Lycos Energy Inc. Announces Closing of Previously Announced Durham Creek Exploration Ltd. Acquisition, $35.0 Million Equity Financing and Recent Drilling Results
Summary
Following the completion of the Acquisition and the Offering, there are 53,081,147 Lycos Shares issued and outstanding.Lycos is pleased to provide results on its most recent Mannville multi-lateral oil wells, consisting of one extended reach "sweeper" 17,000m fishbone, three shorter fishbones, one conventional multi-lateral and two new generation "wine rack" multi-laterals.Five of the seven wells on stream have substantially outperformed expectations. The Companys current production exceeds 4,000 boe/d.National Bank Financial Inc. acted as exclusive financial advisor to Lycos with respect to the Acquisition.Stikeman Elliott LLP acted as legal counsel to Lycos with respect to the Acquisition and the Offering.Burnet, Duckworth & Palmer LLP acted as legal counsel to DCEL with respect to the Acquisition and as legal counsel to the Underwriters in respect of the Offering.Lycos is an oil-focused, exploration, development and production company based in Calgary, Alberta, operating high-quality, heavy-oil, development assets in the Lloydminster, Greater Lloydminster area and Gull Lake, Saskatchewan.For further information, please contact:Certain statements contained within this press release constitute forward-looking statements within the meaning of applicable Canadian securities legislation. Without limitation, this press release contains forward-looking statements pertaining to: Lycos business strategy, objectives, strength and focus; the anticipated benefits of the Acquisition; use of proceeds from the Offering; the performance characteristics of the Companys oil and natural gas properties; future drilling plans; and the ability of the Company to achieve drilling success consistent with managements expectations.The forward-looking statements and information are based on certain key expectations and assumptions made by Lycos, including expectations and assumptions concerning the business plan of Lycos; the timing of and success of future drilling, development and completion activities; the geological characteristics of Lycos properties, including those acquired in connection with the Acquisition; prevailing commodity prices, price volatility, price differentials and the actual prices received for the Companys products; the availability and performance of drilling rigs, facilities, pipelines and other oilfield services; the timing of past operations and activities in the planned areas of focus; the drilling, completion and tie-in of wells being completed as planned; the performance of new and existing wells; the application of existing drilling and fracturing techniques; prevailing weather and break-up conditions; royalty regimes and exchange rates; the application of regulatory and licensing requirements; the continued availability of capital and skilled personnel; the ability to maintain or grow its credit facility; the accuracy of Lycos geological interpretation of its drilling and land opportunities, including the ability of seismic activity to enhance such interpretation; and Lycos ability to execute its plans and strategies.Although Lycos believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because Lycos can give no assurance that they will prove to be correct. These risks and uncertainties include, but are not limited to, unforeseen difficulties in integrating the DCEL assets into Lycos operations; incorrect assessments of the value of benefits to be obtained from acquisitions and exploration and development programs (including the Acquisition); fluctuations in commodity prices, changes in industry regulations and political landscape both domestically and abroad, wars (including Russias military actions in Ukraine), hostilities, civil insurrections, foreign exchange or interest rates, increased operating and capital costs due to inflationary pressures (actual and anticipated), volatility in the stock market and financial system, impacts of pandemics, the retention of key management and employees, risks with respect to unplanned third-party pipeline outages and risks relating to the Alberta wildfires, including in respect of safety, asset integrity and shutting in production. Unbooked locations have been identified by management as an estimation of Companys multi-year drilling activities based on evaluation of applicable geologic, seismic, engineering, production and reserves information.