Leucrotta Exploration announces gas processing and Mica Battery funding arrangements with NorthRiver Midstream

2 minute read
17 March 2022

On March 17, 2022, Leucrotta Exploration Inc. ("Leucrotta") announced that it had entered into a 10 year gas processing agreement with NorthRiver Midstream Inc. ("NRM") to provide 50 mmcf/d of firm processing capacity at NRM's West Doe gas processing facility. 

The agreement commences after the construction of the battery facility at Mica ("the Mica Battery") and is subject to a ramp-up period. Leucrotta will also hold certain rights to additional firm processing capacity that, along with Leucrotta's owned 25 mmcf/d processing facility at Doe, will allow Leucrotta to reach 25,000 boepd in the Mica area.

Concurrent with this agreement, NRM has agreed to provide up to $55 million of capital funding that Leucrotta will use to construct the Mica Battery. The Mica Battery will consist of facilities for in-field processing of oil, gas and water and will deliver gas to NRM's West Doe gas processing facility. The Mica Battery will have an initial capacity of 60 mmcf/d expandable to 90 mmcf/d with added compression.

Gowling WLG advised Leucrotta with respect to these agreements with a team that included Lorne Rollheiser, Greg Peterson, Frank Sur and Adriana Da Silva Bellini.

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