 26th, 2015

Leucrotta Exploration (TSXV:LXE) announced its financial and operating results for the three and six month period ended June 30, which showed an increase in cash and working capital to $83.5 million by sale of assets.

Leucrotta Exploration (TSXV:LXE) announced its financial and operating results for the three and six month period ended June 30, which showed an increase in cash and working capital to $83.5 million by sale of assets.
As quoted in the press release:

In Q2 2015, Leucrotta sold one of its producing properties for a net $79.3 million in cash while retaining 172 net sections of Montney lands plus all critical infrastructure for its Montney development including the 100% owned and operated 25 mmcf/d sweet gas plant, the acid gas injection well needed for future sour expansion, and the pipeline connection to Alliance Pipeline. The sold property was producing approximately 1,300 boe/d. The sale resulted in cash and working capital increasing to $83.5 million as at the end of Q2 2015 not including the newly constructed gas plant equipment held for sale (approximately $15 million).
Leucrotta has also recently signed agreements, pending formal assignment, to reduce its 5 year commitment on Alliance Pipeline to approximately half of the original amount and pushing out most of the year one commitment to October 2016.

Highlights:

  • Increased cash and working capital to $83.5 million by sale of assets for $79.3 million
  • Increased Montney land position in the Greater Dawson area to 172 net sections

Subsequent to quarter-end:

  • Reduced pipeline commitments, pending formal assignment, to increase financial and capital flexibility
  • Approved a capital budget of $20 million for the remainder of 2015 and Q1 2016
  • Completed the Stoddart facilities allowing the previously drilled and tested Baldonnel light oil well to commence production

Click here to read the full Leucrotta Exploration (TSXV:LXE) press release.

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