CALGARY, AB, Aug. 21, 2026 /CNW/ -- InPlay Oil Corp. (TSX: IPO) (TASE: IPO) (OTCQX: IPOOF) ("InPlay" or the "Company") is pleased to announce the closing of its previously announced acquisition of a private oil and gas producer for cash consideration of $54.25 million, prior to closing adjustments (the "Acquisition"). Further details regarding the Acquisition can be found in InPlay's press release dated August 5, 2026.

The Acquisition adds approximately 1,400 boe/d(1) (85% light oil and NGLs), bringing InPlay's total Belly River production to approximately 2,000 boe/d and total corporate production to approximately 20,100 boe/d(1) (63% light oil and NGLs). InPlay has identified 50 drilling locations on the acquired assets including over 10 years of Tier 1 drilling inventory(2) . The Acquisition was completed at 2.0x net operating income(3)(4) and delivered annualized per-share accretion of 18% to both Adjusted Funds Flow(5) and Free Adjusted Funds Flow ("FAFF")(3) , 12% to oil production per share, and 9% to funds flow per barrel netback.

ADVISORS

ATB Capital Markets acted as financial advisors to InPlay with respect to the Acquisition. Burnet, Duckworth & Palmer LLP acted as legal counsel to InPlay with respect to the Acquisition.

About InPlay Oil Corp.

InPlay Oil Corp. is a growth-oriented, sustainable oil and gas producer focused on long-term value creation for its shareholders. The Company's operations are centered in the Western Canadian Sedimentary Basin, where InPlay holds a diverse portfolio of oil and natural gas assets. InPlay is committed to delivering strong per-share growth, maintaining a disciplined approach to capital investment, and providing consistent returns to shareholders.

For further information please contact:

 
Doug Bartole                             Kevin Leonard 
President and Chief Executive Officer    Vice President, Business & Corporate 
InPlay Oil Corp.                         Development 
Telephone: (587) 955-0632                InPlay Oil Corp. 
                                         Telephone: (587) 955-0635 
 
 
Notes: 
1.  See "Reader Advisories -- Production Breakdown by 
     Product Type" contained within this press release. 
2.  See "Reader Advisories -- Drilling Locations" for 
     additional details. 
3.  Non-GAAP financial measure or ratio. See "Reader Advisories 
     -- Non-GAAP and Other Financial Measures" for additional 
     details. 
4.  The acquired assets' sustaining net operating income 
     of $28 million multiplies 1,500 boe/d of sustaining 
     production by the operating netback of $51.75/boe. 
     Operating Netback estimate of $51.75/boe assumes current 
     guidance commodity price assumptions of US$80.50 WTI, 
     US$1.15 MSW differential, $1.75 AECO, 0.73 FX, in 
     addition to $18.50/boe operating and transportation 
     costs, and $16.90/boe royalties. 
5.  Capital management measure. See "Non-GAAP and Other 
     Financial Measures" for additional details. 
 

Reader Advisories

Non-GAAP and Other Financial Measures

Throughout this document and other materials disclosed by the Company, InPlay uses certain measures to analyze financial performance, financial position and cash flow. These non-GAAP and other financial measures do not have any standardized meaning prescribed under GAAP and therefore may not be comparable to similar measures presented by other entities. The non-GAAP and other financial measures should not be considered alternatives to, or more meaningful than, financial measures that are determined in accordance with GAAP as indicators of the Company's performance. Management believes that the presentation of these non-GAAP and other financial measures provides useful information to shareholders and investors in understanding and evaluating the Company's ongoing operating performance, and the measures provide increased transparency and the ability to better analyze InPlay's business performance against prior periods on a comparable basis.

Non-GAAP Financial Measures and Ratios

Included in this document are references to the terms "free adjusted funds flow", "operating income" and "operating netback per boe". Management believes these measures and ratios are helpful supplementary measures of financial and operating performance and provide users with similar, but potentially not comparable, information that is commonly used by other oil and natural gas companies. These terms do not have any standardized meaning prescribed by GAAP and should not be considered an alternative to, or more meaningful than "profit before taxes", "profit and comprehensive income", "adjusted funds flow", "capital expenditures", "net debt" or assets and liabilities as determined in accordance with GAAP as a measure of the Company's performance and financial position.

Free Adjusted Funds Flow

Management considers FAFF an important measure to identify the Company's ability to improve its financial condition through debt repayment and its ability to provide returns to shareholders. FAFF should not be considered as an alternative to or more meaningful than AFF as determined in accordance with GAAP as an indicator of the Company's performance. FAFF is calculated by the Company as AFF less exploration and development capital expenditures and property dispositions (acquisitions) and is a measure of the cashflow remaining after capital expenditures before corporate acquisitions that can be used for additional capital activity, corporate acquisitions, repayment of debt or decommissioning expenditures or potentially return of capital to shareholders.

Operating Income/Operating Netback per boe/Operating Income Multiple

InPlay uses "operating income", "operating netback per boe" and "operating income profit margin" as key performance indicators. Operating income is calculated by the Company as oil and natural gas sales less royalties, operating expenses and transportation expenses and is a measure of the profitability of operations before administrative, share-based compensation, financing and other non-cash items. Management considers operating income an important measure to evaluate its operational performance as it demonstrates its field level profitability. Operating income should not be considered as an alternative to or more meaningful than net income as determined in accordance with GAAP as an indicator of the Company's performance. Operating netback per boe is calculated by the Company as operating income divided by average production for the respective period. Management considers operating netback per boe an important measure to evaluate its operational performance as it demonstrates its field level profitability per unit of production. Operating income multiple is calculated by the Company as the Acquisition consideration divided by operating income for the acquired assets for the relevant period. Management considers operating income multiple a key performance indicator as it is a key metric used to evaluate the Acquisition in comparison to other transactions. Refer below for a calculation of the operating income multiple in relation to the Acquisition.

 
                                                        2026E 
Net Consideration (before adjustments)   $ millions     $54.25 
Operating Income                         $ millions      $26.5 
Operating Income Multiple                                 2.0x 
 

Capital Management Measures

Adjusted Funds Flow

Management considers adjusted funds flow to be an important measure of InPlay's ability to generate the funds necessary to finance capital expenditures. Adjusted funds flow is a GAAP measure and is disclosed in the notes to the Company's financial statements for the three and six months ended June 30, 2026. All references to adjusted funds flow throughout this document are calculated as funds flow adjusting for foreign exchange loss, transaction and integration costs and decommissioning expenditures. Foreign exchange loss is primarily an unrealized movement on the Company's NIS denominated Bonds due to movements in the CAD/NIS exchange rate. In addition, InPlay has effectively mitigated its exposure to fluctuations in the CAD to NIS exchange rate on the NIS denominated Bond by entering into NIS/CAD foreign exchange hedges with notional amounts and terms that align with the future cash outflow requirements of the Bonds. Therefore, at the end of the life of the Bonds, the FX impact on the Company will be insignificant. Transaction and integration costs are non-recurring costs for the purposes of an acquisition, making the exclusion of these items relevant in Management's view to the reader in the evaluation of InPlay's operating performance. Decommissioning expenditures are adjusted from funds flow as they are incurred on a discretionary and irregular basis and are primarily incurred on previous operating assets. The Company also presents adjusted funds flow per share whereby per share amounts are calculated using weighted average shares outstanding consistent with the calculation of profit per common share.

Production Breakdown by Product Type: