Inplay Oil Corp · TSX:IPO
Inplay Oil — Investor Presentation (November 2020)
26 slides from Inplay Oil's investor presentation, November 2020
Slide 1: Corporate Presentation November 2020
Corporate Presentation November 2020 TSX : IPO OTCQX : IPOOF
Slide 2: Investment Highlights – Who Are We?
Investment Highlights – Who Are We? • Technically focused, strong management team operating a sound, Junior light oil growth Company in a challenging environment while providing top-tier production growth within Adjusted Funds Flow (“AFF”) (1) • Positioned in two of the most exciting light oil plays
Slide 3: Investment Highlights – Road to Recovery
Investment Highlights – Road to Recovery • Liquidity and Sustainability – First Canadian E&P company to receive financing from the Business Development Bank of Canada providing the Company with a $25 million, second lien, four year term credit facility – Initiated well workovers and returning curtai
Slide 4: Corporate Overview
Corporate Overview OPERATING SUMMARY 2020 Forecasted Average Production (light oil & liquids %) 4,000 boe/d (68%) 2020 Hz Drilling Plans 7.0 Proved Reserves 18,573 mboe P+P Reserves 27,295 mboe 71% oil & NGL in P+P reserve booking P+P NPV BT10% ($mm) $304.3 mm MARKET SUMMARY Basic Shares Outstanding
Slide 5: Management and Directors
Management and Directors Management Directors Strong Technically and Value Creators Experienced Industry Board Doug Bartole, P. Eng., ICD.D Doug Bartole, P. Eng., ICD.D President and CEO, Director Jackie Bentley CPA, CA Kevin Yakiwchuk, MSc., P. Geol. Craig Golinowski CFA, MBA Vice President Explora
Slide 6: Consistent Top-Tier Organic Light Oil Growth
Consistent Top-Tier Organic Light Oil Growth ONE OF THE ONLY COMPANIES SHOWING ORGANIC GROWTH WITHIN CASH FLOW OVER LAST 4 YEARS Production Reserves Production/sh (boe/d/mm shares) 5,500 90 30,000 27063 27295 26084 5,000 24486 80 Production (boe/d) 4,500 25,000 18859 18573 Reserves (MBOE) 17473 70 1
Slide 7: 2019 Year End Reserves & Efficiency Highlights
2019 Year End Reserves & Efficiency Highlights Reserve Highlights Reserves BOE NPV BT10% RLI Replacement (Mboe) ($000s) (Years) (%) Proved Developed Producing 8,718 108,937 120 4.8 Total Proved 18,573 189,108 84 10.2 Total Proved + Probable 27,295 304,289 113 15.0 Finding, Development & Acquisition
Slide 8: IPO Providing Top-Tier Efficiencies in Finding Reserves and Adding Producing Barrels
IPO Providing Top-Tier Efficiencies in Finding Reserves and Adding Producing Barrels 2019 PDP FDA & Recycle Ratios Versus Peers $25.00 3 IPO 3 Year Finding Costs & Recycle Ratios - Consistent & Top-Tier $20.00 IPO 3 year average PDP FD&A of $14.34/boe, recycle ratio of 1.6 22 $15.00 IPO 3 year a
Slide 9: Environmental Leadership
Environmental Leadership GHG Emissions – Reduction in CO2 equivalent emissions per boe by 12% in 2018 and 0.040 25% in 2019 compared to prior year. Forecasting a 2% reduction in 0.035 2020 compared to 2019, despite shut-in and curtailment of a 0.030 12% significant amount of production due to COVID-
Slide 10: Focused Light Oil Producer with Low Decline High Margin Operations
Focused Light Oil Producer with Low Decline High Margin Operations Net 2019 Production 2020e Production Drilling Formations ALBERTA boe/d (% liquids) boe/d (% liquids) Inventory Willesden Green 3,076 (65%) 2,150 (55%) 121 Cardium Cardium PEMBINA Edmonton Pembina 1,266 (80%) 1,550 (85%) 151 Belly Riv
Slide 11: Willesden Green Cardium
Willesden Green Cardium Consistently drilling industry pacesetter 1.5 mile horizontal wells and exceeding forecasted volumes 2019 Hz Drilling Activity : 8 (4.8 net) 2020 Hz Drilling Activity : 1 (1.0 net) drilled – 3 (3.0 net) well pad to be drilled in Q4 Upside Potential – 121 net Hz Cardium drilli
Slide 12: Pembina Cardium
InPlay Wells Pembina InPlay Rights Drilling industry pacesetter 1.0 mile horizontal Acquisition Wells Acquisition Rights wells and exceeding forecasted volumes Cardium Vertical Cardium Horizontal 2019 Hz Drilling Activity : 3 (3.0 net) 2020 Hz Drilling Activity : 3 (3.0 net) Upside Potential – 151 n
Slide 13: Pembina Acquisition Highlights
Pembina Acquisition Highlights Light Oil production and reserves cannot be added through the drill bit at these metrics Strategic Cardium asset acquisition – Purchase Price - $1.9mm (net of adjustments) – Third party 2019 PDP/TP year end reserves of ~ 1,000 Mboe • PDP reserve ~$1.90 per boe • PDP RL
Slide 14: East Basin Duvernay Shale
East Basin Duvernay Shale Joffre Emerging Light Oil Play 48.4 Crown Sections in the Huxley Area (30,960 net acres) – Independent land evaluator values land at $49.6mm (avg. $1,619 / acre) • Average InPlay land cost to date has been $545 / acre – Crown lands provide 5% royalties for 4-6 years @ $60-$
Slide 15: Potential Duvernay Development Economics
Potential Duvernay Development Economics 700 US$50 WTI Oil Price (NPV 10% / IRR) 250 Mbbl 315 Mbbl 400 Mbbl 500 Mbbl 600 Calendar Daily Oil (bbl/d) $4.5mm $5.5mm $6.5mm EUR vs. CAPEX 500 (1 mile) (1.5 mile) (2 mile) 400 250 mbbl $3.1mm / 38% $2.1mm / 24% $1.2mm / 16% 315 mbbl $4.9mm / 64% $4.1mm / 4
Slide 16: Summary
Summary • Strong team managing a sound, flexible, and focussed Company in a challenging environment Solid technically, a capital efficient light oil producer • Aggressive and effective response to unprecedented environment as a result of COVID • Actions the team have taken have InPlay in a solid pos
Slide 17: Appendix
Appendix od) INPLAY OIL
Slide 18: InPlay Team: Strong Technically and Value Creators
InPlay Team Strong Technically and Value Creators Doug Bartole, President and CEO and Director, P. Eng., ICD.D (over 25 years) • Founder, President and CEO of Vero Energy; VP Operations of True Energy; Management and Engineering roles at Husky Energy, Renaissance Energy and PanCanadian Petroleum • D
Slide 19: InPlay Team: Strong and Experienced Board
InPlay Team Strong and Experienced Board Doug Bartole, P. Eng., ICD.D • President and CEO of InPlay Oil Jackie Bentley, CPA, CA • Vice President and Controller at JOG Capital Corp. Craig Golinowski, CFA, MBA • President of JOG Capital Corp. • Currently sits on the board of a number of private and pu
Slide 20: Risk Management
Risk Management Hedges (Commodity derivative contracts) Q4/20 Q1/21 Q2/21 Q3/21 Q4/21 Hedged Gas (GJ/d) 3,350 4,000 2,000 2,000 2,000 Hedged price ($/GJ) $2.21 $2.64 $2.34 $2.34 $2.34 Hedged Oil (bbl/d) 1,085 750 500 - - Hedged price – ($USD WTI/bbl) $42.52 $42.86 $42.76 - - Crude Oil WTI Costless C
Slide 21: Slide Notes
Slide Notes Slide 2 1. Refer to press release dated March 18, 2020 for details of 2019 Capital efficiency and PDP Finding, Development and Acquisition (“FD&A”) cost. Slide 3 1. See “Drilling Locations” within “Oil and Gas Advisories” in the Reader Advisories. Slide 4 1. Reserves and NPV are derived
Slide 22: Slide Notes (continued)
Slide Notes (continued) Slide 14 1. Seaton-Jordan evaluation valued InPlay’s undeveloped land in the Duvernay area at $49.6MM ($1,619 per acre for 30,640 acres) as at December 31, 2018 2. See “Drilling Locations” within “Oil and Gas Advisories” in the Reader Advisories. 3. Potential recovery estimat
Slide 23: Reader Advisories
Reader Advisories All amounts in this presentation are stated in Canadian dollars unless otherwise specified. Throughout this presentation, the terms Boe (barrels of oil equivalent) and Mmboe (millions of barrels of oil equivalent) are used. Such terms when used in isolation, may be misleading. In a
Slide 24: Reader Advisories (continued)
Reader Advisories (continued) Oil and Gas Advisories (cont’d) Type Curves and Potential Recovery Estimates - The type curves presented herein reflect a selection from a type curves library provided by InPlay’s independent reserve evaluator. In each case the type curve presented is that which in mana
Slide 25: Reader Advisories (continued)
Forward Looking Information and Statements (cont’d) Reader Advisories (continued) Additionally, readers are advised that historical results, growth and transactions described in this presentation may not be reflective of future results, growth and transactions with respect to InPlay. The forward-loo
Slide 26: Contact Us
Contact Us Doug Bartole President and CEO 587.955.0632 DougB@InPlayOil.com #920, 640 – 5th Avenue SW Calgary, AB T2P 3G4 www.inplayoil.com 26