InPlay Oil Corp. said its Q2 production surpassed expectations by reaching around 1,000 barrels of oil equivalent per day (boepd).
The outperformance was driven by base production performing above expectations and wells brought onstream in March significantly outperforming InPlay’s type curves by around 135 percent on average based on the first 120 days of initial production, the company said in a news release.
Current production based on field estimates remains at 19,400 boepd even though no new wells have been brought on since March, InPlay said, adding that it now expects 2025 average production to be at the upper end of its guidance range.
In addition, InPlay said strong capital efficiencies are expected to result in capital spending landing in the lower half of its capital budget of $53 million to $60 million.
For the remainder of the year, InPlay said it plans to drill 5.0 to 5.5 net Cardium wells in Pembina. InPlay’s second-half drilling campaign started this month, with the spudding of a three-well pad near the company’s top producing Cardium wells and are expected to be in production around the beginning of October.
“The application of InPlay’s drilling and completion techniques to the acquired assets is expected to drive continued strong performance from new wells with additional capital directed to facility upgrades, optimization and required infrastructure projects,” the company said.
Delek Acquires Stake in InPlay
Earlier in the month, Delek Group Ltd. closed its acquisition of around 9.1 million shares in InPlay from Obsidian Energy Ltd.
Delek has now become a 32.7 percent shareholder of InPlay, bringing “a proven track record of value creation in the energy sector,” InPlay said in an earlier statement.
Delek holds a 45 percent working interest in the largest natural gas field in the Mediterranean, with an estimated 23 trillion cubic feet of recoverable natural gas. Further, Delek has been instrumental in the growth of Ithaca Energy plc, where they hold a 52 percent equity stake and has overseen production growth from 30,000 boepd to over 120,000 boepd since 2019, according to the statement.
In connection with closing of the transaction, InPlay has appointed Ehud Erez and Tamir Polikar to its board. Erez has served as the board chairman of Delek since 2020 and has over 30 years of experience in the energy and real estate sectors, while Polikar has served as the company’s CFO since 2020 and has over 30 years of experience in the energy and real estate sectors, the statement said. Stephen Loukas and Peter Scott have stepped down from the board.
“We are thrilled to welcome the Delek Group to our organization as part of their impressive oil and gas portfolio,” InPlay President and CEO Doug Bartole said.
“We look forward to partnering with Delek to continue building InPlay into a long-term, sustainable, growth-oriented Canadian oil and gas producer, with a strong focus on per-share growth and consistent returns to shareholders,” Bartole added.
“Delek is excited to partner with InPlay as our investment in the Canadian energy sector,” Erez said. “We identified Canada as a strong and stable jurisdiction for our oil and gas investment, and InPlay stood out with its dynamic team and deep expertise in the Canadian market. InPlay has built a formidable track record through strong operational performance and strategic, accretive acquisitions. We look forward to seeing InPlay’s continued growth and continued success”.
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