Thursday, August 12, 2021
InPlay Oil (IPOOF)(IPO:CA)
Outstanding quarter due to operational improvements
As of April 24, 2020, Noble Capital Markets research on InPlay Oil is published under ticker symbols (IPOOF and IPO:CA). The price target is in USD and based on ticker symbol IPOOF. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target. 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 OTCQZ Exchange under the symbol IPOOF.
Michael Heim, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Production is soaring due to the performance of recently drilled wells. InPlay reported average production of 5,380 boe/d in the June quarter, up 71% versus last year and above our forecast of 5,167 boe/d. The jump in production reflect strong performance by three Pembina wells drilled in the first quarter that continue to blow through type curve projections. Well flow shows no signs of decreasing after 120 days and the wells have paid for themselves in 3-4 months. In addition, three new wells in Pembina came on in July and are even outperforming the wells drilled in the first quarter. Management announced that it now plans to replace three wells planned for the Willesden Green with wells in the Pembina play.
High production means high cash flow and earnings. Adjusted funds flow (AFF) for the quarter was $8.2 million ($0.12) up 730% y-o-y and 34% sequentially and above the $6.4 million ($0.09) in our models. Net income was $0.8 million ($0.02) after excluding nonrecurring items, well surpassing previous periods and our forecast of ($0.7 million) or ($0.01). Realized prices and operating netbacks were …
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.
