Lycos Energy Inc. Announces the Completion of Previously Announced $60.0 Million Asset Sale

Executive Summary

• Lycos Energy Inc. closed the sale of assets in Alberta for cash consideration of $60.0 million.
• Approximately $9.0 million of net proceeds will be used to repay debt, and about $47.9 million will be returned to shareholders as a cash distribution of $0.90 per common share (subject to shareholder approval of a capital reduction).
• The company’s existing $50.0 million credit facility remains unchanged; remaining proceeds will fund general corporate purposes and working‑capital needs.

Key Details

• Asset Sale: Completed under the Purchase and Sale Agreement dated October 7, 2025; assets located in Lindbergh, Moose Lake, and Fishing Lake areas of Alberta.
• Cash Consideration: $60.0 million (subject to customary closing adjustments).
• Debt Repayment: ~​$9.0 million of net proceeds earmarked for repayment of existing debt, strengthening the balance sheet.
• Credit Facility: Existing $50.0 million facility will stay in place on the same terms after the sale.
• Return of Capital: Approximately $47.9 million to be returned to shareholders as a cash distribution of $0.90 per common share.
• Special Meeting: To be held November 13, 2025; shareholders will vote on a special resolution to reduce stated capital by $47.9 million, enabling the distribution to be treated as a return of capital for tax purposes. If not approved, the payout will be classified as a special dividend (eligible dividend).
• Use of Remaining Proceeds: Any balance after debt repayment and shareholder return will support general corporate purposes, including ongoing operations and working‑capital requirements.
• Future Updates: Lycos will provide an operational update on or before November 18, 2025 regarding development plans for the remainder of 2025 and into 2026.

Notable Quotes

(No direct quotes were provided in the release.)