Current IPO:CA Stock Info

With plans to pursue production growth over 20%, InPlay Oil Corp. (ticker: IPO) has allocated $28 million to its exploration and development program for 2017.

InPlay’s operations center on the Cardium formation, with other interest in the Belly River formation and emerging potential in the Duvernay formation. Between the Cardium formation and the Belly River formation, the company believes that approximately 200 future drilling locations exist—amounting to approximately 16 years of drilling inventory at a drilling rate of 12 wells per year.

First quarter results

Within the first quarter of 2017, InPlay drilled seven gross (5.1 net) wells with another three gross (2.8 net) wells coming on production shortly after Q1. The company had seven more net wells planned for the remainder of 2017.

InPlay’s average production for 2017 was estimated between 4,000 and 4,200 BOEPD. In the first quarter, the company achieved an average production of 3,859 BOEPD.

Focusing on building the Cardium

The company’s Cardium assets lie within the Pembina and Willesden Green pools—which accounted for 70% of the company’s total 2016 production. InPlay holds 67,013 gross (48,248 net) acres in the Pembina pool, with 142 net potential horizontal drilling locations identified.

InPlay Oil Corp. Building Cardium with Upside in Duvernay

Source: InPlay Oil Corp.

Of the seven gross (5.1 net) wells drilled, six gross (4.1 net) wells were drilled in the company’s Cardium-based assets—with another two gross (1.8 net) wells slated for completion, as of June, 2017.

The Pembina pool itself is the largest conventional pool in Canada, and has been under production since 1953. As of 2009, production began occurring in the tight sands on the edges of the pool, using horizontal and fracturing technologies. Companies like InPlay are focusing increasingly on the unconventional portions of the pool, targeting previously untapped accumulations.

Willesden Green Cardium

InPlay drilled its remaining one well in the Willesden Green portion of the Cardium, with another well in the same pool waiting to be completed. The company has identified 57 net potential horizontal drilling locations in the area, largely in more unconventional portions of the reservoir.

In the Willesden Green portion of the Cardium, InPlay holds 27,520 gross (19,700 net) acres.

Potential surfacing in the east Duvernay

The east Duvernay play—in which InPlay holds 10,400 net acres in assets—has been the subject of attention from other producers like Artis, Vesta, and Raging River. Approximately $25 million has been spent in land sales in the area from April to May, 2017.

Five new horizontal wells have been drilled in the Duvernay in offset acreage by other operators with the intent to de-risk the play. InPlay estimates that the wells costs have been between four and five million dollars. The company estimates that between 65 and 80 net well locations exist in its Duvernay assets.

InPlay Oil is presenting at EnerCom’s The Oil & Gas Conference® 22

InPlay will be a presenting company at the upcoming EnerCom conference in Denver, Colorado—The Oil & Gas Conference® 22.

The conference is EnerCom’s 22nd Denver-based oil and gas focused investor conference, bringing together publicly traded E&Ps and oilfield service and technology companies with institutional investors.  The conference will be at the Denver Downtown Westin Hotel, August 13-17, 2017. To register for The Oil & Gas Conference® 22 please visit the conference website.

InPlay Oil Corp. Building Cardium with Upside in Duvernay

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