Thursday, March 18, 2021
InPlay Oil (IPOOF)(IPO:CA)
Strong Quarter. Stronger 2021 Outlook
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.
InPlay reported strong 2020-4Q results. Results were generally favorable. Average production of 4,259 boe/d surpassed our 4,200 est. Pricing was in line with expectations that had been raised just last week. Operating costs of $14.35/boe was near our $14.00 estimate. Adjusted fund flow and EPS were slightly below recently raised expectations. Most importantly, total proved reserves grew 16% in 2020 on the heels of upward price revisions. The growth was higher than expected and what we believe will be a rarity for junior exploration companies.
The outlook for 2021 is very favorable. Energy prices are high, drilling is accelerating (3 wells completed in the 4Q), production rates are approaching pre-Covid levels, and production costs are low. Management raised their 2021 AFF to C$39-42 million from C$30.5-35.5 million leapfrogging our recently raised $35 million level. Finding costs of $9.85/boe are impressive and the company is poised to …
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.
