On October 16, 2023, Lycos Energy Inc. successfully completed the acquisition of Durham Creek Exploration Ltd. (DCEL), a privately held heavy oil producer, for a total consideration of $22.5 million. The transaction included $12.5 million in cash and 2,816,907 Lycos shares valued at $3.55 per share. The acquisition brought significant growth opportunities for Lycos, with 55 net sections of DCEL land offering over 70 potential drilling locations.

Concurrently, Lycos conducted a bought-deal financing, raising approximately $35 million through the issuance of 9,860,100 shares at $3.55 each. Part of the proceeds was used to fund the acquisition. Following these transactions, Lycos had 53,081,147 shares outstanding.

In addition to the acquisition, Lycos reported impressive results from its recent drilling operations, particularly a 17,000-meter "sweeper" fishbone well in the Sparky zone, which achieved an IP25 of over 375 boe/d, making it the company's best-performing fishbone well to date.

National Bank Financial Inc. served as the exclusive financial advisor to Lycos. Stikeman Elliott LLP acted as legal counsel for Lycos, while Burnet, Duckworth & Palmer LLP represented DCEL and the underwriters for the offering.