Mr. Doug Bartole reports

INPLAY OIL CORP. ANNOUNCES 2018 CAPITAL BUDGET OF $38 MILLION GENERATING LIGHT OIL PRODUCTION GROWTH OF OVER 23%

InPlay Oil Corp.'s board of directors has approved a $38-million exploration and development capital program for 2018, which is forecasted to deliver average light oil production per-share growth of over 23 per cent in 2018 over 2017. This organic production increase is expected to deliver top-quartile light oil production per-share growth in the industry.

2018 budget overview

InPlay's 2018 capital program is focused on drilling approximately 10 to 11 net horizontal Cardium wells with a combination of extended-reach and one-mile wells, with over 80 per cent of them anticipated to be in the company's Willesden Green bioturbated play. This program is based on the company's recent, very successful Willesden Green horizontal program where it had exceptional results from five wells brought on production in the second half of 2017. These wells have been yielding higher light oil weightings than initially expected as InPlay increased its current Willesden Green liquid rate to 68 per cent from 45 per cent one year ago after acquiring the property. This year's program continues to focus on these types of wells in order to generate the best results and given the current disconnect between oil and gas strip pricing. These wells pay out within one year or less on current commodity prices.

The development drilling, completion and equipping program is expected to comprise approximately 81 per cent of total capital expenditures planned for 2018, with an additional approximately 13 per cent allocated to the very exciting East basin Duvernay light oil play. This program complements InPlay's core technical strengths where management has drilled and performed multifrac completions on over 220 combined Cardium horizontal wells.

Based on the planned program, InPlay is forecasting an annual average production rate of 4,400 to 4,500 barrels of oil equivalent per day (72 per cent oil and liquids) with exit production of 4,800 to 4,900 barrels of oil equivalent per day (73 per cent oil and liquids). The company does not expect to see growth in natural gas and associated liquids in 2018 over 2017. This highly focused program is anticipated to increase InPlay's average corporate light oil production percentage from 59 per cent (total liquids 67 per cent) in 2017 to 64 per cent (total liquids 72 per cent) in 2018.

This budget is based on a WTI (West Texas Intermediate) price of $60 (U.S.) per barrel, foreign exchange of 80 Canadian cents to $1 (U.S.) and AECO price of $1.75 per thousand cubic feet. The 2018 fourth quarter debt to fourth quarter annualized adjusted funds flow from operations is estimated at 1.3 times. This program provides plenty of flexibility and provides results that are expected to yield top-quartile light oil production growth within the company's oil-weighted peers. There will be ample room to potentially expand the program in the second half of the year if the current oil commodity strip price, which is the highest in two years, prevails.

Operations update

The company had a very successful year in 2017. In the fourth quarter, a single pad with three one-mile Willesden Green bioturbated Cardium horizontal wells was drilled, completed and all put on production at the very end of November, which was approximately two weeks later than planned due to some delays with services. In December, these three wells experienced typical initial start-up issues, coupled with extreme cold weather and third party pipeline curtailments, resulting in run time of approximately 80 per cent for the month yet still demonstrating excellent results (presented in the attached table) and allowing the company to easily meet its year-end exit guidance of 4,300 to 4,500 barrels of oil equivalent per day.

Well No.    Average daily rate*   Calendar daily rate**    Liquids 
                        (boepd)                (boepd)          (%)

1                          498                    433           88         
2                          357                    245           87         
3                          383                    328           93 

* Average day rate is equal to monthly volume divided by hours 
produced in the month and then multiplied by 24.
** Calendar day rate is equal to monthly volume divided by 
days in month.

InPlay commenced its 2018 program late in 2017 and has drilled one net two-mile Willesden Green horizontal well, which is expected to be on production in February. The company anticipates in total three to four net Willesden Green Cardium horizontal wells to be drilled and brought on production in the first quarter of 2018, with minimal drilling in the second quarter until after the spring breakup period. Also planned is completion of the company's first East basin Duvernay shale horizontal well, which is expected to occur after spring breakup and brought on production early in the summer.

Outlook

The InPlay team has executed its strategy and expanded on its premier asset base in two of the most exciting light oil plays in the Canadian basin, being the bioturbated Cardium and the East basin Duvernay shale play. These plays are highlighted by large oil in place, low base declines, long reserve life and a large inventory of high-rate-of-return drilling locations. The company is extremely pleased with the results achieved to date, which are consistent with its core strategy focused on being one of the most capital-efficient light-oil-weighted companies. This strategy, coupled with the company's low base decline of approximately 22 per cent, will allow InPlay to provide consistent top-tier production per-share growth.

The InPlay management team and board of directors are motivated and committed to provide consistent, predictable growth while maintaining a strong balance sheet with financial flexibility. The company looks forward to providing its shareholders with a further update in March with the release of year-end 2017 reserves and financial results.

About InPlay Oil Corp.

InPlay, based in Calgary, Alta., has been engaged in the business of exploring for, developing and producing oil and natural gas, as well as acquiring oil and natural gas properties in Western Canada since it commenced operations as a private company in June, 2013. Since commencing operations, InPlay has concentrated on exploration and development drilling of light oil prospects in the province of Alberta in a very focused area of central and west-central Alberta.

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