Earnings release
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InPlay Oil Corp. | #2000, 350 – 7th Ave SW | Calgary, AB | T2P 3N9 InPlay Oil Corp. Announces Third Quarter 2025 Financial and Operating Results , Increased 2025 Production Guidance and Reduced Capital Spending November 12, 2025 - Calgary Alberta – InPlay Oil Corp. (TSX: IPO) (OTCQX: IPOOF) (“InPlay” or the “Company”) announces its financial and operating results for the three and nine months ended September 30, 2025. InPlay’s unaudited interim financial statements and notes, and Management’s Discussion and Analysis (“MD&A”) for the three and nine months ended September 30, 2025 will be available at “www.sedarplus.ca” and the Company’s website at “www.inplayoil.com”. An updated corporate presentation will be available on our website in due course. During the third quarter, InPlay continued to build on the momentum generated by its April 7, 2025 acquisition of Cardium -focused light oil assets in the Pembina area of Alberta (the “Acquisition”) . Due to the outperformance of base production and material outperformance of our 2025 drilling program, current production rates are ahead of forecast at 19,750 boe/d (61% light oil and NGLs) , with two (2.0 net) operated ERH wells scheduled to come onstream in the next week. As a result, InPlay is increasing its 2025 average annual production guidance to 16,900 boe/d – 17,100 boe/d(1) (60% - 62% light oil and NGLs), up 4% from the mid-point of the previous guidance range of 16,000 boe/d – 16,800 boe/d(1) (60% - 62% light oil and NGLs). The third quarter marked InPlay’s most active capital program of the year , as the Company advanced the development of its expanded inventory of high-quality locations . InPlay drilled six (5.2 net) wells in Pembina during the third quarter. Three (3.0 net) of these wells were completed through quarter end and brought on production in mid-October and two (2.0 net) wells are currently being completed and are expected to be brought on production in mid-November. The Company also participated in one (0.2 net) non-operated well, which was drilled, completed, and brought on production in September. The efficient application of InPlay’s drilling and completion techniques on the acquired assets has led to strong well performance and significant capital cost reductions of approximately 20% compared to recent nearby locations of other operators, with InPlay’s wells having 50% more frac stages. The three (3.0 net) wells brought on production in October have delivered strong results, with initial production (“IP”) rates of 5 15 boe/d (85% light oil and NGLs) per well over the first 29 days of production. In addition, the seven (7.0 net) Extended Reach Horizontal (“ERH”) wells brought onstream in February/March of 2025 continue to perform at or above internal expectations, highlighted by two (2.0 net) wells which paid out in approximately 75 days and have averaged 700 boe/d to date, approximately 26 0% above type curve . Cumulatively, all wells drilled in the first quarter of 2025 have produced at an average rate of 410 boe/d over their first 8 – 9 months, which is approximately 73% ahead of type curves. InPlay’s 2025 drilling program is now complete, with 8.2 net wells drilled this year, with an additional 4.0 net wells drilled on the acquired assets in the first quarter . InPlay’s disciplined approach in this focused area has resulted in strong capital efficiencies, with forecasted 2025 exploration and development expenditures expected to be approximately $53 million, at the lower end of our previous guidance range of $53 - $60 million. This includes the acceleration of our 2026 capital program by building three leases and initiating drilling operations on our first 2026 planned well before year-end. With the majority of capital spending completed by the end of October, and new wells coming online from the third and fourth quarter, InPlay expects to deliver strong free adjusted funds flow (“FAFF”)(3) in the fourth quarter. The oil and gas industry continues to experience volatile commodity prices. Oil and related product inventories in the United States remain near five-year lows which provides cushion as there are many varying near term opinions around supply and demand. The majority of analysts agree this is setting the stage for a significant price recovery in 2026. Average Western Canadian and United States natural gas inventories remain close to five-year highs. In Canada, producers have increased production in anticipation of increased demand from LNG Canada Phase 1, which became operational earlier this year. As LNG Canada approaches full design capacity , this is expected to improve forward AECO prices, especially from the lows experienced in the third quarter of 2025 ($0.63/mcf) and 2024 ($0. 69/mcf), which were the lowest average quarterly prices on record dating back to
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2 InPlay Oil Corp. | #2000, 350 – 7th Ave SW | Calgary, AB | T2P 3N9 1988. To mitigate downside risk, InPlay has implemented a comprehensive hedging program providing protection against current market volatility. Details of the Company’s current hedges are provided in the “Hedging Summary” section of the Reader Advisories. The continued development of our high-quality assets combined with InPlay’s strong operational track record , positions the Company to deliver sustainable FAFF for many years ahead. InPlay remains focused on disciplined capital spending in the current commodity price environment, prioritizing FAFF, long-term debt reduction, per- share growth and continuing our return to shareholder strategy. Third Quarter 2025 Highlights Achieved average quarterly production of 18,970 boe/d(1) (60% light crude oil and NGLs), a 131% increase from Q3 2024. Third quarter l ight oil weighting increased to approximately 50% driving stronger per boe netbacks and returns. Generated strong quarterly adjusted funds flow (“AFF”)(2) of $26.8 million ($0.96 per basic share(4)) a 104% increase from Q3 2024 despite a 14% decrease in WTI prices. Realized operating income(3) of $34.7 million, a 112% increase compared to Q3 2024. Returned $7.5 million to shareholders via monthly dividends (9% yield relative to current share price). Since November 2022, InPlay has distributed $60 million in dividends, including dividends declared to date in the fourth quarter. Third Quarter 2025 Financial & Operations Overview: Quarterly production averaged 18,970 boe/d (1) (60% light crude oil and NGLs) , exceeding expectations by approximately 700 boe/d despite no new wells coming on production for the past six and a half months . This strong performance was driven by low decline base production and continued outperformance of wells drilled in the first quarter of 2025, as outlined above. September production was affected by a heavy turnaround period, including downtime at non-operated and operated facilities and four days of planned outage to support expansion of an operated gas plant in our second largest producing area. These items impacted production by approximately 750 boe/d (50% light oil and NGLs) during the month. The impacted production had a higher gas weighting as we shut-in lower rate oil wells with higher gas rates in this period, which mitigated the revenue impact and had the indirect benefit of deferring natural gas production to realize stronger natural gas pricing in the fourth quarter. In the third quarter, three (3.0 net) ERH wells were drilled on the acquired assets with average length of 2.2 miles. Drilling operations averaged 11 days per well, approximately 7 days faster than offsetting wells recently drilled by other operators. Initial production from these wells, which are still in the clean-up stage, is comparable with other wells that have significantly exceeded type curves at this stage. Additionally, InPlay drilled two (2.0 net) ERH wells, which are currently being completed and are expected to come on production in mid-November. Drilling operations on these wells averaged 10 days per well, approximately 5 days faster than offsetting wells recently drilled by other operators. Due to production exceeding forecast, completion operations were strategically delayed on these two wells to align with the stronger winter natural gas pricing season, and to provide a higher production rate heading i nto 2026. The Company also completed a significant operated gas plant expansion ahead of schedule and with minimal downtime, doubling the plant’s capacity from 5 mmscfd to 10 mmscfd. Royalty rates increased to 1 5.7% in the third quarter compared to 1 2.9% in the second quarter of 2025. The increase was primarily driven by the strong performance and exceptionally short payout periods of two wells drilled in the first quarter of 2025. These wells came off the Crown royalty holiday period earlier than anticipated, resulting in higher royalty payments for the quarter. Looking ahead, royalty rates are expected to decrease in the fourth quarter, as five new wells are brought on production with the Crown royalty holiday period.
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3 InPlay Oil Corp. | #2000, 350 – 7th Ave SW | Calgary, AB | T2P 3N9 Quarterly operating costs were higher due to slightly higher well servicing costs, additional facility maintenance costs associated with turnarounds and one-time prior period costs being recognized in the quarter . The Company’s hedging program realized $2 million in hedging gains in the third quarter , predominantly driven by the natural gas hedges placed as protection for the low gas price environment that was anticipated. InPlay generated AFF of $26.8 million ($0.96 per basic share) a 104% increase from the third quarter of 2024. These results were achieved despite a 14% decline in WTI pricing and lower than forecasted natural gas prices, with AECO pricing being 8% lower than the previous multi-decade low levels experienced in Q3 2024. During the Q3 2025, the Company paid $7.5 million in dividends, bringing the total dividends paid for the first nine months of 2025 to $19.5 million. Financial and Operating Results: (CDN) ($000’s) Three months ended September 30 Nine months ended September 30 2025 2024 2025 2024 Financial Oil and natural gas sales 79.3 34.2 209.9 113.7 Adjusted funds flow(2) 26.8 13.1 83.7 49.8 Per share – basic(3)(5) 0.96 0.87 3.59 3.31 Per share – diluted(3) (5) 0.96 0.84 3.59 3.18 Per boe(3) 15.36 17.36 18.93 21.40 Comprehensive income (loss) (4.8) 0.1 (10.9) 7.2 Per share – basic(5) (0.17) 0.01 (0.47) 0.48 Per share – diluted(5) (0.17) 0.01 (0.47) 0.47 Dividends 7.5 4.1 19.5 12.3 Per share(5) 0.27 0.27 0.84 0.82 Capital expenditures – PP&E and E&E 22.3 25.2 40.8 56.8 Property acquisitions (dispositions) (1.7) (0.0) 291.9 (0.0) Net debt(2) (228.4) (68.0) (228.4) (68.0) Shares outstanding(5) 27.8 15.0 27.8 15.0 Basic weighted-average shares(5) 27.8 15.0 23.3 15.0 Diluted weighted-average shares(5) 27.8 15.5 23.3 15.5 Operational Daily production volumes Light and medium crude oil (bbls/d) 9,122 3,279 7,647 3,467 Natural gas liquids (boe/d) 2,334 1,418 2,105 1,448 Conventional natural gas (Mcf/d) 45,081 21,052 38,596 21,446 Total (boe/d) 18,970 8,206 16,185 8,489 Realized prices(3) Light and medium crude oil & NGLs ($/bbls) 72.35 75.77 72.88 77.33 Conventional natural gas ($/Mcf) 0.75 0.76 1.51 1.63 Total ($/boe) 45.47 45.32 47.50 48.87 Operating netbacks ($/boe)(4) Oil and natural gas sales 45.47 45.32 47.50 48.87 Royalties (7.13) (6.78) (6.56) (6.33) Transportation expense (0.87) (0.88) (0.85) (0.99) Operating costs (17.61) (16.01) (16.06) (15.39) Operating netback(4) 19.86 21.65 24.03 26.16 Realized gain (loss) on derivative contracts 1.07 1.24 0.35 0.58 Operating netback (including realized derivative contracts) (4) 20.93 22.89 24.38 26.74
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4 InPlay Oil Corp. | #2000, 350 – 7th Ave SW | Calgary, AB | T2P 3N9 On behalf of the entire InPlay team and our Board of Directors, we extend our sincere gratitude to our shareholders for their continued support as we execute our strategy focused on disciplined growth, shareholder returns, and long-term value creation. We are excited by our operational momentum and strong production performance, which positions the Company for a successful, capital efficient 2026. We look forward to sharing our 2026 capital budget in January. Notes: 1. See “Production Breakdown by Product Type” at the end of this press release. 2. Capital management measure. See “Non-GAAP and Other Financial Measures” contained within this press release. 3. Non-GAAP financial measure or ratio that does not have a standardized meaning under International Financial Reporting Standards (IFRS) and GAAP and therefore may not be comparable with the calculations of similar measures for other companies. Please refer to “Non -GAAP and Other Financial Measures” contained within this press release and in our most recently filed MD&A. 4. Supplementary measure. See “Non-GAAP and Other Financial Measures” contained within this press release. 5. Common share and per common share amounts have been updated to reflect the six for one (6:1) common share consolidation effective April 14, 2025. For further information please contact: Doug Bartole President and Chief Executive Officer InPlay Oil Corp. Telephone: (587) 955-0632 Darren Dittmer Chief Financial Officer InPlay Oil Corp. Telephone: (587) 955-0634
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5 InPlay Oil Corp. | #2000, 350 – 7th Ave SW | Calgary, AB | T2P 3N9 Reader Advisories Hedging Summary Q4/25 Q1/26 Q2/26 Q3/26 Q4/26 Q1/27 Natural Gas AECO Swap (mcf/d) 15,800 15,165 14,215 14,215 8,560 4,265 Hedged price ($AECO/mcf) $2.65 $2.85 $3.00 $3.00 $3.05 $3.65 Natural Gas AECO Costless Collar (mcf/d) 12,640 12,320 11,375 11,375 16,400 18,950 Hedged price ($AECO/mcf) $2.20 - $3.40 $2.25 - $3.50 $2.45 - $3.50 $2.45 - $3.50 $2.80 - $4.40 $2.90 - $4.85 Crude Oil WTI Swap (bbl/d) 2,500 3,750 2,000 2,000 2,000 2,000 Hedged price ($USD WTI/bbl) $62.20 $60.30 $60.90 $60.90 $61.05 $61.05 Crude Oil WTI Costless Collar (bbl/d) 2,300 - - - - - Hedged price ($USD WTI/bbl) $56.30 - $62.70 - - - - - Crude Oil WTI Three-way Collar (bbl/d) 1,300 1,000 2,500 1,750 1,750 - Low sold put price ($USD WTI/bbl) $59.50 $50.00 $50.00 $50.00 $50.00 - Mid bought put price ($USD WTI/bbl) $67.50 $57.50 $57.50 $57.50 $57.50 - High sold call price ($USD WTI/bbl) $83.00 $72.10 $71.95 $72.15 $72.15 - USD/CAD Average Forward Rate Swap (US $’000s ) 8,000 2,000 2,000 - - - Hedged rate (USD/CAD) 1.388 1.379 1.379 - - - USD/CAD Costless Collar (US $’000s ) - 2,000 2,000 - - - Hedged rate (USD/CAD) - $1.35 - $1.40 $1.35 - $1.40 - - - USD/CAD Variable Rate Collar (USD/CAD) - - - 3,750 3,750 - Put strike rate (USD/CAD) - - - $1.35 $1.35 - Restrike rate (USD/CAD) - - - $1.38 $1.38 - Call Strike rate (USD/CAD) - - - $1.40 $1.40 - Electricity AESO Swap (kW) 1,000 1,000 1,000 1,000 1,000 1,000 Hedged price ($kWh) $0.06217 $0.06217 $0.06217 $0.06217 $0.06217 $0.06217 Non-GAAP and Other Financial Measures Throughout this document and other materials disclosed by the Company, InPlay uses certain measures to analyze financial performance, financial position and cash flow. These non -GAAP and other financial measures do not have any standardized meaning prescribed under GAAP and therefore may not be comparable to similar measures presented by other entities. The non-GAAP and other financial measures should not be considered alternatives to, or more meaningful than, financial measures that are determined in accordance with GAAP as indicators of the Company performance. Management believes that the presentation of these non -GAAP and other financial measures provides useful information to shareholders and investors in understanding and evaluating the Company’s ongoi ng operating performance, and the measures provide increased transparency and the ability to better analyze InPlay’s business performance against prior periods on a comparable basis. Non-GAAP Financial Measures and Ratios Included in this document are references to the terms “free adjusted funds flow”, “operating income”, “operating netback per boe”, “operating income profit margin” and “Net Debt to EBITDA”. Management believes these measures and ratios are helpful supplementary measures of financial and operating performance and provide users with similar, but potentially not comparable, information that is commonly used by other oil and natural gas companies. These terms do not have any standardized meaning prescribed by GAAP and should not be considered an alternative to, or more meaningful than “profit before taxes”, “profit and comprehensive income”, “adjusted funds flow”, “capital expenditures”, “net debt” or assets and liabilities as determined in accordance with GAAP as a measure of the Company’s performance and financial position. Free Adjusted Funds Flow/FAFF per share Management considers FAFF and FAFF per share important measures to identify the Company’s ability to improve its financial co ndition through debt repayment and its ability to provide returns to shareholders. FAFF should not be considered as an alternative to or more meaningful than AFF as determined in accordance with GAAP as an indicator of the Company’s performance. FAFF is calculated by the Company as AFF less exploration and development capital expenditures and property dispositions (acquisitions) and is a measure of the cashflow remaining after capital expenditures that can be used for additional capital activity, corporate acquisitions, repayment of debt or decommissioning expenditures or potentially return of capital to shareholders. FAFF per share is calculated by the Company as FAFF divided by weighted average shares outstanding. Refer below for a calculation of Free Adjusted Funds Flow and FAFF per share. Refer to the “Forward Looking Information and Statements” section for a calculation of forecast FAFF and FAFF per share.
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6 InPlay Oil Corp. | #2000, 350 – 7th Ave SW | Calgary, AB | T2P 3N9 Three Months Ended September 30 Nine Months Ended September 30 2025 2024 2025 2024 Adjusted funds flow 26,800 13,104 83,665 49,774 Exploration and dev. capital expenditures 22,305 25,178 40,806 56,864 Property acquisitions (dispositions) - (13) 343 (37) Free adjusted funds flow 4,495 (12,061) 42,516 (7,053) Weighted average number of common shares (basic) 27,800 15,020 23,296 15,024 FAFF per share 0.16 (0.80) 1.83 (0.47) Free Adjusted Funds Flow Yield InPlay uses “free adjusted funds flow yield” as a key performance indicator. When presented on a corporate basis, free adjusted funds flow is calculated by the Company as free adjusted funds flow divided by the market capitalization of the Company. When pr esented on an asset basis for acquisition purposes, free adjusted funds flow is calculated by the Company as free adjusted funds flow divided by the operating income of the Acquired Assets. Management considers FAFF yield to be an important performance indicator as it demonstrates a Company or asset’s ability to generate cash to pay down debt and provide funds for potential distributions to shareholders. Refer to the “Forward Looking Information and Statements” section for a calculation of forecast FAFF Yield. Operating Income/Operating Netback per boe/Operating Income Profit Margin InPlay uses “operating income”, “operating netback per boe” and “operating income profit margin” as key performance indicator s. Operating income is calculated by the Company as oil and natural gas sales less royalties, operating expenses and transportation expenses and is a measure of the profitability of operations before administrative, share-based compensation, financing and other non-cash items. Management considers operating income an important measure to evaluate its operational performance as it demonstrates its field level profitability. Operating income should not be considered as an alternative to or more meaningful than net income as determined in accordance with GAAP as an indicator of the Company’s performance. Operating netback per boe is calculated by the Company as operating income divided by average production for the respective period. Management considers operating netback per boe an important measure to evaluate its operational performance as it demonstrates its field level profitability per unit of production. Operating income profit margin is calculated by the Company as operating income as a percentage of oil and natural gas sales. Management considers operating income profit margin an important measure to evaluate its operational perfor mance as it demonstrates how efficiently the Company generates field level profits from its sales revenue. Refer below for a calculation of operating income, operating netback per boe and operating income profit margin. Refer to the “Forward Looking Information and Statements” section for a calculation of forecast operating income, operating netback per boe and operating income profit margin. (thousands of dollars) Three Months Ended September 30 Nine Months Ended September 30 2025 2024 2025 2024 Revenue 79,347 34,217 209,922 113,674 Royalties (12,436) (5,122) (29,005) (14,711) Operating expenses (30,728) (12,085) (70,977) (35,786) Transportation expenses (1,513) (667) (3,759) (2,296) Operating income 34,670 16,343 106,181 60,881 Sales volume (Mboe) 1,745.2 755.0 4,418.6 2,325.9 Per boe Revenue 45.47 45.32 47.50 48.87 Royalties (7.13) (6.78) (6.56) (6.33) Operating expenses (17.61) (16.01) (16.06) (15.39) Transportation expenses (0.87) (0.88) (0.85) (0.99) Operating netback per boe 19.86 21.65 24.03 26.16 Operating income profit margin 44% 48% 51% 54% Net Debt to EBITDA Management considers Net Debt to EBITDA an important measure as it is a key metric to identify the Company’s ability to fund financing expenses, net debt reductions and other obligations. EBITDA is calculated by the Company as adjusted funds flow before in terest expense. When this measure is presented quarterly, EBITDA is annualized by multiplying by four. When this measure is presented on a trailing twelve month basis, EBITDA for the twelve months preceding the net debt date is used in the calculation. This measure is consistent with the EBITDA formula prescribed under the Company's Credit Facility. Net Debt to EBITDA is calculated as Net Debt divided by EBITDA. Refer to the “Forward Looking Information and Statements” section for a calculation of forecast Net Debt to EBITDA. Capital Management Measures Adjusted Funds Flow Management considers adjusted funds flow to be an important measure of InPlay’s ability to generate the funds necessary to finance capital expenditures. Adjusted funds flow is a GAAP measure and is disclosed in the notes to the Company’s financial statements for the three and nine months ended September 30, 2025. All references to adjusted funds flow throughout this document are calculated as funds flow adjusting for decommissioning expenditures . Decommissioning expenditures are adjusted from funds flow as they are incurred on a discretionary and irregular basis and are primarily incurred on previous operating assets. The Company also presents adjusted funds flow per share whereby per share amounts are calculated using weighted average shares outstanding consistent with the calculation of profit per common share.
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7 InPlay Oil Corp. | #2000, 350 – 7th Ave SW | Calgary, AB | T2P 3N9 Net Debt Net debt is a GAAP measure and is disclosed in the notes to the Company’s financial statements for the three and nine months ended September 30, 2025. The Company closely monitors its capital structure with the goal of maintaining a strong balance sheet to fund the future gro wth of the Company. The Company monitors net debt as part of its capital structure. The Company uses net debt (bank debt pl us accounts payable and accrued liabilities less accounts receivables and accrued receivables, prepaid expenses and deposits and inventory) as an alternative measure of outstanding debt. Management considers net debt an important measure to assist in assessing the liquidity of the Company. Supplementary Measures "Average realized crude oil price" is comprised of crude oil commodity sales from production, as determined in accordance with IFRS, divided by the Company's crude oil volumes. Average prices are before deduction of transportation costs and do not include gains and losses on financial instruments. "Average realized NGL price" is comprised of NGL commodity sales from production, as determined in accordance with IFRS, divided by the Company's NGL volumes. Average prices are before deduction of transportation costs and do not include gains and losses on financial instruments. "Average realized natural gas price" is comprised of natural gas commodity sales from production, as determined in accordance with IFRS, divided by the Company's natural gas volumes . Average prices are before deduction of transportation costs and do not include gains and losses on financial instruments. "Average realized commodity price" is comprised of commodity sales from production, as determined in accordance with IFRS, divided by the Company's volumes. Average prices are before deduction of transportation costs and do not include gains and losses on financial instruments. "Adjusted funds flow per weighted average basic share" is comprised of adjusted funds flow divided by the basic weighted average common shares. "Adjusted funds flow per weighted average diluted share" is comprised of adjusted funds flow divided by the diluted weighted average common shares. "Adjusted funds flow per boe" is comprised of adjusted funds flow divided by total production. Forward-Looking Information and Statements This document contains certain forward–looking information and statements within the meaning of applicable securities laws. The use of any of the words “expect”, “anticipate”, “continue”, “estimate”, “may”, “will”, “project”, “should”, “believe”, “plans”, “intends”, “forecast” and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the foregoing, this document contains forward -looking information and statements pertaining to the following: the Company’s business strategy, milestones and objectives; the Company’s increased 2025 annual production guidance; that InPlay’s disciplined approach to its drilling program will result in exploration and development expenditures being in the lower end of the previously announced capital budget; that the Company will continue to prioritize free cash flow generation, long term debt reduction, per share growth and continuing the return to shareholder strategy; InPlay’s continued return of capital to shareholders through dividends; the anticipated timing of completion of the two wells in the Pembina area; the acceleration of InPlay’s 2026 capital program and the anticipated benefits thereof; that InPlay will be able to initiate drilling operations on the first 2026 planned well before year-end and the anticipated timing and benefits therefrom; InPlay’s expectations regarding field estimates of current production rates; the anticipated timing of two ERH wells coming on stream and the anticipated benefits thereof; that new wells will come online in the fourth quarter; I nPlay’s expectations that they will be able to deliver strong FAFF in the fourth quarter; InPlay’s expectations regarding the oil and gas industry; the anticipated timing of LNG Canada and the anticipated benefits thereof; InPlay’s current and future commodity hedges and the anticipated benefits thereof; expectations regarding the Company’s 2025 capital program; 2025 revised fo recast average production; 2025 guidance based on the planned 2025 capital program and all associated underlying assumptions set forth in this document including, without limitation, forecasts of 2025 annual average production levels, adjusted funds flow, free adjusted funds flow, Net Debt/EBITDA ratio, operating income profit margin, net debt and Management’s belief that the Company can grow some or all of these attributes and specified measures; light crude oil and NGLs weighting estimates; expectations regarding future commodity prices; future oil and natural gas prices; future liquidity and financial capacity; expectations regarding the ability to realize cost efficiencies and the anticipated benefits therefrom; future results from o perations and operating metrics; future costs, expenses and royalty rates; future interest costs; the exchange rate between the $US and $Cdn; future development, exploration, acquisition, development and infrastructure activities and related capital expenditures, including InPlay’s planned 2025 capital program; the timing of release of InPlay’s 2026 capital program; the amount and timing of capital projects; InPlay’s expectations regarding its ability to generate FAFF and reduce debt; InPlay’s ability to remain flexible and make decisions that maintain financial strength; the timing of release of the Company’s corporate presentation; methods of funding our capital program; and other such similar statements. The internal projections, expectations, or beliefs underlying our Board approved 2025 capital budget and associated guidance are subject to change in light of, among other factors, changes to U.S. economic, regulatory and/or trade policies (including tarif fs), the impact of world events including the Russia/Ukraine conflict and war in the Middle East, ongoing results, prevailing economic circumstances, volatile commodity pr ices, and changes in industry conditions and regulations. InPlay’s 2025 financial out look and revised guidance provides shareholders with relevant information on management’s expectations for results of operations, excluding any potential acquisitions or dispositions, for such time periods based upon the key assumptions outlined herein. Readers are cautioned that events or circumstances could cause capital plans and associated results to differ materially from those predicted and InPlay’s revised guidance for 2025 may not be appropriate for other purposes. Accordingly, undue reliance should not be placed on same. Forward-looking statements or information are based on a number of material factors, expectations or assumptions of InPlay which have been used to develop such statements and information, but which may prove to be incorrect. Although InPlay believes that the expectations reflected in such forward - looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because InPlay can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified herein, assumptions have been made regarding, among other things: the current U.S. economic, regulatory and/or trade policies; the impact of increasing competition; the general stability of the economic and political environment in which InPlay operates; the timely receipt of any required regulatory approvals; the ability of InPlay to obtain qualified staff, equipment and services in a timely and cost efficient manner; drilling results; the ability of the operator of the projects in which InPlay has an interest in to operate the field in a safe, efficient and effective manner; the ability of InPlay to obtain debt financing on acceptable terms; the anticipated tax treatment of the monthly base dividend; that (i) the tariffs that are currently in effect on goods exported from or imported into Canada continue in effect for an extended period of time, the tariffs that have been threatened are implemented, that tariffs that are currently suspended are reactivated, the rate or scope of tariffs are increased, or new tariffs are imposed, including on oil and natural gas, (ii) the U.S. and/or Canada imposes any other form of tax, restriction or prohibition on the import or export of products from one country to the other, including on oil and natural gas, and (iii) the tariffs imposed or threatened to be imposed by the U.S. on other countries and retaliatory tariffs imposed or threatened to be imposed by other countries on the U.S., will
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8 InPlay Oil Corp. | #2000, 350 – 7th Ave SW | Calgary, AB | T2P 3N9 trigger a broader global trade war which could have a material adverse effect on the Canadian, U.S. and global economies, and by extension the Canadian oil and natural gas industry and the Company, including by decreasing demand for (and the price of) oil and natural gas, disrupting supply chains, increasing costs, causing volatility in global financial markets, and limiting access to financing; the duration and impact of tariffs that are currently in effect on goods exported from or imported into Canada, and that other than the tariffs that are currently in effect, neither the U.S. nor Canada (i) increases the rate or scope of such tariffs, reenacts tariffs that are currently suspended, or imposes new tariffs, on the import of goods from one country to the other, including on oil and natural gas, and/or (ii) imposes any other form of tax, restriction or prohibition on the import or export of products fr om one country to the other, including on oil and natural gas;’ changes in political and economic conditions, including risks associated with tariffs, export taxes, export restrictions or other trade actions; impacts of any tariffs imposed on Canadian exports into the United States by the Trump administration and any retaliatory steps taken by the Canadian federal government; that InPlay’s results and operations could be adversely affected by economic or geopolitical developments, including protectionist trade policies such as tariffs, or other events; conditions in international markets, including social and political conditions, civil unrest, terrorist activity, governmental changes, restrictions on the ability to transfer capital across borders, tariffs and other protectionist measures; field production rates and decline rates; the ability to replace and expand oil and natural gas reserves through acquisition, development and exploration; the timing and cost of pipeline, storage and facility construction and the ability of InPlay to secure adequate product transportation; future commodity prices; that various conditions to a shareholder return strategy can be satisfied; the ongoing impact of the Russia/Ukraine conflict and war in th e Middle East; currency, exchange and interest rates; regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which InPlay operates; and the ability of InPlay to successfully market its oil and natural gas products. Without limitation of the foregoing, readers are cautioned that the Company’s future dividend payments to shareholders of the Company, if any, and the level thereof will be subject to the discretion of the Board of Directors of InPlay. The Company’s dividend policy and funds available for the payment of dividends, if any, from time to time, is dependent upon, among other things, levels of FAFF, leverage ratios, financial requirements for the Company’s operations and execution of its growth strategy, fluctuations in commodity prices and working capital, the timing and amount of capital expenditures, credit facility availability and limitations on distributions existing thereunder, and other factors beyond the Company’s con trol. Further, the ability of the Company to pay dividends will be subject to applicable laws, including satisfaction of solvency tests under the Business Corporations Act (Alberta), and satisfaction of certain applicable contractual restrictions contained in the agreements governing the Company’s outstanding indebtedness. Further, the actual amount, the declaration date, the record date and the payment date of any dividend are subject to the discretion of the InPlay Board of Directors. There can be no assurance that InPlay will pay dividends in the future. The forward-looking information and statements included herein are not guarantees of future performance and should not be unduly relied u pon. Such information and statements, including the assumptions made in respect thereof, involve known and unknown risk s, uncertainties and other factors that may cause actual results or events to defer materially from those anticipated in such forward -looking information or statements including, without limitation: changes in industry regulations and legislation (includin g, but not limited to, tax laws, royalties, and environmental regulations); that (i) the tariffs that are currently in effect on goods exported from or imported into Canada continue in effect for an extended period of time, the tariffs that have been threatened are implemented, that tariffs that are currently suspended are reactiv ated, the rate or scope of tariffs are increased, or new tariffs are imposed, including on oil and natural gas, (ii) the U.S. and/or Canada imposes any other form of tax, restriction or prohibition on the import or export of products from one country to the other, including on oil and natural gas, and (iii) the tariffs imposed or threatened to be imposed by the U.S. on other countries and retaliatory tariffs imposed or threatened to be imposed by other countries on the U.S., will trigger a broader global tr ade war which could have a material adverse effect on the Canadian, U.S. and global economies, and by extension the Canadian oil and natural gas industry and the Company, including by decreasing demand for (and the price of) oil and natural gas, disrupting supply chains, increasing costs, causing volatility in global financial markets, and limiting access to financing; ‘‘the continuing impact of the Russia/Ukraine conflict and war in the Middle East; potential changes to U.S. economic, regulatory and/or trade policies as a result of a change in government; inflation and the risk of a global recession; changes in our planned capital program; changes in our approach to shareholder returns; changes in commodity prices and other assumptions outlined herein; the risk that dividend payments may be reduced, suspended or cancelled; the potential for variation in the quality of th e reservoirs in which InPlay operates; changes in the demand for or supply of InPlay’s products; unanticipated operating results or production declines; changes in tax or environm ental laws, royalty rates or other regulatory matters; changes in development plans or strategies of InPlay or by third party operators of InPlay’s properties; changes in InPlay’s credit structure, increased debt levels or debt service requirements; inaccurate estimation of InPlay’s light crude oil and natural gas reserve and resource volumes; limited, unfavorable or a lack of access to capital markets; increased costs; a lack of adequate insurance coverage; the impact of competitors; and certain other risks detailed from time-to-time in InPlay’s continuous disclosure documents filed on SEDAR+ including InPlay’s Annual Information Form dated March 31, 2025 and the annual management’s discussion & analysis for the year ended December 31, 2024. This document contains future -oriented financial information and financial outlook information (collectively, “FOFI”) about InPlay’s financial and leverage targets and objectives, potential dividends, and beliefs underlying our Board approved 2025 capital budget and associated guidance, all of which are subject to the same assumptions, risk factors, limitations, and qualifications as set forth in the above paragraphs. The actual results of operations of InPlay and the resulting financial results will likely vary from the amounts set forth in this document and such variation may be material. InPlay and its management believe that the FOFI has been prepared on a reasonable basis, reflecting management’s reasonable estimates and ju dgments. However, because this information is subjective and subject to numerous risks, it should not be relied on as necessarily indicative of future results. Except as required by applicable securities laws, InPlay undertakes no obligation to update such FOFI. FOFI contained in this document was made as of the date of this document and was provided for the purpose of providing further information about InPlay’s anticipated future business operati ons and strategy. Readers are cautioned that the FOFI contained in this document should not be used for purposes other than for which it is disclosed herein. The forward-looking statements and FOFI contained in this document speak only as of the date hereof and InPlay does not assume any obligation to publicly update or revise any of the included forward -looking statements or FOFI, whether as a result of new in formation, future events or otherwise, except as may be required by applicable securities laws. Risk Factors to FLI Risk factors that could materially impact successful execution and actual results of the Company’s 2025 capital program and associated guidance and estimates include: • risks related to an international trade war, including the risk that the U.S. government imposes additional tariffs on Canadian goods, including crude oil and natural gas, and that such tariffs (and/or the Canadian government’s response to such tariffs) adversely affect the demand and/or market price for the Company’s products and/or otherwise adversely affects the Company; • volatility of petroleum and natural gas prices and inherent difficulty in the accuracy of predictions related thereto; • changes in Federal and Provincial regulations; • the Company’s ability to secure financing for the Board approved 2025 capital program and longer -term capital plans sourced from AFF, bank or other debt instruments, asset sales, equity issuance, infrastructure financing or some combination thereof; and
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9 InPlay Oil Corp. | #2000, 350 – 7th Ave SW | Calgary, AB | T2P 3N9 • those additional risk factors set forth in the Company’s MD&A and most recent Annual Information Form filed on SEDAR+. Key Budget and Underlying Material Assumptions to FLI The key budget and underlying material assumptions used by the Company in the development of its 2025 guidance are as follows: Actuals FY 2024 Updated Guidance FY 2025 Previous Guidance FY 2025(1) WTI US$/bbl $75.72 $65.00 $63.10 NGL Price $/boe $32.99 $34.75 $35.00 AECO $/GJ $1.39 $1.60 $2.30 Foreign Exchange Rate CDN$/US$ 0.73 0.71 0.70 MSW Differential US$/bbl $4.51 $3.25 $3.70 Production Boe/d 8,712 16,900 – 17,100 16,000 – 16,800 Revenue $/boe 48.21 45.25 – 50.25 46.75 – 51.75 Royalties $/boe 6.26 6.00 – 7.10 5.25 – 6.75 Operating Expenses $/boe 15.12 16.00 – 17.00 15.00 – 17.00 Transportation $/boe 0.97 0.80 – 1.00 0.80 – 1.05 Interest $/boe 2.19 2.80 – 3.40 2.80 – 3.50 General and Administrative $/boe 3.06 2.15 – 2.60 2.00 – 2.75 Hedging loss (gain) $/boe (0.86) (0.00) – (1.00) (0.00) – (1.00) Decommissioning Expenditures $ millions $3.4 $4.0 – $4.5 $5.5 – $6.5 Adjusted Funds Flow $ millions $68.5 $119 – $122 $124 – $133 Dividends $ millions $16 $27 $26 - $27 Actuals FY 2024 Updated Guidance FY 2025 Previous Guidance FY 2025(1) Adjusted Funds Flow $ millions $68.5 $119 – $122 $124 – $133 Capital Expenditures $ millions $63 $53 $53 – $60 Free Adjusted Funds Flow $ millions $5.5 $66 – $69 $68 – $76 Shares outstanding, end of year # millions 15.0 28.0 28.0 Assumed share price $/share $10.38 12.50 $6.60 Market capitalization $ millions $156 $350 $185 FAFF Yield % 4% 19% – 21% 35% – 40% Actuals FY 2024 Updated Guidance FY 2025 Previous Guidance FY 2025(1) Revenue $/boe 48.21 45.25 – 50.25 46.75 – 51.75 Royalties $/boe 6.26 6.00 – 7.10 5.25 – 6.75 Operating Expenses $/boe 15.12 16.00 – 17.00 15.00 – 17.00 Transportation $/boe 0.97 0.80 – 1.00 0.80 – 1.05 Operating Netback $/boe 25.86 21.75 – 26.75 23.75 – 28.75 Operating Income Profit Margin 54% 51% 53% (1) As previously released May 8, 2025. (2) InPlay’s EBITDA for this column is based on Q4 2025 annualized figures. • See “Production Breakdown by Product Type” below • Quality and pipeline transmission adjustments may impact realized oil prices in addition to the MSW Differential provided above • Changes in working capital are not assumed to have a material impact between the years presented above. Actuals FY 2024 Updated Guidance FY 2025 Previous Guidance FY 2025(1) Adjusted Funds Flow $ millions $68.5 $143 – $150(2) $146 – $164(4) Interest $/boe 2.19 3.00 – 3.50(2) 3.05 – 3.65(4) EBITDA $ millions $76 $166 – $173(2) $168 – $186(4) Net Debt $ millions $61 $213 – $216 $213 – $221 Net Debt/EBITDA 0.8 1.2 – 1.3 1.1 – 1.3
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10 InPlay Oil Corp. | #2000, 350 – 7th Ave SW | Calgary, AB | T2P 3N9 Production Breakdown by Product Type Disclosure of production on a per boe basis in this document consists of the constituent product types as defined in NI 51-101 and their respective quantities disclosed in the table below: Light and Medium Crude oil (bbls/d) NGLs (boe/d) Conventional Natural gas (Mcf/d) Total (boe/d) Q1 2024 Average Production 3,452 1,487 22,000 8,605 Q2 2024 Average Production 3,671 1,438 21,291 8,657 Q3 2024 Average Production 3,279 1,418 21,052 8,206 2024 Average Production 3,523 1,499 22,139 8,712 Q1 2025 Average Production 3,429 1,572 24,452 9,076 Q2 2025 Average Production 10,328 2,401 46,029 20,401 Q3 2025 Average Production 9,122 2,334 45,081 18,970 2025 Previous Annual Guidance 7,890 2,070 38,640 16,400(1) 2025 Updated Annual Guidance 8,170 2,145 40,110 17,000(2) Notes: 1. This reflects the mid-point of the Company’s previous 2025 production guidance range of 16,000 to 16,800 boe/d. 2. This reflects the mid-point of the Company’s previous 2025 production guidance range of 16,900 to 17,100 boe/d. 3. With respect to forward -looking production guidance, product type breakdown is based upon management's expectations based on reasonable assumptions but are subject to variability based on actual well results. BOE equivalent Barrel of oil equivalents or BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the valu e ratio based on the current price of crude oil as compared to natural gas is significantly different than the energy equivalency of 6:1, utilizing a 6:1 conversion basis may be misleading as an indication of value. Initial Production Rates References in this press release to IP rates, other short-term production rates or initial performance measures relating to new wells are useful in confirming the presence of hydrocarbons; however, such rates are not determinative of the rates at which such wells will commence production and decline thereafter and are not indicative of long -term performance or of ultimate recovery. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production for the Company. Accordingly, the Company cautions that the test results should be considered to be preliminary.