IPC 2020 Year-End Financial Results and 2021 Budget, Production and Resource Guidance

February 9, 2021

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, 2020. IPC is also pleased to announce its 2021 capital expenditure budget of USD 37 million and its 2021 production guidance of between 41,000 and 43,000 barrels of oil equivalent (boe) per day (boepd).⁽¹⁾ 2020 year-end proved plus probable (2P) reserves and best estimate contingent resources (unrisked) are respectively 272 million boe (MMboe) and 1,102 MMboe.⁽¹⁾⁽²⁾

2020 Financial and Operational and 2021 Business Plan Highlights
•	Average net production of approximately 44,900 boepd for the fourth quarter of 2020 (43% heavy crude oil, 18% light and medium crude oil and 39% natural gas)(1).
•	Full year 2020 average net production of approximately 42,100 boepd, in line with Q3 2020 guidance (39% heavy crude oil, 20% light and medium crude oil and 41% natural gas)(1).
•	Full year 2020 operating costs(3) per boe of USD 11.9, in line with Q3 2020 guidance.
•	Capital expenditure for full year 2020 of USD 82 million, marginally above Q3 2020 guidance after the decision to advance work at Onion Lake Thermal, Canada.
•	Completed the acquisition of Granite Oil Corp. (Granite) in Q1 2020, adding the Ferguson light oil asset to IPC’s Canadian business.
•	First IPC Sustainability Report published in Q3 2020.
•	2P reserves as at December 31, 2020 of 272 MMboe, with a reserves life index (RLI) of 18 years.(1)(2)
•	Contingent resources (best estimate, unrisked) as at December 31, 2020 of 1,102 MMboe.(1)(2)
•	2021 average net production guidance of 41,000 to 43,000 boepd.(1)
•	2021 operating costs guidance at USD 14.6 per boe.(3)
•	Full year 2021 capital expenditure budget of USD 37 million, with a focus in 2021 on free cash flow generation and debt reduction.
•	Forecast cumulative free cash flow(3) for 2021 to 2025 of approximately USD 600 million to USD 900 million, generating estimated average annual free cash flow yield over the five year period of between 28% and 42%.(7)