InPlay Oil Boosts 2025 Production Forecast, Lowers Capital Spending
Calgary-based InPlay Oil Corp. has delivered a stronger-than-expected third quarter for 2025, leading the company to upgrade its annual production guidance. The new target of 16,900-17,100 barrels of oil equivalent per day (boe/d) represents a 4% increase from previous estimates, largely driven by enhanced production from its Pembina assets in Alberta.
The company's third-quarter production averaged 18,970 boe/d, a substantial 131% increase from Q3 2024. This notable growth comes despite challenging commodity prices, attributed to InPlay’s significant capital efficiencies, which saw spending reduced by approximately 20% through cost-effective drilling techniques. During the quarter, InPlay completed six wells in its Pembina operations, reporting strong well performance with some exceeding type curves by 260%. The company projects approximately $53 million in exploration and development costs for the year, at the lower end of its guidance.
This performance aligns with a broader trend of resilience and strategic investment within Calgary's energy sector. The city remains a core operational hub for oil and gas, with Alberta's energy sector seeing record spending in 2024 and forecasts for continued growth in production through 2025 and beyond. Industry groups also anticipate Western Canadian oil and natural gas well drilling activity to reach a 10-year high in 2025, driven by increased export capacity.
InPlay's financial results featured a robust adjusted funds flow of $26.8 million, doubling from the previous year, and the company returned $7.5 million to shareholders via dividends. With oil inventories near five-year lows, the company’s comprehensive hedging strategy is positioned to manage price risks ahead of an anticipated market recovery in 2026. This momentum solidifies InPlay's standing as a key player in the local energy sector, contributing to Calgary’s economic strength through sustainable growth and shareholder returns.
