Mr. Doug Bartole reports

INPLAY OIL CORP. ANNOUNCES SECOND QUARTER 2023 FINANCIAL AND OPERATING RESULTS

InPlay Oil Corp. has released its financial and operating results for the three and six months ended June 30, 2023. InPlay's condensed unaudited interim financial statements and notes, as well as management's discussion and analysis, for the three and six months ended June 30, 2023, will be available at SEDAR+ and its website. Its corporate presentation will soon be available on its website.

Second quarter 2023 financial and operating highlights:

• Realized average quarterly production of 8,474 barrels of oil equivalent per day (57 per cent light crude oil and natural gas liquids) in light of significant production restrictions with shut-ins due to the Alberta wildfires and third party facility restrictions, which also temporarily reduced the company's liquids yield in the quarter;
• Generated strong quarterly adjusted funds flow of $21.8-million (25 cents per basic share), an increase of 2 per cent from the first quarter of 2023, despite a decrease in production;
• Generated free adjusted funds flow of $9.0-million resulting in a 9-per-cent reduction to net debt from March 31, 2023;
• Maintained balance sheet strength with a low net debt to earnings before interest, taxes and depletion ratio of 0.4 on a trailing 12-month basis, down from 0.5 in the second quarter of 2022, providing the financial capability to deliver consistent returns to shareholders with the dividend sustainable through to the end of 2025 in a stress test price environment of $55 (U.S.) per barrel West Texas Intermediate;
• Returned $4.0-million ($8.0-million in the first six months of 2023) directly to shareholders through its monthly base dividend;
• Achieved net income of $4.3-million (five cents per basic share and five cents per diluted share);
• Renewed the company's fully conforming revolving senior credit facility at $110-million.

Outlook and operations update

InPlay was anticipating stronger crude oil pricing in the second half of the year. With this favourable pricing outlook occurring, the company continues to focus on drilling oil-weighted properties, maximizing its main revenue-generating commodity. InPlay began its third quarter drilling program at the beginning of July by drilling three (2.85 net) wells in Willesden Green, which are currently being completed and will soon be on production. Drilling operations recently began on a three-(3.0 net)-well pad in Pembina, offsetting two successful high-oil-weighted wells, drilled in the first quarter, which are exceeding its internal type curves with average IP rates per well of 302, 304 and 282 boe/d (85 per cent to 89 per cent light crude oil and NGLs) over their first 30, 60 and 90 days, respectively. This three-well pad is expected to be on production in the second half of September. Drilling plans for the rest of the year include drilling three (2.6 net) wells in Willesden Green. Construction began on its second significant upgrade and partial replacement of an operated natural gas plant in Willesden Green, which are expected to be completed in the third quarter. This upgrade will allow InPlay to continue to expand its operated natural gas capacity and reduce reliance on third party infrastructure as the company continues to develop its Willesden Green asset. InPlay will continue to prudently allocate its capital resources and will adjust its capital plans considering commodity prices, inflationary cost pressures and other aspects impacting its business.

InPlay's operations and production were impacted in the second quarter of 2023 by the Alberta wildfires, delays in getting new wells on production from extended road bans, and third party processing facility constraints and turnarounds. The third party natural gas facility constraints that started in February are expected to end in the third quarter with the natural declines in production and limited natural-gas-focused drilling from all parties delivering into this non-operated facility. There are, however, other non-operated natural gas plants and pipeline maintenance shut-ins expected in the second half of the year. With these factors, InPlay is updating its 2023 annual average production guidance to 9,100 to 9,500 boe/d (58 per cent to 60 per cent light oil and liquids). At pricing of $80 (U.S.) WTI, which is slightly below current future pricing, for the rest of 2023, InPlay forecasts 2023 AFF of $103-million to $108-million with FAFF of $23-million to $33-million. AFF of $62-million is forecasted to be generated in the second half of 2023 ($124-million on an annualized basis). The company's leverage metrics are forecasted to remain at very low levels, with net debt to EBITDA forecast to be 0.2 times to 0.3 times for 2023 supporting the company's sustainable dividend and continued strategy of delivering returns to shareholders. The company expects its higher-return light oil and liquids weighting to increase throughout the rest of 2023 as a result of drilling high-oil-weighted properties and the resumption of NGLs being stripped from gas production at the previously shut-down NGL facility.

Delivering strong returns to shareholders with the payment of its monthly dividend of 1.5 cents per share, and generating significant FAFF, top-tier production per debt adjusted share growth and low leverage all remain priorities of InPlay. To date, the company has returned $12-million to shareholders through dividends since its inaugural dividend was declared in November, 2022, representing approximately 5 per cent of its current market capitalization while maintaining a strong financial position.

InPlay possesses top-quality assets, supported by a management team dedicated to providing top-tier returns to shareholders. The company is well positioned to continue delivering strong returns to shareholders with its strong balance sheet position, disciplined and adaptable capital allocation, and high-quality economic asset base.

The company would like to thank its staff, contractors and suppliers for their continued dedication and execution, and it thanks its board of directors and its shareholders for their continued guidance and support.

We seek Safe Harbor.