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Lycos Energy Inc. Announces $60.0 Million Asset Sale, Distribution of Proceeds to Shareholders and Normal Course Issuer Bid
Calgary, Alberta--(Newsfile Corp. - October 8, 2025) - Lycos Energy Inc. (TSXV: LCX) (" Lyco...
About this update from Lycos Energy Inc
[{"type":"text","content":"Lycos Energy Inc. Announces $60.0 Million Asset Sale, Distribution of Proceeds to Shareholders and Normal Course Issuer BidCalgary, Alberta--(Newsfile Corp. - October 8, 2025) - Lycos Energy Inc. (TSXV: LCX) (\"Lycos\" or the \"Company\") is pleased to announce that it has entered into a definitive purchase and sale agreement (the \"Agreement\") dated October 7, 2025, with an arm's length purchaser to divest of certain assets in the Lindbergh, Moose Lake and Fishing Lake areas of Alberta (the \"Assets\") for cash consideration of $60.0 million, subject to customary closing adjustments as provided for in the Agreement (the \"Asset Sale\"). The Company is also pleased to announce the conditional acceptance from the TSX Venture Exchange (the \"TSX-V\") of its Notice of Intention to make a Normal Course Issuer Bid (the \"NCIB\"). Key Corporate HighlightsNotwithstanding the conclusion of the Company's strategic review process announced on May 29, 2025, the board of directors of the Company (the \"Lycos Board\") and management continually examine opportunities to enhance the interests of the Company to maximize shareholder value. The Lycos Board and management team view the Asset Sale as advantageous to the shareholders of Lycos (the \"Lycos Shareholders\") as it provides a meaningful opportunity to crystallize value and return capital to shareholders. Highlights of the Asset Sale include:Debt Reduction. $9.0 million of the net proceeds from the Asset Sale will be used to reduce fourth quarter net debt(1) to below $1.0 million, affording the Company greater financial flexibility to pursue initiatives aimed at further enhancing shareholder value, including potential accretive acquisitions, organic growth and/or share buybacks as outlined below.Cash Distribution to Shareholders. Lycos Shareholders will realize an immediate and substantial cash distribution of $0.90 (the \"Sale Dividend\") per Common Share, as further described below. Pro Forma Assets. Following the completion of the Asset Sale, Lycos will have approximately 1,700 boe/d of oil-weighted production (97% crude oil) in Central Alberta, including Swimming, Wildmere and Viking Kinsella. Strong Balance Sheet. Lycos will have less than $1.0 million of net debt and a $50.0 million credit facility, which will allow the Company to continue to develop and acquire new multi-late...