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InPlay Oil Corp (TSX:IPO)

Summary

InPlay Oil Corp. is a Toronto Stock Exchange listed oil and gas development and production company based in Calgary, Canada. The company is focused on acquiring and developing oil and natural gas properties in Western Canada.

Market Overview

$1.34 (0.000%)
Vol 4,500.00
10 Days Avg Vol 14,554.44
3 Mo Avg Vol 31,145.87
52 Wk Lo/Hi $1.30 - $2.34
YTD Price Gain % -36.19%
12 Wks Moving Avg 1.627500
200 Days Moving Avg 1.841550
Market Cap 83,439,078

Company Background

InPlay Oil Corp. is a growth-oriented light oil development and production company based in Calgary, Alberta. InPlay’s activity is focused on large oil in place pools with low recovery factors, low declines, and long life reserves primarily targeting the Cardium Formation in Alberta. InPlay has a strong balance sheet allowing it to weather commodity volatility and develop its extensive inventory of horizontal drilling locations.

Highlights

  • High netback, low decline, focused in the Cardium and positioned to deliver sustainable per share organic growth alongside value based tuck-ins.
  • Strong financial flexibility with capex spending 8% less than forecasted funds flow and average draw of <60% on credit facility.
  • Operational expertise:
    • Cardium ~ $16,000/boed per well capital efficiencies (1st year).
    • 20% production growth (~25% debt adjusted) spending less than cash flow (Q4 ’17 over Q4 ‘16).
  • Sustainable project with approximately 200 locations (>16 years drilling inventory assuming 12 wells drilled per year), RLI of 19.3 years and base decline of 21%.

Share Structure

As of June 30, 2017

Shares Issued 62,396,169
Warrants 0
Options 4,892,400
Fully Diluted 67,288,569

Other Information

Operations:

  • InPlay’s Cardium assets are located in West Central Alberta focused in the Pembina and Willesden Green
  • At year end 2016 Cardium accounted for 70% of the Company’s production.

Pembina Cardium Pool:

  • Production
    • 2,675 boed (78% liquids)
    • ~C$34 field netback at US$55 WTI
  • 67,013 (48,248 net) acres
  • Significant ownership in area facilities providing control in core areas including:
    • 6 major oil facilities with custom treating & water disposal
    • 2 (100% WI) batteries tied directly into Pembina Pipelines Sales
  • Largest conventional oil pool in Canada with ~ 9.4 billion barrels of oil in place as estimated by the Alberta Energy Regulator with only ~17% recovery to date.
  • Successfully produced and flooded since discovery in 1953.

Willesden Green Cardium Pool:

  • Production
    • 1,025 boed from Cardium (43% liquids)
    • ~C$29 field netback at US$55 WTI
  • 27,520 (19,700 net) acres
  • Recent InPlay and industry results have been exceptional resulting in InPlay increasing the drilling program in Willesden Green.

Emerging – East Basin Duvernay Light Oil Play:

  • 10,400 acres (16.25 net sections)
  • Large oil in place unconventional reservoir in very early stage development
  • Currently the most active emerging play in the Western Canadian Sedimentary Basin based on significant recent land sale prices and industry discussion.
  • Exciting early results, expect to see continued technical improvements.

Management Profiles

Douglas J. Bartole

President & CEO

Mr. Bartole has been the President and Chief Executive Officer of the Corporation since November 2012; prior thereto, Mr. Bartole was the founder, President and Chief Executive Officer of Vero Energy Inc., a public oil and gas company, from September 2005 to November 2012. Mr. Bartole was also previously Vice President, Operations of True Energy and held management and engineering roles at Husky Energy Inc., Renaissance Energy Ltd. and PanCanadian Petroleum Ltd. He was also a director of Invicta Energy and other private corporations. Mr. Bartole is a member of APEGA, the Institute of Corporate Directors and a prior governor of CAPP.

Gordon Reese

Vice President, Business Development

Mr. Reese has been the Vice President, Business Development at InPlay, since November 2012. He was the founder, President and Chief Executive Officer of Invicta Energy Corp. and formerly was the President and Chief Executive Officer of Cipher Energy Inc. Prior thereto, Mr. Reese was the Vice President, Exploration at True Energy and held various prospect generation and management roles at CS Resources Limited and Gulf Canada Resources Ltd.

Kevin Yakiwchuk

Vice President, Exploration

Mr. Yakiwchuk is a Professional Geologist and has been the Vice President, Exploration at InPlay since November 2012. Prior thereto, Kevin was the Vice President, Exploration at Vero Energy Inc., a public oil and gas company, from September 2005 to November 2012. Prior thereto, Mr. Yakiwchuk was the Vice President, Exploration at True Energy, geologist at Crestar Energy Inc, Renaissance Energy Ltd. and Shell Canada.

Thane Jensen

Vice President, Operations

Mr. Jensen has been the Vice President, Operations of InPlay since November 2012. Prior thereto, he was the Senior Vice President, Operations, Exploration and Development and prior Vice President, Engineering at Penn West Exploration Ltd. Prior thereto, Mr. Jensen held roles as reservoir engineer, exploitation engineer and drilling and completions engineer at PanCanadian Petroleum Ltd.