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To: Goose94 who wrote (48280)

11/22/2018 6:14:36 AM

From: Goose94

Read Replies (1) | Respond to of 202740

Leucrotta Exploration (LXE-V) Nov 22, '18 is pleased to announce the following update:

LOWER MONTNEY DELINEATION

Leucrotta drilled and completed a Lower Montney horizontal multi-frac well at 5-19-82-14W6 ("5-19") to further delineate Leucrotta's assets northwest of Mica and north of the Peace River. The well was considered a major step-out given it was approximately 4 miles from any production or tests in the Lower Montney and helps confirm productivity in a material land block owned by Leucrotta north of the Peace River. The well was tested on clean-up for 9 days and had an average flow rate over the last three days of the test of 1,082 boe/d comprised of 458 bbl/d of 41 API light oil, 3.2 mmcf/d of sweet gas and estimated potential NGL (C3+) recovery of 85 - 168 boe/d depending on gas plant efficiency. The well was above expectation and adds significant development potential to Leucrotta.

Leucrotta also drilled and completed a Lower Montney horizontal multi-frac well at 1-24-81-14W6 to further delineate Leucrotta's asset in the Mica area of British Columbia. The well was considered a minor step-out and is in close proximity to several highly productive wells. The well was tested on clean-up for 31 days and had a stabilized 5 day average flow rate of 440 boe/d comprised of 110 bbl/d of 42 API light oil, 1.7 mmcf/d of sweet gas and estimated potential NGL (C3+) recovery of 45 - 93 boe/d depending on gas plant efficiency. Due to the rate being below expectation, Leucrotta performed various additional analysis on the well and determined that a large portion of the well is not contributing and that several ports during completion did not open. Given many prolific Lower Montney wells in the area, Leucrotta believes the result is not indicative of future wells.

Based on the 5-19 result, Leucrotta has substantially completed the delineation of the Lower Montney with approximately 140 net sections mapped where productivity has been established and is now development-ready. An additional 50 sections of land to the west of 5-19 mapped in the Lower Montney remain untested and represent future potential.

UPPER MONTNEY AND BASAL MONTNEY DELINEATION

Due to the success of the A10-08-83-16W6 Upper Montney light oil well at Two Rivers (previously announced test rate of 1,842 boepd comprised of 685 bopd, 5.6 mmcf/d of gas and estimated NGL recovery of 224 boepd), Leucrotta drilled a major step-out well south of the Peace River in a similar porosity trend to establish productivity closer to Leucrotta's infrastructure. Details of the results will be available early in the new year.

Leucrotta is also drilling a vertical strat test to evaluate the Basal Montney to confirm petrophysical properties in a large mapped area on Leucrotta's land base. If successful, Leucrotta plans to drill a horizontal well into this zone in 2019 to establish productivity. Leucrotta has been very encouraged by productivity in this zone by other operators and is looking forward to the results.

BOE Conversions

BOE's may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1 Bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Production Rates

Any references to peak rates, test rates, IP30, IP90, IP180 or initial production rates or declines are useful for confirming the presence of hydrocarbons, however, such rates and declines are not determinative of the rates at which such wells will commence production and decline thereafter and are not indicative of long term performance or ultimate recovery. IP30 is defined as an average production rate over 30 consecutive days, IP90 is defined as an average production rate over 90 consecutive days and IP180 is defined as an average production rate over 180 consecutive days. Readers are cautioned not to place reliance on such rates in calculating aggregate production for the Corporation.

Test Rates

The 5-19-82-14W6 well was production tested for 7 days after the original cleanup and produced at an average rate of 920 boe/d (44% gas, 56% Oil and Condensate) over that period, excluding load fluid and energizing fluid. At the end of the test, flowing wellhead pressure and production rates were stable.

The 1-24-81-14W6 well was production tested for 12 days after the original cleanup and produced at an average rate of 540 boe/d (66% gas, 34% Oil and Condensate) over that period, excluding load fluid and energizing fluid. At the end of the test, flowing wellhead pressure and production rates were declining.

The A10-08-83-16W6 well was production tested for 6 days after the original cleanup and produced at an average rate of 1,100 boe/d (48% gas, 52% Oil and Condensate) over that period, excluding load fluid and energizing fluid. At the end of the test, flowing wellhead pressure and production rates were stable.

A pressure transient analysis or well-test interpretation has not been carried out on these wells and thus certain of the test results provided herein should be considered to be preliminary until such analysis or interpretation has been completed. Test results and initial production rates disclosed herein may not necessarily be indicative of long term performance or of ultimate recovery.

Abbreviations

bbl	barrel
bbl/d	barrels per day
mmcf	million cubic feet
mmcf/d	million cubic feet per day
boe	barrel of oil equivalent
boe/d	barrel of oil equivalent per day

For further information, please contact:

LEUCROTTA EXPLORATION INC.
700, 639 -5th Ave SW
Calgary, Alberta T2P 0M9
www.leucrotta.ca

Phone: (403) 705-4525
Fax: (403) 705-4526

Robert Zakresky
President and Chief Executive Officer
Phone: (403) 705-4525

Nolan Chicoine
Vice President, Finance and Chief Financial Officer
Phone: (403) 705-4525