Lycos Energy has entered into a definitive agreement to acquire heavy oil producer Durham Creek Exploration Ltd. (Source: Shutterstock)
Lycos Energy Inc. has entered into a definitive agreement to acquire heavy oil producer Durham Creek Exploration Ltd., for CA$22.5 million in a transaction consisting of CA$12.5 million in cash and 2.8 million common shares of Lycos at a deemed price of CA$3.55 per Lycos share, the company announced in a Sept. 13 press release.
The acquisition will be funded through a $25 million bought deal equity financing.
Production from the acquisition is expected to average approximately180 boe/d at close from a multi-lateral well drilled at Lindbergh. The acquisition also includes 35,382 net acres of land suitable for multi-lateral development proximally located to Lycos’ recent acquisition of Wyatt Resources Ltd.
The acquisition is expected to close on or before Oct. 16, subject to the completion of the offering and certain customary conditions and approvals, including the approval of the Court of King's Bench of Alberta and the TSX Venture Exchange.
Recommended Reading
What's Affecting Oil Prices This Week? (Oct. 02, 2023)
2023-10-02 - For the upcoming week, Stratas Advisors predicts oil prices will have a downward bias, in part because of concerns about economic growth and oil demand.
EIA Hikes Oil Price Forecast in Wake of OPEC Cuts
2023-09-13 - The extension of OPEC+ and Saudi Arabia production cuts are predicted to make oil and gasoline more expensive.
What's Affecting Oil Prices This Week? (Sept. 18, 2023)
2023-09-18 - Concerns about the global economy will be a counterforce on oil prices, says Stratas Advisors' John Paisie.
What's Affecting Oil Prices This Week? (Nov. 06, 2023)
2023-11-06 - For the upcoming week, Stratas Advisors predicts the price of Brent crude will bounce upwards from the $85 level, which is the current floor for Brent prices and could approach $87.
What's Affecting Oil Prices This Week? (Sept. 11, 2023)
2023-09-11 - The extension of the supply cuts from OPEC+ have overcome concerns about global oil demand and to push price of Brent crude above $90 for the first time since November 2022.