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Lycos Energy Inc Announces 2025 Budget, Operations Update and Disposition of Non-Core Assets
Calgary, Alberta--(Newsfile Corp. - January 6, 2025) - Lycos Energy Inc.  (TSXV: LCX) (" L...
About this update from Lycos Energy Inc
[{"type":"text","content":"Lycos Energy Inc Announces 2025 Budget, Operations Update and Disposition of Non-Core AssetsCalgary, Alberta--(Newsfile Corp. - January 6, 2025) - Lycos Energy Inc. (TSXV: LCX) (\"Lycos\" or the \"Company\") is pleased to announce its 2025 budget, operations update and disposition of non-core assets.2025 Budget HighlightsLycos is pleased to announce its 2025 budget pro-forma the disposition:Capital expenditures(1) of $80 million, which includes the drilling of approximately 32 (31.82 net) multi-lateral wells.Lycos' 2025 drilling program will target existing pools in the Mannville stack, as well as new tests in five undrilled areas. In Q1 2025 Lycos' intends to drill 8 (7.82 net) wells that are anticipated to substantially add to our current inventory.Forecasted annual average production of 5,200 boe/d (net of the 325 boe/d non-core asset disposition) (99% oil), delivering production growth of 16.1% and growth in adjusted funds flow from operations(1) of 19.6%.Expected net operating expense(1) on a per boe basis to decrease by an additional 17% from 2024.Forecasted Q4 2025 annualized net debt to adjusted funds flow from operations ratio(1) of 0.3X.Forecasted Q4 2025 production is expected to be greater than 6,000 boe/d (99% oil).(1) See \"Reader Advisories - Non-IFRS Measures, Non-IFRS Financial Ratios and Capital Management Measures\".Lycos' 2025 budget and guidance are summarized below:2025 Guidance(1)Year Ended December 31, 2025Annual average production (boe/d)5,200 boe/d (99% oil)Capital expenditures (2)$80.0 millionAdjusted funds flow from operations(2) $69.5 millionAdjusted working capital (net debt), end of year (2) ($29.4) million(1) 2025 guidance numbers are based on 2025 average pricing assumptions of: US$70.00 bbl WTI; (US$13.50) WCS differential; and $1.43 CAD/USD.(2) See Non-IFRS Measures, Non-IFRS Financial Ratios and Capital Management Measures The 2025 budget is deliberately skewed to new inventory creation in Q1 with a shift to more development and production growth-based drilling in Q3 and Q4 to set up growth in 2026. Q1 locations, if successful, will add more than 70 unbooked locations to Lycos' inventory which would imply a location replacement ratio of over 200% relative to the total number of wells to be drilled in 2025.Operations UpdateLycos completed its 2024 capital program, drilling 3 (3.0 net)...