Value Microcaps Junior Energy

[Bobwins]

In honour of Project Huskies, I am bringing InPlay Oil Corp, IPO.v/IPOOF to the board. Today -.10 to C$1.62

InPlay is a nearology pick to Yangarra. Yangarra is a steady low expense operator that I used to own several years ago. They were driling in their Cardium holdings when they made a mistake and drilled too deep into what is called the BioTurbated Zone of the Cardium. It has been known for a long time but operators assumed it was not economic.

Yangarra had good results from their well and began to drill more. Results have continued to improve as the length of the horizontals and fracking sand density has been increased. After a 10 well drill program into the BioTurbated zone, they report the following averages:

IP30 rates 490boepd w/80% oil
IP90 rates 425boepd w/70% oil

12 month decline rates 48%

These are great stats! At US$47.50/boe, Yangarra was getting payout in 10 months and an IRR% of 132%!!!!!!!!

These are Permian numbers WITHOUT $50,000/acre pricing.

Yangarra went from C$.40 to C$3.75 in the 18 months since they "discovered" the BioTurbated zone.

https://www.inplayoil.com/sites/2/files/documents/pressrelease_inplay_aug_3_2017.pdf

InPlay recently acquired ngas producer Anderson, which caused a big increase in production and an overall oil/gas ratio of 68%. They have drilled their first two mile horizontal into the BioTurbated zone and are reporting early results around 300boepd and 93% oil.

They have switched their drilling plans to the more expensive horizontals into the BioTurbated zone and have a $28million dollar budget for 2017. They have reduced wells from 12 to 9 due to the higher expense of the BioTurbated wells.

Q2 production averaged 3752boepd but this is before any BioTurbated Zone wells. They are forecasting 20% annual growth for 2017.

62,386,891 shares are outstanding at Q2. With current prices, current market cap is around C$101million.

InPlay has taken down their 6/17 presentation so I don't have that link.

Hopefully they are revising the presentation to emphasize their acreage and potential of the BioTurbated Zone.