10:55 AM EDT, 05/08/2025 (MT Newswires) -- InPlay Oil's (IPO.TO) shares were up near 12% at last look Thursday on the TSX as the company reported first-quarter results that appear to have been overshadowed by the updating of its 2025 capital budget post closing of the Pembina asset acquisition, that is already providing "exceptional results from the first quarter drilling program".

Following closing of the "highly accretive" acquisition on April 7, 2025, InPlay said it had provided initial pro forma guidance inclusive of the assets. It added guidance "reflects the exceptional operational performance across the company's expanded asset base, while taking into account the current volatile commodity price environment. It also underscores InPlay's continued commitment to maximizing free cash flow to support ongoing debt reduction, while positioning the company to support its return to shareholder strategy."

The company booked a comprehensive loss of $2.9 million, or a loss of $0.19 basic and $0.18 diluted per share, compared to a comprehensive income of near $1.7 million, or $0.11 per basic and diluted share a year earlier. There was an analyst consensus forecast of $0.17 per share compiled by FactSet.

Meanwhile, the board approved an updated capital program of $53 million to $60 million for 2025, and InPlay plans to drill about 5.5 to 7.5 net extended reach horizontal cardium wells over the rest of the year.

InPlay said first quarter results "exceeded expectations, driven in part by the outperformance of newly drilled wells" at Pembina Cardium Unit #7. It noted a two well pad delivered average initial production rates of 677 boe/d (75% light oil and NGLs) over the first 30 days and 492 boe/d (66% light oil and NGLs) over the first 60 days, both significantly above expectations. "Over the initial two-month period, production from these wells was more than 100% above our type curve. These wells ranked in the top-ten for production rates for all Cardium wells in the basin for the month of March."

Complementing InPlay's "strong operational momentum", Obsidian drilled four (4.0 net) wells on the acquired assets in the first quarter. The first two (2.0 net) wells, which started production mid quarter, are outperforming internal type curve by approximately 50% with average IP rates of 304 boe/d (91% light oil and NGLs) over the first 30 days and 295 boe/d (85% light oil and NGLs) over the first 60 days. The remaining two wells, brought online in the final days of the first quarter, are performing more than 350% above our internal type curve, with average IP rates per well of 887 boe/d (88% light oil and NGLs) over their initial 30 day period.

"The company is very excited about the highly accretive Pembina Acquisition announced February 19, 2025 and had anticipated strong results from the combined assets. The exceptional results from the first quarter drilling program, combined with the outperformance of base production, have driven current field estimated production to approximately 21,500 boe/d (64% light oil and NGLs) significantly exceeding what we had initially forecasted at the announcement of the acquisition. Given the current volatility in commodity prices, this material outperformance provides the company with significant flexibility to scale back our capital program, providing "more for less" while maintaining our production forecasts, allowing for more aggressive debt repayment even in a lower pricing environment."

Price: 7.53, Change: +0.80, Percent Change: +11.89