Lycos Energy Inc. Announces 2025 Reserves

Core Viewpoint - Lycos Energy Inc. has reported positive net reserve growth and strategic asset monetization in its 2025 independent reserves evaluation, reflecting a disciplined approach to capital management and operational efficiency [1][4][5]. Group 1: 2025 Overview - In 2025, the company executed a strategic monetization of certain heavy oil assets while retaining legacy properties, significantly reducing operating complexity and decommissioning obligations [2]. - The company returned capital to shareholders through a $0.90 per common share return of capital, highlighting its commitment to disciplined capital stewardship [3]. Group 2: Year-End Reserves - As of December 31, 2025, the company reported Proved Developed Producing (PDP) reserves of 2,557 Mboe, Total Proved (TP) reserves of 5,449 Mboe, and Total Proved and Probable (TPP) reserves of 8,272 Mboe [7]. - The reserves evaluation was conducted by McDaniel & Associates and complied with National Instrument 51-101 standards [5][6]. Group 3: Reserve Growth and Changes - The company achieved net reserve growth of 204 Mboe in PDP, 353 Mboe in TP, and 327 Mboe in TPP, primarily driven by performance revisions and optimization initiatives [4]. - The transition to a new reserves evaluator, McDaniel, was part of a periodic review to align with industry peers, with no changes to the reserves reporting framework [6]. Group 4: Future Development Costs - Estimated future development costs (FDC) for bringing Proved Undeveloped reserves into production are $51.7 million for total proved reserves and $76.3 million for total proved plus probable reserves [10][11]. Group 5: Net Asset Value - The net asset value (NAV) per diluted share is estimated at $1.64 for Total Proved reserves and $2.48 for Total Proved Plus Probable reserves, based on the before-tax estimated net present value of future net revenue discounted at 10% [12][25].