Calgary, Alberta--(Newsfile Corp. - November 10, 2026) - Lycos Energy Inc. (TSXV: LCX) ("Lycos" or the "Company") is pleased to announce its operating and financial results for the three and nine months ended September 30, 2026. 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 and nine months ended September 30, 2026 and 2025, copies of which are available on the Company's SEDAR+ profile at www.sedarplus.ca and the Company's website at www.lycosenergy.com.

Q3 2026 Financial and Operating Highlights

Highlights for the three months ended September 30, 2026, include:

• Production averaged 3,496 boe/d (97% crude oil), up 85% from 1,887 boe/d (96% crude oil) in Q2 2026 and up 18% from 2,958 boe/d (99% crude oil) in Q3 2025. The quarter includes the first full quarter of production from the Q2 2026 drilling program, plus partial-quarter contributions from wells drilled in Q3 2026 and from the previously announced acquisition of certain assets in the Greater Provost area of Alberta (the "Provost Acquisition").
• Production on the Company's Moonshine assets grew from approximately 900 bbl/d (100% crude oil) in July to over 1,900 bbl/d (100% crude oil) in September.
• Adjusted funds flow from operations⁽¹⁾ was $14.0 million, or $43.60/boe, up 92% from $7.3 million in Q2 2026 on higher production volumes, and up 47% from $9.6 million in Q3 2025 on higher production volumes and realized prices.
• At Moonshine, the Company drilled 6.0 gross (6.0 net) wells, including three evaluating additional stacked horizons in the Lloydminster, Waseca and General Petroleum ("GP") formations. In its legacy areas, the Company drilled 3.0 gross (3.0 net) wells, including two Sparky multi-laterals in Wildmere and a Colony step-out at Derwent.
• Operating expenses decreased to $19.67/boe from $23.67/boe in Q2 2026, reflecting higher production volumes and the return to normal field operating conditions following spring breakup.
• Closed the Provost Acquisition on August 6, 2026 for cash consideration of $70.0 million, before closing adjustments, adding approximately 1,000 boe/d (91% heavy crude oil, 1% natural gas liquids and 8% natural gas) of waterflood-supported production, funded by a $34.5 million bought-deal offering and the Company's expanded $55.0 million credit facility.
• Exited the quarter with net debt⁽¹⁾ of $37.9 million, representing 0.7x annualized net debt to adjusted funds flow from operations ratio⁽¹⁾, reflecting the debt-funded portion of the Provost Acquisition and the Q3 2026 capital program.

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

Operations Update

October production exceeded 4,400 boe/d (97% crude oil), based on field estimates, reflecting continued contributions from the Company's Moonshine and legacy asset development program.

Moonshine Development

During the third quarter, Lycos drilled three wells from its 07-19 pad to evaluate additional stacked horizons at Moonshine, with one well each in the Lloydminster and GP formations using high velocity solids management ("HVSM") designs, and one well in the Waseca formation using an open-hole multi-lateral design. All three wells were brought on production between late September and early October 2026. Early production results for the three well pad are very encouraging with the average pad rate exceeding 200 bbl/d for October. Petrophysical data and viscosity data from the three wells are well within expected ranges for productivity. Success in these zones would add substantial further drilling inventory across the Company's existing Moonshine land base.

The six-well 01-32 HVSM pad at Moonshine, brought on production in the second quarter, continues to perform with a 120-day initial production ("IP120") rate of 960 bbl/d and October production of greater than 1,000 bbl/d from the GP formation based on field estimates. The two wells drilled from the 04-32 pad in July 2026, a step-out delineation well targeting the GP formation and a Sparky test well, were brought on production in late July 2026 as previously announced, with an average pad 60-day initial production rate ("IP60") of 236 bbl/d. The results from this pad have set up the 8-31 development.

Building on these results, Lycos commenced drilling its seven-well 08-31 pad in late September 2026, with six of the seven wells targeting the GP formation and one targeting the Sparky formation. To date, the Company has rig released all seven wells, six of which are on production, and all seven are expected to be on production by mid-November 2026. Early production from the 08-31 pad is in line with early production from offset GP HVSM wells proximal to the pad. Production is expected to incline from these wells over the next 90 days as the offsets have.

Legacy Asset Development

During the third quarter, Lycos also drilled 3.0 gross (3.0 net) wells across its legacy asset base. In the Wildmere West area, the Company brought its multi-lateral Sparky well on production in mid-August 2026, achieving an IP60 rate of approximately 185 bbl/d. In the Wildmere East area, a Sparky well was brought on production in mid-August 2026 and achieved an IP60 rate of approximately 118 bbl/d. In the Derwent area, a step-out well targeting the Colony formation was brought on production in early September 2026 and achieved a 30-day initial production rate ("IP30") of approximately 148 bbl/d confirming the applicability of the HVSM process to the Colony zone in addition to the GP, Sparky and Lloydminster zones.

Kehewin Development

Lycos expects to spud a 1.0 gross (1.0 net) step-out well targeting the GP formation in the Kehewin area in mid-November 2026, following the completion of its final Moonshine well of 2026. It is the Company's first well on lands acquired in the business combination with Mahikan Oil Corporation ("Mahikan"), in an area separate from the Moonshine pool. The well is expected to be on production by late-November 2026. If successful, it would establish a new area of development for the Company.

2026 Capital Budget Expansion and Outlook

Current production is tracking ahead of previously released guidance, and accordingly, Lycos is upwardly revising its 2026 exit production guidance from 4,000 - 4,500 boe/d to 4,500 - 5,000 boe/d. Lycos is also expanding its 2026 capital budget to $60 - 65 million, an increase of $10 million from previous guidance, supported by the strong results of its 2026 drilling program. The incremental capital is largely intended to set up the 2027 capital program, with spending directed to development capital, long-lead inventory purchases and lease preparation. The associated production additions are expected to come on stream primarily in 2027.

As a result of the expansion, Lycos is updating its 2026 guidance as follows:

Lycos' exit production for 2026 is anticipated to consist of approximately 97% crude oil.

About Lycos

Lycos is an oil-focused, exploration, development and production company based in Calgary, Alberta, operating high-quality, heavy-oil, development assets in the East Central, Alberta area.

Additional Information

Reader Advisories

Forward-Looking and Cautionary Statements

Certain statements contained within this press release constitute forward-looking statements within the meaning of applicable Canadian securities legislation. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "budget", "plan", "endeavor", "continue", "estimate", "evaluate", "expect", "forecast", "monitor", "may", "will", "can", "able", "potential", "target", "intend", "consider", "focus", "identify", "use", "utilize", "manage", "maintain", "remain", "result", "cultivate", "could", "should", "believe" and similar expressions (including negatives and variations thereof). Lycos believes that the expectations reflected in such forward-looking statements are reasonable as of the date hereof, but no assurance can be given that such expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. Without limitation, this press release contains forward-looking statements pertaining to: the expected timing for bringing the remaining 08-31 pad wells and the Kehewin step-out well on production; the anticipated performance of the 08-31 pad relative to the Company's type curve; the potential for additional drilling inventory and drilling locations at Moonshine (including in the Lloydminster, Waseca and GP formations), at Derwent and in the Kehewin area, and the potential establishment of a new area of development; the expansion of the Company's 2026 capital program to $60 - 65 million and the anticipated allocation of the incremental capital to development capital, long-lead inventory purchases and lease preparation for the 2027 capital program; the expectation that the incremental capital expenditures will contribute primarily to 2027 production; the Company's updated 2026 guidance, including expected 2026 capital expenditures and exit production. Statements relating to production, reserves, recovery, replacement, costs and valuation are also deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the oil exists in the quantities predicted or estimated and that the oil can be profitably produced in the future.

The forward-looking statements and information are based on certain key expectations and assumptions made by Lycos, including expectations and assumptions concerning the business plan of Lycos; the Company's 2026 capital program being executed as planned and within budget; the timing of and success of future drilling, development and completion activities; the geological characteristics of Lycos' properties; prevailing commodity prices, price volatility, price differentials and the actual prices received for Lycos' products; the availability and performance of drilling rigs, facilities, pipelines and other oilfield services; the timing of past operations and activities in the planned areas of focus; the drilling, completion and tie-in of wells being completed as planned; the performance of new and existing wells; the application of existing drilling and fracturing techniques; prevailing weather and break-up conditions; royalty regimes and exchange rates; the application of regulatory and licensing requirements; the continued availability of capital and skilled personnel; the ability to maintain or grow its credit facility; the accuracy of Lycos' geological interpretation of its drilling and land opportunities, including the ability of seismic activity to enhance such interpretation; and Lycos' ability to execute its plans and strategies. Although Lycos believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because Lycos can give no assurance that they will prove to be correct. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause the actual results and expectations to differ materially from the anticipated results or expectations expressed. These risks and uncertainties include, but are not limited to, unforeseen difficulties in integrating acquired assets into Lycos' operations; incorrect assessments of the value of benefits to be obtained from business combinations and exploration and development programs (including the business combination with Mahikan and the Provost Acquisition); fluctuations in commodity prices, changes in industry regulations and political landscape both domestically and abroad, wars (including in the Middle East and Ukraine), hostilities, civil insurrections, foreign exchange or interest rates, increased operating and capital costs due to inflationary pressures (actual and anticipated), volatility in the stock market and financial system, impacts of pandemics, the retention of key management and employees, risks with respect to unplanned third-party pipeline outages and risks relating to the Alberta wildfires, including in respect of safety, asset integrity and shutting in production. Ongoing military actions in the Middle East and Ukraine have the potential to threaten the supply of oil and gas from the region. The long-term impacts of the actions between these nations remains uncertain. Please refer to the annual information form for the year ended December 31, 2025, and the MD&A for additional risk factors relating to Lycos, which can be accessed either on Lycos' website at www.lycosenergy.com or under Lycos' SEDAR+ profile at www.sedarplus.ca. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date hereof, and to not use such forward-looking information for anything other than its intended purpose. Lycos undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

Future Oriented Financial Information

This press release contains future oriented financial information and financial outlook information (collectively, "FOFI") regarding Lycos' prospective results of operations and production, including the Company's updated 2026 capital program of and anticipated 2026 exit production, all of which are subject to the same assumptions, risk factors, limitations and qualifications as set forth in the above paragraphs. FOFI contained in this press release was approved by management as of the date of this press release and was provided for the purpose of providing further information about Lycos' business activities for the remainder of 2026. Lycos and its management believe that the FOFI has been prepared on a reasonable basis, reflecting management's best estimates and judgments, and represents, to the best of management's knowledge and opinion, the Company's expected course of action. However, because this information is highly subjective, it should not be relied on as necessarily indicative of future activities or results. Lycos disclaims any intention or obligation to update or revise any FOFI contained in this press release, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. Readers are cautioned that the FOFI contained in this press release should not be used for purposes other than for which it is disclosed herein. Changes in forecast commodity prices, exchange rates, differences in the timing of capital expenditures, and variances in production estimates can have a significant impact on the Company's updated 2026 guidance. The Company's actual results may differ materially from these estimates.

Disclosure of Oil and Gas Information

Unit Cost Calculation. The term barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet per barrel (6 Mcf/bbl) of natural gas to barrels of oil equivalence is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. All boe conversions in the press release are derived from converting gas to oil in the ratio mix of six thousand cubic feet of gas to one barrel of oil.

Product Types. Throughout this press release, "crude oil" or "oil" include light crude oil, medium crude oil, heavy oil and tight oil combined. References to "natural gas liquids" include pentane, butane, propane and ethane. References to "gas" or "natural gas" relates to conventional natural gas.

Short Term Results. References in this press release to production test rates, initial test production rates, initial production rates (including IP30, IP60 and IP120 rates) and other short-term production rates are useful in confirming the presence of hydrocarbons, however such rates are not determinative of the rates at which such wells will continue to produce, nor is it indicative of future production capability, decline and ultimate reserves. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production for the Company. A pressure transient analysis or well-test interpretation has not been carried out in respect of all wells. Accordingly, the Company cautions that the test results should be considered to be preliminary. References in this press release to the Company's "type curve" are to management's internal estimate of expected well performance, which is based on the Company's drilling results to date at Moonshine and analogous well data and has not been independently evaluated; actual well performance may differ materially from the type curve.

Drilling Locations. This press release discloses unbooked locations. Unbooked locations are internal estimates based on the Company's prospective acreage and an assumption as to the number of wells that can be drilled per section based on industry practice and internal review and are not derived from the Company's most recent independent reserves evaluation. Unbooked locations do not have attributed reserves or resources. Unbooked locations have been identified by management as an estimation of the Company's multi-year drilling activities based on evaluation of applicable geologic, seismic, engineering, production and reserves information. There is no certainty that the Company will drill all unbooked drilling locations and, if drilled, there is no certainty that such locations will result in additional oil and gas reserves, resources or production. The drilling locations on which the Company actually drills wells will ultimately depend upon the availability of capital, regulatory approvals, seasonal restrictions, oil and natural gas prices, costs, actual drilling results, additional reservoir information that is obtained and other factors. While certain of the unbooked drilling locations have been de-risked by drilling existing wells in relative close proximity to such unbooked drilling locations, other unbooked drilling locations are farther away from existing wells where management has less information about the characteristics of the reservoir and therefore there is more uncertainty whether wells will be drilled in such locations and, if drilled, there is more uncertainty that such wells will result in additional oil and gas reserves, resources or production.

Non-IFRS Measures, Non-IFRS Financial Ratios and Capital Management Measures

This press release includes various specified financial measures, including non-IFRS financial measures, non-IFRS financial ratios and capital management measures as further described herein. These measures do not have a standardized meaning prescribed by International Financial Reporting Standards ("IFRS") and, therefore, may not be comparable with the calculation of similar measures by other companies.

"Adjusted working capital (net debt) (capital management measure)" is calculated as current assets less current liabilities, excluding derivative financial instruments, decommissioning obligations, and lease liabilities. Adjusted working capital (Net Debt) is a capital management measure which management uses to assess the Company's liquidity. See the MD&A for a detailed calculation and reconciliation of adjusted working capital (net debt) to the most directly comparable measure presented in accordance with IFRS.

"Adjusted funds flow from operations (capital management measure)" is calculated by taking cash flow from operating activities and adding back changes in non-cash working capital. Adjusted funds flow is further calculated by adding back decommissioning costs incurred and transaction costs. Management considers adjusted funds flow from operations to be a key measure to assess the performance of the Company's oil and gas properties and the Company's ability to fund future capital investment. Adjusted funds flow from operations is an indicator of operating performance as it varies in response to production levels and management of costs. Changes in non-cash working capital, decommissioning costs incurred and transaction costs vary from period to period and management believes that excluding the impact of these provides a useful measure of Lycos' ability to generate the funds necessary to manage the capital needs of the Company. See the MD&A for a detailed calculation and reconciliation of adjusted funds flow from operations to the most directly comparable measure presented in accordance with IFRS. Adjusted funds flow netback is calculated by dividing adjusted funds flow from operations by production for the period.

"Capital expenditures (non-IFRS financial measure)" includes exploration and development capital, facilities, land and seismic and acquisitions and dispositions. Management considers capital expenditures to be a key measure to assess the Company's capital investment in exploration and production activity, as well as property acquisitions and dispositions. The directly comparable IFRS measure to capital expenditures is net cash used in investing activities.

"Net debt to adjusted funds flow from operations ratio (non-IFRS financial ratio)" is calculated as net debt divided by adjusted funds flow from operations for the applicable period. Lycos utilizes net debt to adjusted funds flow from operations to measure the Company's overall debt position and to measure the strength of the Company's balance sheet. Lycos monitors this ratio and uses this as a key measure in making decisions regarding financing, capital expenditures and shareholder returns.

"Operating netback (non-IFRS financial measure)" is petroleum and natural gas revenues, less royalties, less net operating costs and transportation expenses, excluding the effects of financial derivatives. These metrics can also be calculated on a per boe basis, which results in them being considered a non-IFRS financial ratio. Management considers operating netback an important measure to evaluate Lycos' operational performance, as it demonstrates field level profitability relative to current commodity prices. See the MD&A for a detailed calculation and reconciliation of operating netback per boe to the most directly comparable measure presented in accordance with IFRS. "Operating netback, including financial derivatives" is defined as operating netback plus realized gains or losses on financial derivatives.

"Total petroleum and natural gas sales, net of blending (non-IFRS financial measure)" is total petroleum and natural gas sales, net of blending expense to compare realized pricing to benchmark pricing. This is calculated by deducting the Company's blending expense from petroleum and natural gas sales. Blending expense is recorded within blending and transportation expense in the condensed interim consolidated financial statements. See the MD&A for a detailed calculation and reconciliation of total petroleum and natural gas sales, net of blending, to the most directly comparable measure presented in accordance with IFRS.

Please refer to the MD&A for additional information relating to specified financial measures, including non-IFRS financial measures, non-IFRS financial ratios and capital management measures. The MD&A can be accessed either on the Company's website or under the Company's SEDAR+ profile on www.sedarplus.ca.

Abbreviations

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