Leucrotta Announces Q3 2021 Financial and Operating ResultsCalgary, Alberta--(Newsfile Corp. - November 17, 2021) - LEUCROTTA EXPLORATION INC. (TSXV: LXE) ("Leucrotta" or the "Company") is pleased to announce its financial and operating results for the three and nine months ended September 30, 2021. All dollar figures are Canadian dollars unless otherwise noted.HIGHLIGHTSDrilled 4-well pad at Mica, BC expected to be completed in Q4 2021.September 30, 2021 adjusted working capital (1) balance of $45.5 million.Increased adjusted funds flow (1) by 231% to $1.9 million in Q3 2021 from $0.6 million in Q3 2020. FINANCIAL RESULTS Three Months Ended Nine Months Ended   September 30 September 30 ($000s, except per share amounts) 2021 2020 % Change 2021 2020 % Change   Oil and natural gas sales 6,954 5,841 19 23,854 17,071 40   Cash flow from operating activities 967 368 163 5,142 975 427     Per share - basic and diluted - - - 0.02 - 100   Adjusted funds flow (1) 1,939 586 231 6,595 548 1,103     Per share - basic and diluted 0.01 - 100 0.03 - 100   Net earnings (loss) 66,545 (2,525) (2,735) 66,120 (94,158) (170)     Per share - basic and diluted 0.27 (0.01) (2,800) 0.29 (0.47) (162)   Capital expenditures 13,981 647 2,061 18,215 13,321 37    Proceeds on sale of properties     and equipment - - - 30,000 8,206 266      Adjusted working capital (deficiency) (1) 45,503 (4,421) (1,129)     Common shares outstanding (000s)     Weighted average - basic 247,641 200,525 23 231,694 200,525 16     Weighted average - diluted 247,952 200,525 24 231,737 200,525 16         End of period - basic 247,641 200,525 23     End of period - fully diluted 290,111 218,527 33  (1) See "Non-GAAP Measures" section. Three Months Ended Nine Months Ended OPERATING RESULTS (1) September 30 September 30 2021 2020 % Change 2021 2020 % Change    Daily production (2)     Oil and condensate (bbls/d) 299 542 (45) 390 648 (40)     Other NGLs (bbls/d) 26 248 (90) 34 278 (88)     Oil and NGLs (bbls/d) 325 790 (59) 424 926 (54)     Natural gas (mcf/d) 8,953 13,739 (35) 10,840 14,036 (23)     Oil equivalent (boe/d) 1,817 3,080 (41) 2,231 3,266 (32)     Oil and natural gas sales     Oil and condensate ($/bbl) 81.52 45.19 80 72.70 36.87 97     Other NGLs ($/bbl) 34.91 22.95 52 30.68 20.04 53     Oil and NGLs ($/bbl) 77.74 38.21 103 69.34 31.81 118     Natural gas ($/mcf) 5.62 2.42 132 5.35 2.34 129     Oil equivalent ($/boe) 41.59 20.62 102 39.16 19.08 105     Royalties     Oil and NGLs ($/bbl) 11.61 1.93 502 9.02 1.49 505     Natural gas ($/mcf) 0.50 0.06 733 0.41 0.05 720     Oil equivalent ($/boe) 4.55 0.76 499 3.69 0.63 486     Net operating expenses (3)     Oil and NGLs ($/bbl) 9.17 10.19 (10) 9.26 9.87 (6)     Natural gas ($/mcf) 0.86 1.04 (17) 0.87 0.99 (12)     Oil equivalent ($/boe) 5.89 7.24 (19) 6.00 7.05 (15)    Transportation and marketing expenses Oil and NGLs ($/bbl) 0.74 0.32 131 0.80 0.84 (5) Natural gas ($/mcf) 1.23 1.45 (15) 1.40 1.56 (10) Oil equivalent ($/boe) 6.20 6.53 (5) 6.93 6.95 (-)     Operating netback (3)     Oil and NGLs ($/bbl) 56.22 25.77 118 50.26 19.61 156     Natural gas ($/mcf) 3.03 (0.13) (2,431) 2.67 (0.26) (1,127)     Oil equivalent ($/boe) 24.95 6.09 310 22.54 4.45 407     Depletion and depreciation ($/boe) (7.67) (10.08) (24) (7.94) (8.82) (10) Asset (impairment) reversal ($/boe) 397.21 - 100 109.04 (98.22) (211) General and administrative expenses ($/boe) (6.78) (3.94) 72 (6.96) (3.77) 85 Share based compensation ($/boe) (2.26) (0.64) 253 (2.59) (0.31) 735 Gain on sale of equipment ($/boe) - - - - 1.68 (100) Finance expense ($/boe) (0.63) (0.33) 91 (0.57) (0.25) 128 Finance income ($/boe) 0.38 - 100 0.29 - 100 Realized loss on risk management contracts ($/boe) (3.72) - 100 (2.35) - 100 Unrealized loss on risk management contracts ($/boe) (3.67) - 100 (2.97) - 100 Deferred income tax recovery ($/boe) 0.20 - 100 0.06 - 100 Net earnings (loss) ($/boe) 398.01 (8.90) (4,572) 108.55 (105.24) (203)  See "Oil and Gas Terms" section.See "Product Types" section.See "Non-GAAP Measures" section.Selected financial and operational information outlined in this news release should be read in conjunction with Leucrotta's unaudited condensed interim financial statements and related Management's Discussion and Analysis ("MD&A") for the three and nine months ended September 30, 2021, which are available for review under the Company's profile on The System for Electronic Document Analysis and Retrieval ("SEDAR") at www.sedar.com. UPDATEOperations In Q3 2021, Leucrotta successfully drilled its 4-well Montney test pad at Mica and commenced completing these wells in early Q4 2021. The Mica pad wells were drilled with approximately 2,400 metre horizontal laterals and completed with approximately 130 frac stages per well. This compares to 1,500 metre horizontal lengths and 28-41 frac stages utilized during the delineation phase. Testing of the wells will be completed in November and wells will start producing soon thereafter.The drilling of the initial pad is the first step in our long-term plan to develop our existing land base, with an intermediate goal of achieving production of 30,000 boe/d within the next 5 years.Financial Leucrotta ended Q3 2021 with $45.5 million of adjusted working capital and no debt. We anticipate that Leucrotta will end 2022 with no debt and >$25 million of adjusted working capital.OIL AND GAS TERMSThe Company uses the following frequently recurring oil and gas industry terms in the MD&A:Liquidsbbls BarrelsBbl/d Barrels per dayNGLs Natural gas liquids (includes condensate, pentane, butane, propane, and ethane)Condensate Pentane and heavier hydrocarbons       Natural Gas Mcf Thousands of cubic feetMcf/d Thousands of cubic feet per dayMMbtu Million of British thermal unitsMMbtu/d Million of British thermal units per day      Oil Equivalent Boe Barrels of oil equivalentBoe/dBarrels of oil equivalent per day Disclosure provided herein in respect of a boe may be misleading, particularly if used in isolation. A boe conversion rate of six thousand cubic feet of natural gas to one barrel of oil equivalent has been used for the calculation of boe amounts in the MD&A. This boe conversion rate is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.NON-GAAP MEASURESThis news release refers to certain financial measures that are not determined in accordance with IFRS (or "GAAP"). This news release contains the terms "adjusted funds flow", "adjusted funds flow per share", "adjusted working capital (deficiency), "operating netback" and "net operating expenses" which do not have any standardized meaning prescribed by GAAP and therefore may not be comparable to similar measures used by other companies. The Company uses these measures to help evaluate its performance. For additional information relating to Non-GAAP Measures please refer to the Company's MD&A for the three and nine months ended September 30, 2021, which is available under the Company's profile on SEDAR at www.sedar.com.Management uses adjusted funds flow (used) to analyze performance and considers it a key measure as it demonstrates the Company's ability to generate the cash necessary to fund future capital investments and abandonment obligations and to repay debt, if any. Adjusted funds flow (used) is a non-GAAP measure and has been defined by the Company as cash flow from (used in) operating activities excluding the change in non-cash working capital related to operating activities, expenditures on decommissioning obligations, and transaction costs on property dispositions. The Company also presents adjusted funds flow (used) per share whereby amounts per share are calculated using weighted average shares outstanding, consistent with the calculation of net earnings (loss) per share. Adjusted funds flow (used) is reconciled from cash flow from (used in) operating activities under the heading "Cash Flow From Operations and Adjusted Funds Flow" in the MD&A. Management uses adjusted working capital (deficiency) as a measure to assess the Company's financial position. Adjusted working capital (deficiency) includes current assets less current liabilities excluding the effects of any current portion of risk management contracts. Adjusted working capital (deficiency) is reconciled to working capital (deficiency) under the heading "Liquidity and Capital Resources" in the MD&A.Management considers operating netback an important measure as it demonstrates its profitability relative to current commodity prices. Operating netback, which is calculated as average unit sales price less royalties, net operating expenses, and transportation and marketing expenses, represents the cash margin for every barrel of oil equivalent sold. Operating netback per boe is reconciled to net earnings (loss) per boe under the heading "Operating Netback" in the MD&A.Net operating expenses is calculated as operating expenses less processing revenues. Management uses net operating expenses to determine the current periods' cash cost of operating expenses less processing revenue and net operating expenses per boe is used to measure operating efficiency on a comparative basis. The measure approximates the Company's operating expenses relative to its produced volumes by excluding third party operating costs.PRODUCT TYPESThe Company uses the following references to sales volumes in this news release:Natural gas refers to shale gasOil and condensate refers to condensate, light and medium crude oil, and tight oil combinedOther NGLs refers to butane, propane and ethane combinedOil and NGLs refers to light and medium crude oil, tight oil, and NGLs combinedOil equivalent refers to the total oil equivalent of shale gas, light and medium crude oil, tight oil, and NGLs combined, using the conversion rate of six thousand cubic feet of shale gas to one barrel of oil equivalent as described above. The following is a complete breakdown of sales volumes for applicable periods by specific product types of shale gas, light and medium crude oil, tight oil, and NGLs: Sales Volumes by Product Type Q1 2021 Q2 2021 Q3 2021 YTD Q3 2021    Condensate (bbls/d) 124 79 68 90 Other NGLs (bbls/d) 41 34 26 34 NGLs (bbls/d) 165 113 94 124    Light and medium crude oil (bbls/d) - - - - Tight oil (bbls/d) 354 318 231 300 Condensate (bbls/d) 124 79 68 90 Oil and condensate (bbls/d) 478 397 299 390 Other NGLs (bbls/d) 41 34 26 34 Oil and NGLs (bbls/d) 519 431 325