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InPlay Oil Corp T.IPO

Alternate Symbol(s):  IPOOF

InPlay Oil Corp. is a Canada-based junior oil and gas exploration and production company with operations in Alberta focused on light oil production. It operates long-lived, low-decline properties with drilling development and enhanced oil recovery potential, and undeveloped lands with exploration possibilities. It is engaged in the acquisition, exploration and development of petroleum and natural gas properties, and the production and sale of crude oil, natural gas and natural gas liquids. Its operations are focused on its concentrated light oil asset base located in West Central Alberta. Its primary target is the Cardium Formation within the Pembina and Willesden Green pools. Its Cardium assets are located in West Central Alberta focused on the Pembina and Willesden Green pools. Its Belly River light oil property is located on the east side of the Pembina Cardium Pool. It holds rights on an evolving Duvernay light oil play that offers potential material upside to the Company.


TSX:IPO - Post by User

Comment by Hendrick3on Jul 02, 2021 4:52pm
125 Views
Post# 33488308

RE:trouble is management is talking growth and aquisitions

RE:trouble is management is talking growth and aquisitionsTheir current plan is to pay down debt with free cash flow. At these prices they will be under $45 million by year end. The wells they drill pay back in under 4 months and have a 200% IRR. They will be at 1 times cash flow to debt next year. Paying off all the debt (which costs around 7%)is not wise when you can drill wells at 200% IRR. Ideally they get debt to a more appropriate level such as 1 times cash flow and then invest their capex in these high performing wells. They are much too small to impact the macroeconomics of oil price. If you could borrow at 7% and earn 200%, you would t be paying off debt. As a shareholder, that's the decision in front of you. 
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