- Lycos (LCX) has announced an operational update and a new C$20 million senior-secured credit facility
- The facility, with National Bank of Canada, will support Lycos’ growth initiatives
- These initiatives include organically developing and acquiring an inventory of new multi-lateral development prospects to drive shareholder returns
- The company’s current production is 1,250 boe/d (98.5 per cent oil) in Saskatchewan
- Lycos Energy is an exploration, development and production company operating heavy-oil assets in Alberta and Saskatchewan
- Lycos Energy (LCX) is down by 1.82 per cent trading at $0.54 per share
Lycos (LCX) has announced an operational update and a new C$20 million senior-secured credit facility.
Operational update:
Lycos is extremely optimistic about its first multi-leg fishbone well drilled at 08-33-043-22W3. The 100-per-cent working interest well has been on production since November 2022, achieving an average 30-day production rate of 149 boe/d.
At recent strip pricing of US$50/bbl WCS, Lycos expects the well to achieve payout in less than 10 months.
The company drilled a second 8-leg multi-lateral well at 08-31-043-22W3 from the same drilling pad. It achieved average 30-day production of 97 boe/d.
At US$50/bbl WCS, the well is expected to achieve payout in less than 15 months.
Based on the two wells, the increased reservoir contact provided by the fishbone design appears to provide superior capital efficiency, with a 60 per cent increase in productivity and a 10-15 per cent increase in capital expenditures, compared to single and multi-leg wells drilled in the vicinity.
Lycos will begin a drilling campaign in Q1 2023 comprised of fishbone drills and additional water disposal wells.
Credit facility:
Lycos has signed a new revolving credit facility for up to C$20 million with National Bank of Canada. The facility is undrawn, uncommitted and payable on demand to support the company’s growth initiatives.
Outlook:
The company’s current production is 1,250 boe/d (98.5 per cent oil) in Saskatchewan. Additionally, Lycos owns a 21.85 per cent equity interest in Chronos Duvernay Limited Partnership, which is currently producing 1,225 boe/d (gross, 100 per cent oil) in Alberta.
Lycos will use its strong cash position and balance sheet to organically develop and acquire inventory of new multi-lateral development prospects to drive shareholder returns.
Lycos Energy is an exploration, development and production company operating heavy-oil assets in Alberta and Saskatchewan.
Lycos Energy (LCX) is down by 1.82 per cent trading at $0.54 per share as of 2:14 pm EST.
