IPOOF - InPlay Oil (IPOOF) - Another solid quarter with results generally in line with expectations

InPlay reported sold 2022-2Q results. Production (9,063 boe/d) was a bit below our expectations due to difficulties trucking out oil due to wet weather (55 boe/d reduction). On the other hand, oil and natural gas pricing was above expectations at C$116.74 (versus our C$105 estimate) and C$7.61 per mcf. (versus our C$6.90 per mcf. estimate). Notably, lifting and operating costs were a modest $12.28/boe down from first quarter LOE of $12.96. The net effect was adjusted fund flow (C$40.9m vs. C$38.7m) and net income (C$29.0m/$0.32 vs. C$27.8m/$0.32) in line with expectations.Accelerated drilling program is showing signs of success. InPlay drilled five wells during the quarter. Drill time has been reduced to 10-11 days. InPlay did not indicate the cost to drill the wells, but we assume original drilling cost of C$2.5 million may be coming down. The company anticipates drilling three wells in the third quarter despite delays due to wet weather. Read More >>