CALGARY, AB — March 5, 2026 — Leads & Copy — InPlay Oil Corp. (TSX: IPO) (OTCQX: IPOOF) has announced its financial and operating results for the three and twelve months ended December 31, 2025, along with the results of its independent oil and gas reserves evaluation effective December 31, 2025. The Reserve Report was prepared by GLJ Ltd.
InPlay’s audited annual financial statements and notes, and Management’s Discussion and Analysis (MD&A) for the year ended December 31, 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 the website in due course.
According to the company, the 2025 fiscal year marked a transformational chapter, highlighted by the acquisition of Pembina assets in April 2025. InPlay’s long-term strategy is based on disciplined capital allocation, driving sustainable organic growth while pursuing strategic acquisitions.
InPlay’s foundation was further strengthened in 2025 with the addition of Delek Group Ltd. as a strategically aligned 32.7% shareholder. Delek has a history of value creation in the international energy markets with investments in the North Sea (Ithaca Energy plc) and the Mediterranean (NewMed Energy). Delek identified Canada as a stable and attractive jurisdiction with compelling return potential, positioning InPlay as a natural extension of its global energy investment strategy.
Delek’s investment enhances InPlay’s financial strength and strategic flexibility, providing access to additional capital and alternative funding sources to support the Company’s growth strategy. Delek played a role in introducing InPlay to the Israeli capital markets and supporting the successful completion of the Company’s oversubscribed senior unsecured bond offering in February 2026. The offering was completed at an attractive cost of capital of 6.23%, further strengthening InPlay’s balance sheet and liquidity profile.
During 2025, InPlay remained focused on operational execution, disciplined capital allocation and prioritizing FAFF while continuing to return capital to shareholders and pay down debt. Adjusted Funds Flow increased by 67% in 2025, delivering FAFF of $62 million. These results were achieved despite a 14% decline in WTI pricing.
The Company capitalized on its operational excellence to generate strong capital efficiencies during its 2025 capital program. The team delivered some of the strongest-performing Cardium wells in 2025 with payouts averaging approximately seven months. This strong operational performance enabled the company to increase production guidance over the course of the year while simultaneously reducing capital expenditures.
The company’s 2025 reserve results reflect the impact of the acquisition and strong operating results achieved during the year. Proved Developed Producing reserves increased 179%, while a long reserve life index continues to underpin a low decline, high FAFF generating asset base. Despite a year-over-year decrease in the benchmark Edmonton light oil price used in the Reserve Report, the Company increased its Total Proved and Total Proved plus Probable net asset value to $30.16/share and $44.02/share respectively.
Looking forward, InPlay is well positioned to continue to execute key operational priorities, disciplined capital allocation and maximizing FAFF while continuing to return capital to shareholders. As announced on February 24, 2026, InPlay’s Board of Directors approved a 2026 capital budget of $66 – $74 million to drill 12 – 14 net horizontal Cardium wells. This program is forecast to result in annual average production of 18,600 – 19,200 boe/d (60% – 62% light crude oil and NGLs), an 11% increase over 2025, resulting in a FAFF yield of 11% – 15%.
In February, InPlay closed an oversubscribed offering of senior unsecured bonds for total gross proceeds of C$242 million maturing on December 15, 2030 at an interest rate of 6.23%. Following the bond issuance, InPlay repaid and retired its term loan. The Company is now positioned with $190 million of available capacity on its fully undrawn revolving credit facility. Additionally, InPlay successfully mitigated exposure to fluctuations in the CAD/NIS exchange rate through the execution of foreign exchange hedging arrangements that fully cover all projected cash outflows over the next four years.
In 2025, InPlay had one of its strongest drilling campaigns in the Company’s history. In the fourth quarter of 2025, InPlay continued its operational momentum by bringing on production five operated wells. The Company’s 2025 drilling program for the second half of 2025 continues to generate substantial returns for the Company through strong IP rates.
InPlay’s capital program for 2026 is underway with two ERH wells being drilled to date which have recently come on production and are in the early cleanup stage. InPlay has also started drilling operations on a three ERH well-pad which is expected to come on-line at the end of March. Approximately 7 – 9 net horizontal wells are planned for the remainder of the year, with most of the capital spend and production coming on-line from these wells in the second half of 2026.
Financial and Operating Results:
InPlay achieved average annual production of 17,043 boe/d (61% light crude oil and NGLs), a 96% increase from 2024. Improved light oil production to 8,143 bbl/d, a 131% increase from 2024 and a 160% increase Q4 2025 over Q4 2024. Light crude oil weighting improved 20% from 2024.
The company realized operating income of $144.1 million, a 75% increase from 2024, which resulted in an operating income profit margin of 49%. Generated AFF of $114.4 million ($4.68 per weighted average basic share), a 67% increase from 2024 despite a 14% decrease in WTI prices. Fourth quarter AFF totaled $30.7 million ($1.10 per weighted average basic share), a 64% increase from 2024 even as WTI prices declined 16%. Fourth quarter AFF also increased 15% over Q3 2025.
Delivered FAFF of $62 million and distributed $27.1 million in dividends, equating to a 18% FAFF yield and 8.7% dividend yield relative to year-end market capitalization. Since November 2022, total dividends distributed amounted to $69.7 million ($3.69 per share, including dividends declared to date in 2026).
Invested $52 million in development capital which was $1 million below the lower end of our May post-acquisition 2025 capital budget of $53 – $60 million and 17% less than 2024. Due to capital efficiencies, disciplined spending, and well outperformance, capital was 35% lower than our original capital forecast of $80 million on announcement on February 2025 to achieve production guidance.
Repaid $35 million of net debt from closing of the Pembina acquisition on April 7, 2025.
Source: InPlay Oil Corp.
