Lycos Energy Inc. Announces Strategic Acquisition of Durham Creek Exploration Ltd. and $25 Million Equity Financing
CALGARY, Alberta, Sept. 13, 2023 (GLOBE NEWSWIRE) -- Lycos Energy Inc. ("Lycos" or the "Company") (TSXV: LCX) is pleased to announce that it has entered into a definitive agreement (the "Acquisition Agreement") today to acquire Durham Creek Exploration Ltd. ("DCEL"), a privately-held, arm's length, heavy oil producer, by way of a plan of arrangement for total consideration, prior to adjustments, of $22.5 million (the "Acquisition"), consisting of $12.5 million in cash and 2.8 million common shares of Lycos (“Lycos Shares”) at a deemed price of $3.55 per Lycos Share.
- Increases Tier 1 Mannville inventory (Rex, Waseca, GP and Cummings) by 77% to 55 total net locations.
- Tier 1 locations have an expected payout period of less than 6 months and an NPV-10% of $5.5 million(1).
- National Bank Financial Inc. is acting as exclusive financial advisor to Lycos with respect to the Acquisition.
- Stikeman Elliott LLP is acting as legal counsel to Lycos with respect to the Acquisition and the Offering.