InPlay Oil (IPOOF) Update - Oct 5

[dan_s]

I have posted an updated forecast/valuation model for InPlay to the EPG website. My updated profile on the Company will be posted to the website late today.

My valuation of IPO is $9.56Cdn or $7.65US for IPOOF. My valuation compares to First Call's price target of $6.79Cdn ($5.43US).

IPO was trading at $2.97 when I posted this, so I think this stock should be a triple for us if their Q3 and Q4 results match up with my forecast. Why?
> Current production is getting close to 10,000 Boepd.
> InPlay has a lot of "running room" with over 500 low-risk / high-return HZ development drilling locations within the leasehold they control today.
> The Company is generating a lot of free cash flow from operations; ~$1.00Cdn/share FCF this year.
> YOY production growth: 44.6% in 2021, s/b over 60% in 2022 and close to 30% in 2023
> On track to reach production over 12,000 Boepd within twelve months.
> It is very close to being debt free.
> I expect them to announce a dividend and a share repurchase program soon.
> PV10 Net Asset Value of just their proved reserves (P1) should be close to $10Cdn/share at 12-31-2022.
> At today's oil price, InPlay's East Basin Duvernay Shale leasehold may be worth another $1 to $2 per share.

[dan_s]

The fresh InPlay profile has been posted to the EPG website.