InPlay Oil (IPOOF) Update - Jan 17

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dan_s
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Joined: Fri Apr 23, 2010 8:22 am

InPlay Oil (IPOOF) Update - Jan 17

Post by dan_s »

IPOOF is currently trading at $2.31US per share. I have updated my valuation model for lower natural gas and NGL prices.
My valuation is reduced by $0.55 to $6.20US per share.
First Call's price target is $6.75Cdn, which equates to ~$5.06US.

InPlay has a lot of "running room" and double-digit annual production growth locked in for many years; all fully funded by operating cash flow. It pays monthly dividends of $0.015Cdn/share.

InPlay should be effectively debt free within a few months (current assets will exceed total debt in Q3), so there is a good chance the dividend is increased later this year.

2023 production mix should be approximately 39.5% oil, 45.2% natural gas and 15.3% NGLs. My forecast is based on 10,400 Boepd of production in 2023.

Like Hemisphere, I now expect InPlay's 12-31-2022 3rd party reserve report to show a PV10 Net Asset Value of just their P1 reserves that exceeds my valuation.
Dan Steffens
Energy Prospectus Group
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