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.
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