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InPlay Oil (IPOOF) – Results surpass expectations once again

Energy
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Thursday, May 12, 2022

InPlay Oil (IPOOF)
Results surpass expectations once again

InPlay Oil is a junior oil and gas exploration and production company with operations in Alberta focused on light oil production. The company operates long-lived, low-decline properties with drilling development and enhanced oil recovery potential as well as undeveloped lands with exploration possibilities. The common shares of InPlay trade on the Toronto Stock Exchange under the symbol IPO and the OTCQX Exchange under the symbol IPOOF.

Michael Heim, CFA, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

2022-1Q results surpass expectations. Production levels continue to soar as the company executes a robust drilling program. Production was 8,221 boed up 66% and above our 8,000 boed estimate. Realized prices of $97.5 per barrel and $5.18 per thousand cubic feet (mcf) were up sharply from last year but slightly below that in our models. Resulting operating income of $34.1 million and adjusted funds from operations of $29.4 million were in line with expectations.

This is just the beginning for InPlay. The company was very active in the quarter, drilling six wells.  InPlay will continue to be active in the June quarter drilling five wells, three of which should come online in the second quarter. Management indicates a payback of three months for the wells at current prices. At such a rate of return, expanding drilling efforts is an easy decision. Rising costs, including steel and crew costs, have yet to significantly impact well drilling costs but bear watching….

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

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