Energy
Lycos Energy Inc. Announces Strategic Acquisition of Sparky Waterflood Assets, $30.0 Million Equity Financing, Expanded Credit Facility, Operations Update and Increased 2026 Guidance
Calgary, Alberta--(Newsfile Corp. - July 20, 2026) - Lycos Energy Inc. (TSXV: LCX) ("Lycos" or the "Company") is pleased to announce that it has entered into a definitive agreement today to acquire high netback assets under waterflood targeting the Sparky formation in the Greater Provost area of Alberta (the "Assets") for cash consideration of $70.0 million, prior to closing adjustments, with an effective date of June 1, 2026 (the "Acquisition"). The Acquisition will be funded through a $30.0...
About this update from Lycos Energy Inc
Calgary, Alberta--(Newsfile Corp. - July 20, 2026) - Lycos Energy Inc. (TSXV: LCX) ("Lycos" or the "Company") is pleased to announce that it has entered into a definitive agreement today to acquire high netback assets under waterflood targeting the Sparky formation in the Greater Provost area of Alberta (the "Assets") for cash consideration of $70.0 million, prior to closing adjustments, with an effective date of June 1, 2026 (the "Acquisition"). The Acquisition will be funded through a $30.0 million bought deal equity financing (the "Equity Financing") and an expanded $75.0 million credit facility (the "Expanded Credit Facility"). Closing of the Acquisition, the Equity Financing and the Expanded Credit Facility is expected to occur on August 6, 2026. With the strong performance demonstrated from its existing asset base, Lycos is pleased to increase its previously announced exit 2026 production guidance. This performance alone, prior to giving effect to the Acquisition, supports an increase from 2,500 – 3,000 boe/d to 3,000 – 3,500 boe/d. Alongside this guidance revision, the Company is also increasing its previously announced 2026 capital expenditure budget from $35 – 40 million to $50 – 55 million. The $15 million increase will fund an expanded drilling program across Lycos' existing assets, as well as optimization and development activity on the newly acquired Assets. The additional capital will also support testing of three new zones at Moonshine and High Velocity Solids Management ("HVSM") testing in two new areas. After giving effect to the Acquisition, the Company now expects exit 2026 production of 4,000 – 4,500 boe/d. Dave Burton, President and CEO of Lycos, stated: "Our base business continues to outperform expectations, giving us the confidence to raise our exit production guidance. This Acquisition reflects our commitment to strategic M&A, the second pillar of our growth strategy, and adds a high-quality, high netback asset base in a region where our team has deep operating experience. Together with the Equity Financing and Expanded Credit Facility, we are well positioned to keep executing on all fronts of our growth strategy." Acquisition Highlights Overview of the Acquisition Lycos has entered into an asset purchase agreement (the "Acquisition Agreement") with a privately held arm's length oil...