CALGARY, Alberta, Sept. 12, 2022 (GLOBE NEWSWIRE) — InPlay Oil Corp. (TSX: IPO) (OTCQX: IPOOF) (“InPlay” or the “Company”) today announced their participation in Noble Capital Markets’ C-Suite Interview Series, presented by Channelchek.
InPlay Oil (IPOOF)(IPO.V) President & CEO Doug Bartole sat down with Noble Capital Markets Senior Research Analyst Michael Heim for this exclusive interview. Topics covered include:
How has InPlay reacted to recent energy sector strength?
How have drilling costs been affected by inflation and increased production?
Behind the decision to raise their credit facility while paying down debt
The current acquisition landscape
How sustainable are the current oil prices?
Why is InPlay an attractive way to invest in the energy space?
The interview was recorded on August 30, 2022 and is available now on Channelchek.
About InPlay Oil Corp.
InPlay is a junior oil and gas exploration and production company with operations in Alberta focused on light oil production. The company operates long-lived, low-decline properties with drilling development and enhanced oil recovery potential as well as undeveloped lands with exploration possibilities. The common shares of InPlay trade on the Toronto Stock Exchange under the symbol IPO and the OTCQX Exchange under the symbol IPOOF.
About Noble Capital Markets
Noble Capital Markets, Inc. was incorporated in 1984 as a full-service SEC / FINRA registered broker-dealer, dedicated exclusively to serving underfollowed small / microcap companies through investment banking, wealth management, trading & execution, and equity research activities. Over the past 37 years, Noble has raised billions of dollars for these companies and published more than 45,000 equity research reports. www.noblecapitalmarkets.com email: contact@noblecapitalmarkets.com.
About Channelchek Channelchek (.com) is a comprehensive investor-centric portal – featuring more than 6,000 emerging growth companies – that provides advanced market data, independent research, balanced news, video webcasts, exclusive c-suite interviews, and access to virtual road shows. The site is available to the public at every level without cost or obligation. Research on Channelchek is provided by Noble Capital Markets, Inc., an SEC / FINRA registered broker-dealer since 1984. www.channelchek.com email: contact@channelchek.com
For further information please contact:
Doug Bartole President and Chief Executive Officer InPlay Oil Corp. Telephone: (587) 955-0632
The Ethereum Merge Could Kick Off a Transformation in Crypto’s Battered Reputation
Cryptocurrencies might still be a very long way from their highs of 2021, but some of the major ones have staged some decent recoveries in the past couple of months. Notably ether (ETH), the second largest cryptocurrency after bitcoin, is trading at almost $US1,700 (£1,463) at the time of writing, having dropped as low as $US876 in mid-June.
Ether, which was created by Canadian/Russian programmer Vitalik Buterin, is the cryptocurrency used for transactions on Ethereum, the leading platform on which developers can applications using blockchain technology.
Blockchains are online ledgers that run without been controlled by any single company. Much of these applications revolve around smart contracts, which are automated contracts that remove the need for intermediaries such as lawyers and are seen as having huge potential for the future.
One of the main catalysts for ether’s rebound has been the Ethereum merge, a huge project to change the way the underlying blockchain operates. Where transactions on Ethereum are currently validated using an energy-intensive system known as proof-of-work (PoW), in which lots of very powerful computers compete to solve complex mathematical puzzles, from around September 15 it will shift to a new system known as proof of stake (PoS).
PoS basically means that transactions on the blockchain will be validated not by all these computations but by a network of investors whose commitment is demonstrated by the fact that they own at least 32 ether (yours for about $US54,000).
The idea is that this gives them an economic incentive to enhance the security of the network, and are therefore very unlikely to try and sabotage it. Whereas bitcoin transactions all depend on PoW, lots of newer cryptocurrencies use PoS, including Ethereum rivals such as Solana and Cardano.
Going Green
When the Ethereum merge takes place, power consumption on the blockchain will be reduced by 99%. Since it is currently the most used blockchain in terms of transactions, this will save a huge amount of electricity each year, corresponding to Chile’s power consumption.
As a result of the merge, some analysts expect ether to overtake bitcoin as the leading crypto in terms of the total value of all the coins (in crypto circles this is referred to as the “flippening”). Ether is currently worth just over US$204 billion, while bitcoin is worth US$396 billion.
Until now, cryptocurrencies and bitcoin in particular have suffered from a bad reputation. Bitcoin was initially conceived with the egalitarian goal of allowing investors access to a financial system with no need for banks and with money that isn’t controlled by countries. It has been championed for its ability to enable billions of people without bank accounts to transact online, and to facilitate things like microfinance and ultra-cheap cross-border trading.
Yet bitcoin has come to be associated with environmental degradation and criminal activities. The mainstream media has endlessly linked the leading cryptocurrency – and by extension the whole space – with money laundering, online drug dealing, Ponzi schemes and exchange hacking.
Netflix documentaries have further reinforced this negative public image. Recent scandals in the crypto world, such as the fall of Ethereum rival Luna and the bankruptcy of Celsius and other crypto lenders, have not helped either.
One major consequence has been that major financial institutions like investment banks and pension funds have been cautious of ploughing money into this space, despite the leap forward in technology that blockchains represent.
But if the most widely adopted crypto platform successfully shifts to PoW in the coming days, many believe that this will overcome the biggest institutional objection and see much more money flowing into the space (there are already early signs, such as Fidelity’s new crypto fund for retail investors). This is likely to accelerate the global regulatory framework that would minimise undesirable activities.
By closing down the environmental objections to crypto, other advantages to ether are likely to come to the fore. The merge will offer a return to investors in the form of rewards in exchange for locking up their money for a period of time (“staking”).
Although you need to stake 32 ether to become one of the network’s validators, numerous companies have set up systems to enable smaller investors to pool their money so that they can participate. For example, Binance, the world’s largest crypto exchange, offers investors 6% annual percentage yield for pooled staking on ether.
Staking will therefore create a win-win situation with guaranteed returns and a very liquid system that makes it easy for people to move their money in and out of ether. This will further enhance the appeal of ether and PoS cryptos in general.
This could help to accentuate other positives around crypto, another of which is humanitarian donations. When Russia invaded Ukraine, for instance, the Ukrainian government called for donations in bitcoin and ether to support its efforts against invaders. This quickly attracted substantial amounts of money.
Tonga was similarly successful with a campaign after its volcanic eruption earlier this year. By being able to cross borders easily and cheaply, cryptocurrencies are the ideal vehicle for international donations.
Lingering Uncertainties
All that said, it is uncertain how the Ethereum blockchain will function after the merge in terms of transaction speeds and costs. One major problem with Ethereum in the past has been that transactions have been ludicrously expensive, sometimes running to thousands of US dollars at peak times in 2021.
The developers of the Ethereum Foundation do not expect the merge to make a big difference in these respects (currently “gas” fees are averaging between $US1 and $US4 per transaction depending on which platform you are using). Much more important is likely to be another shift in ethereum’s journey to “Ethereum 2.0” known as sharding, which is due to happen in 2023.
We will also have to wait and see how smooth the merge is. Synchronisation and update bugs could see problems such as validators disconnected from the blockchain. Negative stories like these could see investors staying away for fear of instability. But on the whole, while the merge will not be a miraculous event, it could help improve the image of cryptocurrencies and attract institutional and retail investors. At a time when sustainable investing is increasingly high priority, the ether merge and its attractive returns have the potential to put ether at the top of the list.
This article was republished with permission from The Conversation, a news site dedicated to sharing ideas from academic experts. It represents the research-based findings and thoughts of Jean-Philippe Serbera, Senior Lecturer in Banking And Financial Markets, Sheffield Hallam University.
CALGARY, AB, Sept. 8, 2022 /CNW/ – Alvopetro Energy Ltd. (TSXV: ALV); (OTCQX: ALVOF) announces a discovery at our 49.1% Caburé Unit C well, record August sales volumes and an operational update.
7-CARN-2D-BA Well (“Unit-C Well”)
The Unit-C well at the Caburé Unit (49.1% Alvopetro) was spud in July and drilled to a total measured depth (“MD”) of 2,096 metres. Based on Alvopetro’s analysis of open hole logs and fluid samples confirming hydrocarbons, the well has potential net pay in multiple formations using a 6% porosity cut-off, 50% Vshale cut-off and 50% water saturation cut-off. The well was drilled with development objectives in the Pojuca and Marfim sands that are producing from, or tested hydrocarbons in, the offsetting Unit well (IMET-10). The well was also drilled with exploratory objectives in the deeper Maracangalha sands that are producing on the eastern side of the bounding fault. The well encountered a total of 52.6 metres of potential net hydrocarbon pay at an average 37.2% water saturation and average porosity of 16.8% in multiple formations. Fluid samples were also collected using a formation testing tool with natural gas being recovered from a sand in the Maracangalha Formation at 1,443.5 metres total vertical depth and oil from a deeper sand at 1,633.6 metres total vertical depth. Potential net pay is summarized, by formation, as follows:
Formation
Objective
Net Pay (metres)
Water Saturation (%)
Porosity (%)
Pojuca
Development
19.9
31.9
24.6
Marfim
Development
3.9
30.4
12.1
Maracangalha
Exploration
28.8
41.7
12.1
Total
52.6
37.2
16.8
August 2022 Sales Volumes
Our August daily sales volumes averaged 2,727 boepd, including natural gas sales of 15.6 MMcfpd, and associated natural gas liquids sales from condensate of 120 bopd, based on field estimates. Our August sales volumes are a record for Alvopetro, 8% above July sales volumes of 2,514 boepd and 16% above average volumes in the second quarter of 2022 of 2,359 boepd.
Operational Update
On August 26th, we spud our 182-C2 well on Block 182 (100% Alvopetro). The 182-C2 well is a follow-up well to our 182-C1 well drilled earlier this year and targets the Agua Grande and Sergi Formations further east from the bounding fault encountered during drilling of the 182-C1 well.
On our Murucututu project, the ANP inspection of our fiscal meter station at our 183-1 location was completed last week and, subject to receipt of all finalized reports, we expect to commence production from our 183-1 well this month.
Corporate Presentation
Alvopetro’s updated corporate presentation is available on our website at:
Alvopetro Energy Ltd.’svision is to become a leading independent upstream and midstream operator in Brazil. Our strategy is to unlock the on-shore natural gas potential in the state of Bahia in Brazil, building off the development of our Caburé natural gas field and our strategic midstream infrastructure.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
All amounts contained in this new release are in United States dollars, unless otherwise stated and all tabular amounts are in thousands of United States dollars, except as otherwise noted.
Abbreviations:
boepd
=
barrels of oil equivalent (“boe”) per day
bopd
=
barrels of oil and/or natural gas liquids (condensate) per day
MMcf
=
million cubic feet
MMcfpd
=
million cubic feet per day
BOE Disclosure. The term barrels of oil equivalent (“boe”) may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet per barrel (6Mcf/bbl) of natural gas to barrels of oil equivalence is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. All boe conversions in this news release are derived from converting gas to oil in the ratio mix of six thousand cubic feet of gas to one barrel of oil.
Testing and Well Results. Data obtained from the Unit C well identified in this press release, including hydrocarbon shows, open-hole logging, net pay and porosities, should be considered to be preliminary until testing, detailed analysis and interpretation has been completed. Hydrocarbon shows can be seen during the drilling of a well in numerous circumstances and do not necessarily indicate a commercial discovery or the presence of commercial hydrocarbons in a well. There is no representation by Alvopetro that the data relating to the Unit C well contained in this press release is necessarily indicative of long-term performance or ultimate recovery. The reader is cautioned not to unduly rely on such data as such data may not be indicative of future performance of the well or of expected production or operational results for Alvopetro in the future.
Cautionary statements regarding the filing of a Notice of Discovery. The unit operator has submitted a Notice of Discovery of Hydrocarbons to the Agência Nacional do Petróleo, Gás Natural e Biocombustíveis (the “ANP”) with respect to the Unit C well. All operators in Brazil are required to inform the ANP, through the filing of a Notice of Discovery, of potential hydrocarbon discoveries. A Notice of Discovery is required to be filed with the ANP based on hydrocarbon indications in cuttings, mud logging or by gas detector, in combination with wire-line logging. Based on the results of open-hole logs, a Notice of Discovery has been filed for the Unit C well. These routine notifications to the ANP are not necessarily indicative of commercial hydrocarbons, potential production, recovery or reserves.
Forward-Looking Statements and Cautionary Language. This news release contains “forward-looking information” within the meaning of applicable securities laws. The use of any of the words “will”, “expect”, “intend” and other similar words or expressions are intended to identify forward-looking information. Forward‐looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to vary significantly from the expectations discussed in the forward-looking statements. These forward-looking statements reflect current assumptions and expectations regarding future events. Accordingly, when relying on forward-looking statements to make decisions, Alvopetro cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties. More particularly and without limitation, this news release contains forward-looking information concerning potential hydrocarbon pay in the Unit C well, exploration and development prospects of Alvopetro and the expected timing of certain of Alvopetro’s testing and operational activities. The forward‐looking statements are based on certain key expectations and assumptions made by Alvopetro, including but not limited to expectations and assumptions concerning results of the Unit C well, equipment availability, the timing of regulatory licenses and approvals, the success of future drilling, completion, testing, recompletion and development activities, the outlook for commodity markets and ability to access capital markets, the impact of the COVID-19 pandemic, the performance of producing wells and reservoirs, well development and operating performance, foreign exchange rates, general economic and business conditions, weather and access to drilling locations, the availability and cost of labour and services, environmental regulation, including regulation relating to hydraulic fracturing and stimulation, the ability to monetize hydrocarbons discovered, expectations regarding Alvopetro’s working interest and the outcome of any redeterminations, the regulatory and legal environment and other risks associated with oil and gas operations. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. Although Alvopetro believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because Alvopetro can give no assurance that it will prove to be correct. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on factors that could affect the operations or financial results of Alvopetro are included in our annual information form which may be accessed on Alvopetro’s SEDAR profile at www.sedar.com. The forward-looking information contained in this news release is made as of the date hereof and Alvopetro undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
How Long Can the Imbalance of Energy Production and Demand Continue?
During the first 19 months after taking office, the Biden administration has leased fewer acres for oil and gas drilling than any president’s first 19 months since Harry Truman (1945-46). Not long ago, Candidate Biden promised to stop drilling on federal lands to help force a transition to cleaner energy. This promise has mostly been kept. But it is getting more difficult for the 46th POTUS. Demand pressures and reduced output caused oil prices to already be off its pandemic lows when Russia’s invasion of Ukraine gave way to a semi-embargo on Russian goods, which included oil and gas.
President Biden’s Interior Department leased 126,228 acres for drilling through Aug. 20, during his first 19 months in office. Analysts at the Wall Street Journal uncovered that no president since Nixon in 1969-70 leased out fewer than 4.4 million acres at this stage in their occupation of the White House.
Truman was the most recent to lease out fewer acres, 65,658. This was just after WWII at a time when offshore drilling was just beginning and the federal government didn’t yet control the deep-water leases that are the largest portion of the federal oil-and-gas program today.
The leasing program had tapered during the past decade as fracking shale became preferable to drilling offshore or on federal land. Biden’s use of land and deep-sea leases represents a decline of 97% as compared to the same time period of Trump’s stewardship which had declined 39% compared to his predecessor.
A record high number of drilling permits for existing leases were filed last year, according to The Interior Department . Department spokeswoman Melissa Schwartz told the Wall Street Journal that industry trends have driven most U.S. production to private and state-owned lands, and that of the roughly 35 million acres now leased from the federal government, about 60% aren’t actively producing.
As for offshore leases, the Biden administration has yet to complete a sale. It did hold one, on Nov. 17, offering 80 million acres in the Gulf of Mexico in a sale originally proposed by the Trump administration that would have been the largest offshore sale in U.S. history. It sold 1.7 million acres, but a federal judge invalidated the sale in January, ruling that the administration failed to do a proper environmental analysis.
One can either appreciate the resolve of the current administration in its effort to foster fewer emmited pollutants, or fault him for his role in curbing energy production and its contribution to higher prices and less energy independence. If the measurement had been made as of the first 17 months of his presidency, the acreage number would be zero, there were no onshore lease sales. The government then held five June 29-30.
Leases for oil and natural gas drilling is the beginning of the petroleum product supply chain. But, while there is no shortage of federal land, an escalation of lease sales now, or under any successor’s policies, would take years to build and deliver its first barrel.
The increase in gasoline and oil prices has caused the president to take steps to boost oil supplies. In late March the President said he’d be releasing as much as 180 million gallons from the strategic oil reserves over the following 180 days. This was unprecedented in its magnitude and a response to the doubling and tripling of gasoline prices.
Energy independence has been the goal of many of Biden’s predecessors. We live at a time when the call has been to prioritize policy that encourages transitioning to non-fossil fuel. This naturally has caused investors in resources like lithium and uranium to see price increases. Large oil price increases have also come from lower growth of petroleum supplies. Part of the relief valve the administration used, is tapping into the finite supply of strategic oil reserves. The current pace of using this resource is unsustainable.
This could indicate that energy investors, in fossil fuels and alternatives may see strong markets with demand outstripping supply going forward for some time.
Will Drivers Continue to be Dogged by High Gas Prices as US Strategic Oil Reserve is Replenished?
The last time the US Strategic Oil Reserves was this low was January 1985. The US population was then 238 million, The Cosby Show was the top-rated on TV, the threat of the AIDS virus was just beginning to be understood, and a newly appointed NIH Director named Anthony Fauci had just been promoted. In 37 years, some things have changed, and some things have not. One that has not is the need for reliable energy.
The Reserves reached its peak in April 2011 with 726.5 million barrels; today we sit with 453.1 million. Will it take 37 years to replenish the more than 200 million barrels, 160 million that have been siphoned off since March of this year?
The barrels that are being used in 2022, were ordered released by the White House to offset domestic loss of production, pipeline distribution, and less supply compounded by global shortages resulting from a partial embargo against Russia. The order is intended to work to lower gas prices today and help reduce the impact oil prices are having on unacceptably high inflation.
President Biden said in March that the US would release one million barrels of oil a day for six months as petroleum products spiked following the start of the Russian/Ukrainian war. The White House then said, in late July, the US would release another 20 million barrels.
To some degree, it worked as intended. There has been a fall in the price at the gas pumps over the past two months. Much of this has been supply related helped by the reserve releases, and to a lesser extend, demand has also slowed from receding economic activity. WTI crude, the US benchmark price, has dropped around 24%.
That decline has brought US gasoline prices down from above $5 a gallon in June to $3.89 on Tuesday, August 17. Globally, other countries are tapping into their own strategic reserves as well.
What Happens When we Refill It?
The US consumed about 20 million barrels of oil a day on average in 2021, according to the EIA. During the same year, it produced 11 million barrels a day. The Biden administration is proposing to refill the stockpiles under a plan that is likely to see it order 60 million barrels this fall for delivery at an unspecified time in the future. That leaves at least another 100 million barrels to bring the country back to where we were in March 2022 – over two hundred more to bring us back to the peak. It took 37 years last time for the country to stockplile the same amount.
The current infrastructure is not supporting additional oil output, or companies would be pumping now. On July 1, President Biden made public a five-year proposal for offshore oil and gas development in areas of existing production and said the final plan might have anywhere from zero to 11 lease sales.
The range of proposed options were, between two auctions a year and none at all. The plan seemed conflicted with a desire to balance the administration’s efforts to reduce the use of fossil fuels and its calls to increase needed oil and gas.
Energy Demand Moving Forward
Does restocking the Reserves point toward high petroleum demand for a much longer time period than ever expected? Does it also create opportunities for producers of biofuels, for example GEVO?
The current fuel issues are not going to disappear overnight. Borrowing from the future with an intent, and now a plan to pay it back, will require more production than before. Companies that produce are not inclined to make big investments in building out a platform when the political climate is one of wanting to shut production down as soon as possible.
The cost of reducing energy output and then borrowing from reserves, especially when an unexpected embargo is placed on a major supplier, could keep the price of all energy elevated for a much longer time than, the end of a war, of installation of coastal wind farms.
