Inplay Oil Corp · TSX:IPO
Inplay Oil — Investor Presentation (October 2021)
26 slides from Inplay Oil's investor presentation, October 2021
Slide 1: Corporate Presentation Including Announced Strategic Cardium Acquisition
Corporate Presentation Including Announced Strategic Cardium Acquisition October 2021 TSX : IPO OTCQX : IPOOF
Slide 2: Investment Highlights & Recent Events
Investment Highlights & Recent Events • Technically focused team successfully managed InPlay through a challenging environment and now in the strongest position in our corporate history – Continual annual top-tier organic growth amongst peers since inception – Sustainability enhanced with strong bal
Slide 3: Willesden Green – Cardium Acquisition Highlights
Willesden Green – Cardium Acquisition Highlights Acquisition is complementary to InPlay’s land position (close expected Nov 30, 2021) • InPlay becomes one of the largest acreage holders in the Willesden Green Cardium play • Operational synergies provide immediate annual cost savings of $3.0-$3.5 mm
Slide 4: Pro Forma Corporate Overview
Pro Forma Corporate Overview OPERATING SUMMARY 2021 Average Production (light oil & liquids %) 5,750 – 6,000 boe/d (67%)(1) 2021 Hz Drilling Plans 10.0 2020 pro forma reserves Proved Developed Producing 14.5 MMboe 64% oil & NGL Proved Reserves 42.8 Mmboe in TPP reserve booking Proved and Probable Re
Slide 5: Management and Directors
Management and Directors Management Directors Strong Technically and Value Creators Experienced Industry Board Doug Bartole, P. Eng., ICD.D Doug Bartole, P. Eng., ICD.D President and CEO, Director Joan Dunne, FCPA, FCA, ICD.D Kevin Yakiwchuk, MSc., P. Geol. Craig Golinowski CFA, MBA Vice President E
Slide 6: Consistent Top-Tier Organic Growth
Consistent Top-Tier Organic Growth Extraordinary recovery in production, AFF and debt reduction post COVID Production(1) Adjusted Funds Flow(2) 60,000 Reserves 800 9,500 120 110 1.40 Adjusted Funds Flow / share ($/share) Production/sh (boe/d/mm shares) 8,500 110 100 1.20 50,000 Adjusted Funds Flow (
Slide 7: Top-Tier Efficiencies in Finding Reserves and Adding Producing Barrels
IPO Consistently Providing Top-Tier Efficiencies in Finding Reserves and Adding Producing Barrels IPO Capital Efficiencies Adding Producing Boed • 2020 capital efficiency of $19,949 per boe/d • 3 year average capital efficiency of $17,702 per boe/d 2019 PDP FDA & Recycle Ratios Versus Peers 2020 PDP
Slide 8: Focused Asset Base
Focused Asset Base Drilling industry pacesetter horizontal wells and exceeding forecasted volumes InPlay Land InPlay Wells ALBERTA 80% Cardium Acquisition Land Acquisition Wells Industry Cardium Wells production PEMBINA Edmonton WILLESDEN E. BASIN GREEN DUVERNAY PEMBINA Calgary Production(1): ~4,100
Slide 9: Pembina Cardium
Pembina Cardium Q4 2020 Strategic Cardium asset acquisition (100% WI) InPlay Wells • Built multi-well battery in Q1/21 to handle full field development InPlay Rights • 26 well inventory remaining with ~30% of the locations unbooked Cardium Vertical Cardium Horizontal • 100% WI lands allow developmen
Slide 10: Cardium Type Well Economics
Cardium Type Well Economics The Cardium is a well established play providing some of the best low risk returns in the Western Canada Sedimentary Basin Pembina Willesden Green 1.0 Mile Hz 1.5 Mile Hz 1.0 Mile Hz 1.5 Mile Hz Capex (mm) $1.7 $2.8 $2.0 $2.7 Potential Recovery (mboe) 160 345 185 290 IP90
Slide 11: 2021 Forecast and Preliminary 2022 Outlook
2021 Forecast and Preliminary 2022 Outlook(2) Pro forma Pro forma Commodity Price Assumptions 2021 Forecast 2022 Outlook WTI oil price (US$/bbl)(4) $66.90 $69.75 Edmonton par (C$/bbl)(4) $79.00 $81.30 AECO gas price ($/GJ)(4) $3.45 $3.70 Operational Forecast Avg production (boe/d) (% liquids)(1) 5,7
Slide 12: Environmental Leadership
Environmental Leadership GHG Emissions • Reduction in CO2 emissions by 12% in 2018 and 25% in 2019 0.04 compared to prior year. 2% reduction in 2020 compared to 2019, despite COVID-19 production shut-ins and curtailments 0.03 12% • Emissions reduction of 1,540 tonnes of CO2e (equivalent to removing
Slide 13: Summary
Summary • Acquisition improves InPlay’s long term sustainability – Low decline base production requiring minimal capital to keep flat – Significant addition of top-tier operated high working interest inventory • Executing on strategy for top-tier production growth with FAFF(1) focused on maximizing
Slide 14: Appendix
Appendix Ye INPLAyY OIL 14
Slide 15: InPlay Team
InPlay Team Strong Technically and Value Creators Doug Bartole, President and CEO and Director, P. Eng., ICD.D (over 27 years) • Founder of InPlay; Founder, President and CEO of Vero Energy; VP Operations of True Energy; Management and Engineering roles at Husky Energy, Renaissance Energy and PanCan
Slide 16: East Basin Duvernay Shale
East Basin Duvernay Shale Emerging Light Oil Play 37.4 Crown Sections in the Huxley Area (23,930 net acres) Joffre – Crown lands provide 5% royalties for 4-6 years @ $60-$70 WTI – Extensive activity directly offsetting InPlay’s land • Long land tenure allows InPlay a measured pace of development as
Slide 17: Risk Management Hedges
Risk Management Hedges (Commodity derivative contracts) 2021 2022 Q3 Q4 Q1 Natural Gas AECO Swap (GJ/d) 4,750 2,925 - Hedged price ($AECO/GJ) $2.46 $2.40 - Natural Gas AECO Costless Collar (GJ/d) - 1,325 2,000 Floor $2.70 $2.70 Hedged price – ($AECO/GJ) - Ceiling $3.36 $3.36 Crude Oil WTI Swap (bbl/
Slide 18: Slide Notes
Slide Notes Slide 2 1. 2022 targeted pro-forma production, adjusted funds flow, free adjusted funds flow, FAFF yield, net debt/EBITDA and relevant growth rates are based on forecasted assumptions outlined in the “Forward Looking Information and Statements” in the Reader Advisories. Slide 3 1. The ag
Slide 19: Slide Notes (continued)
Slide Notes (continued) Slide 8 1. See “Drilling Locations” within “Oil and Gas Advisories” in the Reader Advisories. 2. Total land holdings to be acquired is 68,905 gross (49,811 net) acres, of which approximately 49,120 gross (37,995 net) acres represent lands in the Cardium formation. 3. See “Typ
Slide 20: 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 21: Reader Advisories (continued)
Reader Advisories (continued) Oil and Gas Advisories (cont’d) Test Results and Initial Production Rates - A pressure transient analysis or well-test interpretation has not been carried out and thus certain of the test results provided herein should be considered to be preliminary until such analysis
Slide 22: Reader Advisories (continued)
Reader Advisories (continued) Payout refers to the time required to pay back the capital expenditures (on a before tax basis) of a project. Reserve Life Index (“RLI”) is calculated by dividing the quantity of a particular reserve category of reserves by the forecast of the first year's production fo
Slide 23: Reader Advisories (continued)
Reader Advisories (continued) Non-GAAP Measures and Ratios (cont’d) Operating netback per boe - InPlay uses “operating income” and “operating netback per boe” as key performance indicators. Operating income is calculated by the Company as oil and natural gas sales less royalties, operating expenses
Slide 24: Reader Advisories (continued)
Reader Advisories (continued) Forward Looking Information and Statements This presentation contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "o
Slide 25: Forward Looking Information Assumptions
Reader Advisories (continued) Forward Looking Information Assumptions (cont’d) Pro-forma Pro-forma Prior Guidance Prior Outlook Guidance Outlook FY 2021(1) FY 2022(2)(3) FY 2021(4) FY 2022(3)(4) Forecasted Adjusted Funds Flow $ millions $44.5 - $47.5 $71.5 - $74.5 $51.0 - $54.0 $106.5 - $111.5 Capit
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