On March 1, 2023, Calgary-based Lycos Energy Inc. announced the successful acquisition of assets in the Lloydminster area, enhancing its production by 1,500 boe/d (100% oil) and adding 1,808 Mboe of reserves. This boost brings Lycos' total current production to just over 2,700 boe/d, 99% of which is oil. Completed on February 28, 2023, the acquisition deal was valued at $50.0 million in cash. In addition to the upfront cash payment, the former owners were granted a 3% gross overriding royalty (GORR) on any new drills on the acquired lands. This acquisition strategically amplifies Lycos’ operational footprint, introducing more than 40 multi-lateral drill locations, achieving an operating netback of over $49/bbl at $75.00 WCS/bbl, and ensuring a 30% reduction in pro forma operating expenses. These changes result in a pro forma Lycos operating netback of $38.65/bbl at the same WCS price. The deal also incorporates 56.2 net sections of acquired land, of which 45.8 remain undeveloped. Lycos intends to process and sell all new volumes via its existing facilities. Looking forward, Lycos is set on reallocating capital and expanding its drilling budget, leveraging the 100% working interest opportunities from this acquisition. The company's ambitious goal is to more than double its current production by the close of 2024. In guiding this significant transaction, Lycos was advised financially by National Bank Financial Inc., with strategic insights from Peters & Co. Limited and BMO Capital Markets. Legal consultation was provided by Stikeman Elliott LLP. On February 28, 2023, Lycos completed the acquisition.