09:00 AM EST, 02/04/2025 (MT Newswires) -- InPlay Oil ( IPOOF ) on Tuesday said its board approved a 2025 capital program between $41 million and $44 million focused on maximizing free adjusted funds flow (FAFF).

The capital program includes forecasted production of 8,650 - 9,150 boe/d representing a 2% increase from 2024 based on the mid-point, 20% FAFF yield and 11% dividend yield and expects total return of 22%. InPlay plans to utilize excess FAFF to reduce debt and is forecasted to exit 2025 with net debt between $52 million and $58 million.

"InPlay anticipates increased volatility in commodity prices throughout 2025 as the global energy market digests the impact of US tariffs, US sanctions on key oil producing countries and global demand in general," the company said in a statement.

The company plans to allocate a "significant" portion of its 2025 capital budget to PCU7 and plans to drill about 6.0 net extended reach horizontal (ERH) Cardium wells in PCU7. InPlay also intends to drill an additional 1.0 - 2.0 net Cardium ERH wells in Pembina and Willesden Green, which the company believes will benefit from cost savings leveraging the drilling and completions operational enhancements achieved in PCU7.

In the first quarter of 2025, the company plans to drill three (3.0 net) ERH Cardium wells in PCU7. Drilling operations began in January and production is expected to be on-line by March, with majority of its remaining 2025 capital program taking place in the second half of the year.

Shares of the company closed down $0.080, or 4.7%, to $1.61 on Monday on the Toronto Stock Exchange.