Inplay Q3: any news from them ?

[yves@groupelm.ca]

Hi Dan, can you update us on Inplay Q3 results when available ?

Thanks

[dan_s]

InPlay has not released Q3 results. I expect them to release any day now, but likely next week.
For an update on the Company, you can watch the replay of our October 3 webinar that was hosted by InPlay.
The replay link can be found under the "EPG Events" link on the home page.

I do expect InPlay's Q3 results to show a ~700 Boepd increase in production from Q2 to Q3. Q3 production should be close to 9,400 Boepd.
Q4 production guidance should be over 10,000 Boepd. Growth to over 11,000 Boepd in 2024 will be funded entirely with operating cash flow.
InPlay is on pace to generate over $104Cdn million in operating cash flow in 2023 and approximately $25Cdn million in free cash flow.
InPlay has a lot of high quality "running room" with over 200 HZ development drilling locations that payout within 6 to 8 months of being completed to sales.

[yves@groupelm.ca]

Third Quarter 2023 Financial & Operating Highlights
 Realized average quarterly production of 9,003 boe/d(1) (57% light crude oil and NGLs), a 6% increase
compared to 8,474 boe/d (57% light crude oil and NGLs) in the second quarter of 2023 despite extended
curtailments and unplanned downtime experienced in the quarter of approximately 550 boe/d.
 Generated strong quarterly adjusted funds flow (“AFF”)(2) of $25.2 million ($0.28 per basic share(3)), an
increase of 16% from the second quarter of 2023.
 Returned $4.0 million ($12.0 million in the first nine months of 2023) directly to shareholders through our
monthly base dividend.
 Increased revenues by 17% to $46.7 million compared to $39.8 million in the second quarter of 2023.
 Improved field operating netbacks(3) by 8% compared to the second quarter of 2023.
 Achieved net income of $7.5 million ($0.08 per basic share; $0.08 per diluted share). InPlay has now returned
to a retained earnings position on the balance sheet demonstrating that the Company has generated positive
earnings since inception (net of dividends paid).
 Invested $27.5 million to drill, complete and equip three (2.9 net) Extended Reach Horizontal (“ERH”) wells
in Willesden Green, three (3.0 net) ERH wells in Pembina and one (0.35 net) non-operated ERH well in
Willesden Green.
Fourth Quarter Operational Update:
 Drilled and completed two (1.6 net) ERH wells in Willesden Green which were recently put on production.
 The three (3.0 net) Pembina ERH wells brought on production shortly before start of the quarter are
producing at strong rates of approximately 260 boe/d(1) (87% light crude oil and NGLs) per well.
 Brought online our second natural gas facility upgrade at Leafland, which has increased operated facility
capacity by 66% while improving our liquids yield by 40%. Production benefits are already being realized
through reduced back pressure on wells, lower declines and providing more consistent runtimes.
 Current production is 9,700 boe/d(1) (60% light crude oil and NGLs) based on field estimates, excluding the
impact of the two (1.6 net) ERH wells in Willesden Green showing strong flowback rates in the early clean
up stage.

[dan_s]

I will update my model for InPlay this afternoon.

[yves@groupelm.ca]

Hi Dan, do you see Q3 financials in line with your models ?

[dan_s]

InPlay's Q3 production was below my forecast but still a good quarter. I will update my model early next weeki

New ngas facility should help increase production and improve the production mix. Q4 FCF should be very good.

I will be meeting with Doug Bartole on Nov 28 along with several other large shareholders.