InPlay Oil Corp. Announces Finalization of BDC Term Facility, Fourth Quarter Capital Program and Cardium Asset Acquisition

CALGARY, Alberta, Nov. 02, 2020 (GLOBE NEWSWIRE) -- InPlay Oil Corp. (TSX: IPO) (QTCQX: IPOOF) ("InPlay" or the "Company") is pleased to announce that it has entered into definitive agreements with the Business Development Bank of Canada ("BDC") and our current syndicate of lenders providing a $25 million non-revolving, second lien senior secured four-year term facility (the "BDC Term Facility"). The goal of this facility is to provide liquidity for pre-Covid financially viable companies, such as InPlay, to assist in surviving the demand destruction and following commodity price capitulation caused by the pandemic and allow these companies to capitalize on anticipated future price recoveries. The proceeds of the BDC Term Facility will be used by InPlay for working capital and general corporate purposes. The BDC Term Facility matures on October 30, 2024. In conjunction with closing, BDC and the senior lenders have agreed to fund the full amount of $25 million immediately. The BDC Term Facility provides InPlay with significant additional long-term liquidity at reasonable interest rates to withstand the impacts of the COVID-19 pandemic and allows the Company to pursue development opportunities that are expected to generate long-term, sustainable net asset value per share growth for our shareholders. The Company appreciates the hard work and commitment from our staff and strong support from BDC and our syndicate of lenders, ATB Financial and National Bank of Canada, in enabling us to be the first company to close this financing program and making this partnership possible.

In conjunction with closing the BDC Term Facility, no amendments were made to the available commitments, term or interest rates payable under InPlay's existing senior credit facilities (the “Senior Facilities”). InPlay’s current syndicate of lenders have agreed to maintain the borrowing base available under the Company’s Senior Facilities totaling $65 million through the next scheduled semi-annual borrowing base review scheduled for November 30, 2020.

Strategic Cardium Asset Acquisition

The Company is pleased to announce the recent closing of a strategic Cardium asset acquisition in our Pembina area of operations for a total cost of approximately $1.9 million (net of adjustments), adding the following to our Pembina asset base:

• Current production of approximately 240 boed (63% liquids) with a base decline rate of approximately 10%.
• Proved Developed Producing Reserves (“PDP”) of over 1,000 Mboe (assigned by the seller’s independent external reserve evaluator effective January 1, 2020).
• PDP reserve acquisition metrics of approximately $1.90/BOE.
• All lands are 100% working interest Crown land providing InPlay total control over pace of development.
• Approximately 11 sections (7,040 net acres) of land and a potential drilling inventory of over 30 locations with 23 net tier 1 Extended Reach Horizontal ("ERH") locations identified by InPlay management.
• Production acquisition metrics of approximately $7,900 boe/d.
• Net Operating Income acquisition metrics of approximately 1.0 times based on 2019 operating income.