Lycos to sell $60M in Alberta assets, pay dividend

Executive Summary

• Lycos Energy Inc. entered a definitive Purchase and Sale Agreement to sell Alberta assets for cash consideration of $60 million, with closing expected around Oct. 15, 2025.
• Net proceeds will be allocated to debt reduction ($9 million) and a cash distribution to shareholders of $0.90 per common share (≈$47.9 million), leaving the company with < $1 million net debt and a $50 million credit facility.
• The TSX Venture Exchange conditionally accepted Lycos’s notice of intention to commence a Normal Course Issuer Bid (NCIB) to repurchase up to 4,661,208 shares (10% of public float) starting Nov. 3, 2025.

Key Details

• Transaction Value: $60.0 million cash consideration (pre‑closing adjustments).
• Closing Timeline: Effective date Sept. 1, 2025; expected closing on or about Oct. 15, 2025, subject to customary conditions and TSX‑V approval.
• Asset Profile:
• Producing ~940 bbl/d (≈1,700 boe/d post‑sale).
• Proved developed producing reserves: 395 Mbbl (as of Dec. 31, 2024).
• Booked drilling locations: 21 net.
• Financial Metrics:
• 3.4× annualized Net Operating Income.
• $63,830 per flowing boe.
• $25.80 per boe of proved reserves (2,326 Mbbl).
• $19.54 per boe of proved + probable reserves (3,070 Mbbl).
• Proceeds Allocation:
• Debt repayment: ~$9.0 million to reduce Q4 net debt below $1.0 million.
• Shareholder cash distribution: ~$47.9 million (~$0.90 per share) as a return of capital via reduction of stated capital.
• Remaining proceeds for general corporate purposes (working capital, continued operations).
• Credit Facility: Existing $50 million facility remains unchanged post‑sale.
• Advisers: National Bank Financial Inc. – exclusive financial adviser; Stikeman Elliott LLP – legal counsel.
• NCIB Details:
• Maximum repurchase: up to 4,661,208 common shares (10% of public float).
• Commencement: Nov. 3, 2025; termination: earlier of Nov. 2, 2026 or when max shares purchased.
• Broker: NBF will act as designated broker under an automatic share purchase plan, allowing purchases even during typical blackout periods, subject to regulatory compliance.
• Shareholder Approval: Special meeting scheduled for Nov. 13, 2025 to approve reduction of stated capital by $47.9 million and authorize the cash distribution.

Notable Quotes

(No direct quotes were provided in the release.)