RE:RE:Projected year end NAV should be approximately C$6.00 + or -Inplay Oil set to increase revenues early 2019 as they delayed production per Nov 2018 quarterly below.
They had already exceeded 2018 production despite delaying bringing the two wells online. Only negative is West Texas around $56 and they were hoping for $60-$65 per bbl.
“The Willesden Green area is where InPlay will deploy the majority of the remaining budgeted development capital in the fourth quarter of 2018 on the completions of the two (2.0 net) wells that were drilled at the end of the third quarter and on drilling an additional three (2.2 net) ERH wells. InPlay has elected to defer the completion of two (2.0 net) ERH wells, originally scheduled to be on production in mid-November, until the first quarter of 2019 when improved light oil differentials are anticipated. Despite the delay of production from these two (2.0 net) deferred wells, we still expect to exceed our average annual production guidance of 4,600 boe/day (71% oil and liquids). Field production estimates are currently over 5,350 boe/d (72% oil and liquids) exceeding our year end exit forecast of 5,100 to 5,200 boe/day (72% oil and liquids) as our recent new drills are significantly exceeding forecasted production. To further assist in managing the current higher light oil differentials we plan to manage light oil inventory levels at our facilities over the next few months in order to sell this oil in what we believe should be an improved differential pricing environment in 2019.
We also plan to drill one vertical stratigraphic well on our northern East Basin Duvernay lands to continue the surrounding Crown lands for an additional five years and satisfy the Company’s remaining flow-through share obligations. Our plans are still to develop our Huxley Duvernay lands at a measured pace as we continue to closely monitor the significant amount of offsetting competitor activity that is in proximity to InPlay’s lands.
Our Willesden Green Cardium and East Basin Duvernay assets have InPlay established in one of the most economic horizontal development light oil plays as well as one of the most exciting emerging light oil plays in the Western Canadian Sedimentary Basin. The Company is positioned to be one of the highest growth junior light oil focused companies which currently has 70% of production and 96% of total revenues derived from oil and liquids. We are excited about InPlay’s near-term growth and development potential given these high quality assets in the Cardium and East Basin Duvernay plays. Plans are to continue to deploy capital towards our high rate of return assets and given our financial flexibility, we expect to be able to deliver sustainable light oil production per-share growth for our shareholders.”