Calgary, Alberta--(Newsfile Corp. - May 22, 2024) - Lycos Energy Inc. (TSXV: LCX) ("Lycos" or the "Company") is pleased to announce its operating and financial results for the three months ended March 31, 2024.  Selected financial and operating information is outlined below and should be read with Lycos' unaudited condensed interim consolidated financial statements and related management's discussion and analysis ("MD&A") for the three months ended March 31, 2024.  These filings are available on SEDAR+ at  and the Company's website at .  

Financial and Operating Highlights

Q1 2024 Financial and Operating Highlights

Highlights for the three months ended March 31, 2024 include:

• Average production volumes increased to 3,840 boe/d (99% crude oil) in the first quarter of 2024 compared to 1,940 boe/d in the first quarter of 2023, representing a 98% increase. Exit March production averaged over 4,100 boe/day.

• Net operating expenses(1) were $25.48 per boe in the first quarter of 2024, representing a 14% decrease from $29.55 per boe in the comparable period of 2023.  

• Adjusted funds flow from operations(1) of $9.6 million in the first quarter of 2024 compared to $2.6 million in the first quarter of 2023, representing a 266% increase.  

• Reduced G&A expense to $3.79 per boe in the first quarter of 2024, a 17% decrease compared to $4.54 per boe in the same period of 2023.

• Successfully drilled and completed 7.0 wells in the Lloydminster and Greater Lloydminster area, including 6.0 net wells (2.0 wine rack and 4.0 multi-lateral) brought on stream by the end of March 2024 and 1.0 net disposal well. Lycos commenced the drilling of an additional wine rack well that was brought on stream after the first quarter of 2024.  

(1) See Non-IFRS Measures, Non-IFRS Financial Ratios and Capital Management Measures

Operations Update

Drilling operations in Q1 2024 and the first half of Q2 2024 have been focused on our Alberta properties. To date, the Company has drilled and brought 10.0 net multi-lateral wells on production, of which 6.0 net wells were drilled using our wine rack design. The Company's 2024 drilling program targeted a 4-well pad, therefore eliminating shutting down the drilling rig for spring break up as well as realizing cost savings on rig moves. Lycos is currently drilling 2.0 net wells and expects to bring these on production by the end of May 2024. Current average production is approximately 4,500 boe/day (99% crude oil).

The following table highlights Lycos' drilling results from the first half of 2024 for all wells that have been on production for more than 30 days. Six of the seven wells listed were drilled in Q1 2024 and the 04/03-29-048-05W4 well was drilled in Q2 2024.

Outlook

As Lycos converts inventory on lands acquired from last year, results are well above expectations. The recent success has added two new core areas to the Company's portfolio and the next round of drilling through Q3 2024 will test three new areas expected to add multiple follow up locations to our inventory on the success of those drills.  Lycos plans to drill and complete 19 gross (18.6 net) multi-laterals in Q2 2024 and Q3 2024 with 3 gross (3 net) wells being drilled in Saskatchewan to take advantage of the new multi-lateral royalty relief program there.