2019 Year-End Financial Results and 2020 Budget, Production and Resource Guidance

International Petroleum Corporation (IPC or the Corporation) (TSX, Nasdaq Stockholm: IPCO) today released its financial and operating results and related management’s discussion and analysis (MD&A) for the year ended December 31, 2019.(1) IPC is also pleased to announce its 2020 capital expenditure budget of USD 149 million and its 2020 production guidance of between 46,000 and 50,000 barrels of oil equivalent (boe) per day (boepd).(2) 2019 year-end proved plus probable (2P) reserves and best estimate contingent resources (unrisked) are respectively 300 million boe (MMboe) and 1,089 MMboe.(2)(3)Business Development Highlights

• In January 2020, IPC announced the proposed light oil acquisition of 2P reserves of 14.0 MMboe and 6.2 MMboe of contingent resources (best estimate, unrisked) as at December 31, 2019(2)(3), for total equity and debt consideration of USD 59 million. The acquisition of Granite Oil Corp. (Granite) will be IPC’s third acquisition in less than three years. Completion of the Granite transaction remains subject to satisfaction of certain conditions and is expected to occur in early March 2020.

2019 Financial and Operational Highlights

• Average net production of approximately 47,200 boepd for the fourth quarter of 2019. • Full year 2019 average net production of approximately 45,800 boepd, in line with Q3 2019 guidance. • Full year 2019 operating costs(4) per boe of USD 12.8, slightly ahead of Q3 2019 guidance. • Capital expenditure for full year 2019 of USD 181 million, USD 4 million below Q3 2019 guidance with USD 3 million phased into 2020. • Successfully delivered a 26 development well program in the Suffield area, Canada. • Extensive Suffield area gas swabbing and well optimization program delivered during 2019. • Onion Lake Thermal facility expansion and upgrades completed in Canada, as well as the addition of the new F-Pad wells. • Third well pair at the Blackrod project, Canada, completed with approximately 1,400 metres of horizontal section; commencing steam injection in early 2020. • Successful delivery of the Vert La Gravelle field Phase I redevelopment project, lifting Q4 2019 production in France by 28 percent relative to Q3 2019. • Successfully delivered the three well infill drilling programme at the Bertam field in Malaysia and identified additional infill potential. • 2P reserves as at December 31, 2019 increased to 300 MMboe, with a 2019 reserves replacement ratio of 89% excluding acquisitions and 173% including acquisitions.(2)(3)(5) • Contingent resources (best estimate, unrisked) increased from 849 MMboe as at December 31, 2018 to 1,089 MMboe as at December 31, 2019.(2)(3)

• Full year 2019 operating cash flow (OCF)(4) generation of USD 308 million, the highest annual OCF since IPC’s inception. • Full year 2019 free cash flow (FCF)(4) generation of USD 89 million. • Net debt(4) reduced from USD 277 million as at December 31, 2018 to USD 231.5 million as at December 31, 2019. • Net debt(4) to EBITDA(4) ratio of less than 0.8 times as at December 31, 2019. • In November 2019, IPC announced a share repurchase program, with the ability to repurchase up to approximately 11.5 million IPC shares over a twelve month period. Repurchased for USD 16.9 million and cancelled approximately 3.9 million IPC shares as at end December 2019 and a further approximately 2.9 million IPC shares were repurchased for USD 11.8 million, of which approximately 2.5 million shares were cancelled, as at end January 2020.

2020 Budget and Production Guidance

• 2020 average net production guidance of 46,000 to 50,000 boepd.(2) • 2020 operating costs guidance at USD 13.7 per boe.(2)(4) • Full year 2020 capital expenditure budget of USD 149 million, including USD 3 million of carry-over costs from 2019 and USD 10 million relating to the assets to be acquired in the Granite transaction.(2)Mike Nicholson, IPC's Chief Executive Officer, commented, "Our focus since launching IPC in April 2017 remains unchanged: seeking to deliver operational excellence, demonstrating financial resilience, maximizing the value of our resource base and targeting growth through acquisition. With financial results delivered at the high end of guidance and the most active quarter of investment across all areas of operations, as well as the announcement of another corporate acquisition and the ongoing execution of IPC’s second share repurchase program, we continue to make excellent progress on all fronts in delivering on that strategy.

2019 Year-End Results

During the fourth quarter of 2019, our assets delivered average daily net production of 47,200 boepd, a four percent increase from Q3 2019. Full year 2019 average production was 45,800 boepd, in line with our Q3 2019 guidance. Record high net production levels above 49,000 boepd were achieved in early December 2019, marginally below the previously guided 50,000 boepd exit rate as the start-up of our A-20 well in Malaysia was moved into mid-January 2020. Our operating costs per boe for the fourth quarter was USD 12.4, resulting in a full year 2019 average operating costs per boe of USD 12.8, marginally below our Q3 2019 guidance.(4) IPC delivered a very strong full year 2019 financial performance generating an operating cash flow of USD 308 million, at the upper end of Q3 2019 guidance and a full year net result of USD 104 million.(4) The Q4 2019 operating cash flow amounted to USD 79 million.(4) Free cash flow generation for the full year 2019 was USD 89 million (excluding the share repurchase program and before payment of the spin-off residual working capital liability to Lundin Petroleum).(4) This robust financial performance allowed IPC to fund its expenditure and share repurchase programs, whilst reducing net debt levels from USD 277 million at the end of 2018 to USD 231.5 million by the end of 2019.(4) In Canada, during Q4 2019, the full year 2019 average net production levels at the Suffield area were two percent higher than 2018 levels demonstrating the positive impact of our ongoing oil drilling and gas optimization programs more than offsetting natural declines. Our N2N enhanced oil recovery (EOR) project and drilling program was completed as scheduled in 2019. In addition, preparatory work continued during Q4 2019 which is expected to allow our single rig drilling program to continue through 2020. At Onion Lake Thermal in Canada, facility optimization work completed earlier in 2019 that allowed for steam injection to commence at F-Pad during Q3 2019 and production ramp up through Q4 2019. Following completion of the ramp up of production, average production rates during December 2019 were just below 12,000 boepd in line with expectation. As we look forward, we plan to add another drilling pad during 2020 to increase production toward facility capacity levels of 14,000 boepd by year-end 2020. In Malaysia, a world class uptime performance on the Bertam FPSO in excess of 99 percent continued during Q4 2019. Fourth quarter 2019 production on the Bertam field was 5,400 bopd, in line with our Q3 2019 guidance and five per cent higher than Q3 2019 production as we started to benefit from production from the three well infill drilling program. Following encouraging results from the 2019 infill drilling program, two additional infill drilling locations have been identified and booked as contingent resources in the A-15/A-20 Bertam field area. Further technical work is planned on these locations during 2020, for potential drilling in 2021. In France, average daily production in Q4 2019 was 28 percent higher than Q3 2019 production, averaging 3,200 boepd. The drilling in Q3 2019 of our first horizontal development well at the Vert La Gravelle field was a major milestone for IPC. Production from the well continues to exceed expectation. With Phase I of the Vert La Gravelle redevelopment now being completed, our focus and attention now turns to the Phase I development of the Villeperdue West field in 2020 with three horizontal production wells planned, as well as assessing the potential for a Phase II development of Vert La Gravelle. As at end December 2019, IPC’s 2P reserves are 300 MMboe compared to 288 MMboe as at December 31, 2018.(2)(3) This includes a reserves replacement ratio in 2019 of 89 percent, excluding the assets to be acquired in the Granite transaction, and 173 percent including the Granite assets.(2)(5) In addition, IPC has increased its best estimate contingent resources (unrisked) as at end December 2019 to 1,089 MMboe, compared to 849 MMboe as at end December 2018.(2)(3) We are confident that we have a solid resource base in place to provide the feedstock to add to reserves in the future. Based on third party reserves reports, the net present value (NPV)(2)(3)(6) of IPC’s 2P reserves as at December 31, 2019 was USD 2,410 million. IPC’s net asset value (NAV)(2)(3)(7) as at December 31, 2019 was USD 2,120 million. IPC’s NAV per share(2)(3)(8) was USD 13.3 as at December 31, 2019, representing an increase of over 7 percent from December 31, 2018.

2020 Budget and Production Guidance

We are pleased to announce our 2020 production guidance is 46,000 to 50,000 boepd.(2) We forecast operating costs for 2020 to be USD 13.7 per boe.(2)(4) We also forecast significant free cash flow generation based on our 2P reserves base of an aggregate of more than USD 500 million to USD 1.3 billion over the coming five years, without taking into account development of our contingent resources or any further potential acquisitions.(2)(3)(4)(9) Our 2020 capital expenditure budget is USD 149 million(2), targeting production growth in all of our countries of operations. The budget includes continued oil drilling and gas optimization activities in the Suffield area, Onion Lake Thermal facilities work and Blackrod project activities in Canada, as well as carry-over drilling expenditures on the Bertam field in Malaysia. In France, we continue with finalising Phase I of the Vert La Gravelle redevelopment project and we plan to commence the Villeperdue West development project. In addition, the budget includes approximately USD 10 million to invest in growing the assets to be acquired in the Granite transaction in Canada.(2) Further details regarding IPC’s 2020 budget and production guidance will be provided at IPC’s Capital Markets Day presentation to be held on February 11, 2020 at 14:00 CET. A copy of the Capital Markets Day presentation will be available on IPC's website at www.international-petroleum.com.” Notes:(1) IPC's financial statements and MD&A for the year ended December 31, 2019 are available on IPC's website at www.international-petroleum.com and under IPC’s profile on SEDAR at www.sedar.com. (2) Includes the reserves and contingent resources as at December 31, 2019 and the forecast 2020 production, operating costs and capital expenditures attributable to the oil and gas assets of Granite, assuming acquisition as of January 1, 2020. Completion of the Granite transaction remains subject to satisfaction of certain conditions and is expected to occur in early March 2020. The acquisition cost of USD 59 million includes USD 29 million in cash and USD 30 million in net debt assumption. See “Forward-Looking Statements” below. (3) See "Disclosure of Oil and Gas Information" below. Further information with respect to IPC’s and Granite’s reserves, contingent resources and estimates of future net revenue, including assumptions relating to the calculation of NPV, are further described in the material change report (MCR) filed on the date of this press release by IPC and available under IPC’s profile on www.sedar.com and on IPC's website at www.international-petroleum.com. 2P reserves as at December 31, 2019 of 300 MMboe includes 286.2 MMboe attributable to IPC’s oil and gas assets and 14.0 MMboe attributable to Granite’s oil and gas assets. Contingent resources (best estimate, unrisked) as at December 31, 2019 of 1,089 MMboe includes 1,082.5 MMboe attributable to IPC’s oil and gas assets and 6.2 MMboe attributable to Granite’s oil and gas assets. (4) Non-IFRS measure, see “Non-IFRS Measures” below and in the MD&A. (5) Reserves replacement ratio is based on 2P reserves of 288 MMboe as at December 31, 2018, production during 2019 of 16.7 MMboe, additions to 2P reserves during 2019 of 14.8 MMboe (or 28.8 MMboe including the 2P reserves attributable to the acquisition of the Granite assets which is expected to be completed in early March 2020) and 2P reserves of 286.2 MMboe (or 300 MMboe including the 2P reserves attributable to the acquisition of the Granite assets which is expected to be completed in early March 2020) as at December 31, 2019. (6) NPV is after tax, discounted at 8% and based upon the forecast prices and other assumptions further described in the MCR. NPV of the 2P reserves as at December 31, 2019 of USD 2,410 million includes USD 2,202.5 million attributable to IPC’s oil and gas assets and USD 207.6 million attributable to Granite’s oil and gas assets. See “Disclosure of Oil and Gas Information” below. (7) NAV is calculated as NPV less net debt as at December 31, 2019. Net debt as at December 31, 2019 includes USD 231.5 million as described above and an additional USD 59 million in respect of the Granite acquisition cost, assuming acquisition as of such date. Completion of the Granite transaction remains subject to satisfaction of certain conditions and is expected to occur in early March 2020. (8) NAV per share is based on the number of IPC common shares outstanding as at December 31, 2019 being 159,790,869. (9) Estimated free cash flow generation based on IPC’s current business plans over the period of 2020 to 2024. Assumptions include average net production of a variance around 50 Mboepd, average Brent oil prices of USD 55 to 75 per boe escalating by 2% per year, average gas prices of CAD 2.50 per thousand cubic feet, and average Brent to Western Canadian Select differentials as estimated by IPC’s independent reserves evaluator and as further described in the MCR. IPC’s current business plans and assumptions, and the business environment, are subject to change. Actual results may differ materially from forward-looking estimates and forecasts. See “Forward-Looking Statements” below.

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