Transaction Overview
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Seller: Lycos Energy Inc.
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Purchaser: Arm’s length third party (unnamed)
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Transaction Type: Sale of certain assets located in the Lindbergh, Moose Lake, and Fishing Lake areas of Alberta
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Consideration: $60.0 million cash, subject to customary closing adjustments
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Agreement Date: October 7, 2025
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Effective Date: September 1, 2025
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Expected Closing: On or about October 15, 2025
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Regulatory Approval: Subject to TSX Venture Exchange (TSX-V) approval as a Reviewable Transaction
- Press Release: Lycos Energy Inc. Announces $60.0 Million Asset Sale, Distribution of Proceeds to Shareholders and Normal Course Issuer Bid
Assets Sold
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Production: ~940 barrels of oil per day (bbl/d)
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Reserves:
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Proved Developed Producing (PDP): 395 Mbbl (per Sproule Associates Ltd., Dec 31, 2024)
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Total Proved (1P): 2,326 Mbbl
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Proved + Probable (2P): 3,070 Mbbl
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Drilling Locations: 21.0 net booked drilling locations
Valuation Metrics
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3.4× annualized net operating income
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$63,830 per flowing boe
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$25.80 per boe (Proved reserves)
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$19.54 per boe (Proved + Probable reserves)
Use of Proceeds
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Debt Reduction: ~$9.0 million applied to reduce net debt to < $1.0 million.
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Shareholder Distribution: ~$47.9 million returned to shareholders as a $0.90 per share Sale Dividend (treated as a return of capital).
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Remainder: General corporate purposes and working capital.
Post-Sale Pro Forma
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Production: ~1,700 boe/d (97% crude oil) in Central Alberta (Swimming, Wildmere, Viking Kinsella areas).
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Net Debt: < $1.0 million
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Credit Facility: $50.0 million (unchanged terms)
Advisors
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Financial Advisor: National Bank Financial Inc. (NBF)
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Legal Counsel: Stikeman Elliott LLP
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Fairness Opinion: Provided by NBF, confirming transaction is fair from a financial standpoint.