Leucrotta Exploration Inc. announced that it has entered into an agreement with a syndicate of underwriters for a $20.0 million bought deal financing by way of a short form prospectus offering. The Company will be conducting a concurrent non-brokered private placement of $2.0 million flow- through units of the Company. The Company has also entered into a definitive agreement with an Alberta based publicly traded oil and gas company in connection with disposition of its non-strategic lands comprising 5% of Leucrotta's Montney land base for an aggregate consideration of $30.0 million. The Company intends to use a portion of the combined proceeds from the Financing and the Asset Sale to advance the initiation of a Pad Development program in the High GOR (gas to oil ratio) Light Oil Window of the Lower Montney at Mica. The acceleration of the Mica Project will transform Leucrotta into a high-growth pure play Montney entity with one of the contiguous positions in the Montney light oil window. The funding and expected debt capacity on successful drilling of the Mica Project is expected to create cash flow sustainability, and management estimates that the Mica Project could increase Leucrotta's production to 15,000 - 20,000 boepd within three years. The New Funding Kickstarts the Mica Development while Minimizing Dilution: The Asset Sale helps minimize dilution while only disposing of approximately 5% of the Company's Montney acreage; Added equity allows Leucrotta to be debt-free well into 2022 when production is estimated by management to be materially higher; Exit 2021 production is expected to exceed 4,500 boepd (27% oil and condensate) with approximately $20.0 million cash remaining; and Future capital can be accessed by adding a prudent amount of debt as cash flow grows. Highly Economic Drilling Inventory in the Mica High GOR Light Oil Window: On full pad development, new wells are expected to generate an IRR of greater than 100% and a payout of approximately one year based on commodity pricing of WTI USD 50.00/bbl; AECO CAD$2.25/GJ; FX 1.28 CAD/USD; and The production from the Mica Project is estimated to increase to over 30,000 boepd within 5-year time frame utilizing only 30 of the 100 sections of delineated lands (over 240 total Montney sections). The Mica Project is anticipated to start with an initial 3-4 well pad in 2021 using modern technology that will incorporate 2,400 metre horizontal laterals, the latest frac designs, and increased frac intensity. Wells will be produced through existing infrastructure and will be the basis for an accelerated development from 2022 forward. The Mica Project was modeled solely on the Lower Montney horizon, however, Leucrotta will production test both the Basal and Upper Montney horizons at Mica in 2021 to determine if the Company can enhance economics even further through a stacked development program. The accelerated development (expanded Pad Development) is expected to take production to over 30,000 boepd and incorporate existing Leucrotta infrastructure, expanding current infrastructure and utilizing available third-party infrastructure where appropriate. Leucrotta estimates it will take approximately five years to reach its production targets. The Mica Project has the following characteristics that will enhance economics and allow for ease of development: Initial Target (Lower Montney) contains light sweet oil (39-42 API) and sweet liquids-rich natural gas; Low water rates and high GORs limit artificial lift requirements; Egress in area is excellent with access to various competing pipelines for oil, gas and liquids; Proximity allows for access to various markets for gas and liquids including potential markets in Asia for LNG and NGLs; Surface access is excellent with lands being predominantly farm land with an established road system; Access to services is also very good given proximity to Dawson Creek, Fort St. John and Grand Prairie; and A significant portion of the initial infrastructure and field gathering system is already in place which will reduce infrastructure capital required.