IPC 2022 Year-End Financial Results and 2023 Budget and Production Guidance

February 7, 2023

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, 2022. IPC is also pleased to announce its 2023 budget and plans including:

  • sanction of the Blackrod Phase 1 development
  • proposed acquisition of Cor4 Oil Corp. (Cor4) in Canada
  • intention to continue the normal course issuer bid / share repurchase program (NCIB) in 2023

IPC’s 2023 capital expenditure budget is MUSD 365 and its 2023 production guidance is between 48,000 and 50,000 barrels of oil equivalent (boe) per day (boepd).(1) 2022 year-end proved plus probable (2P) reserves increased by 80% to 487 million boe (MMboe) and best estimate contingent resources (unrisked) are 1,162 MMboe.(1,2)

Mike Nicholson, IPC’s Chief Executive Officer, comments: “We are very pleased to announce that IPC achieved record results in 2022. Annual average net production was 48,600 boepd for the year, with very strong operational and ESG performance across all our areas of operation. We produced record annual free cash flows from our business in excess of MUSD 430, ending the year in a net cash position of MUSD 175. With significant gross cash resources of MUSD 487, we are well positioned to deliver on our three strategic pillars of Stakeholder Returns, M&A and Contingent Resource Development that drives value creation for our shareholders.(3)

On Stakeholder Returns, from December 2021 through end 2022, we acquired and cancelled 12% of our common shares outstanding. In 2023, we intend to continue our ongoing NCIB, to acquire and cancel 7% of our common shares outstanding by December 2023.

On M&A, we announced yesterday the complementary acquisition of almost 16 MMboe of 2P reserves adjacent to our Suffield property in Alberta, Canada, through the proposed acquisition of Cor4, a private company. This transaction is forecast to add in excess of 4,000 boepd to our Suffield area production in 2023, for a consideration of MUSD 62.(1,2)

On Contingent Resource Development, we are also pleased to announce that we have taken the decision to advance development of Phase 1 of the Blackrod project, Canada, which has successfully been on pilot production since 2011. Phase 1 of the Blackrod project matures 218 MMboe into 2P reserves, with forecast first oil in late 2026 and production planned to increase to 30,000 boepd by 2028. The project adds MUSD 807 to IPC’s 2P reserves net present value (NPV) as at January 1, 2023. (1,2,4)

It is with great pride that the IPC team is able to deliver on all three of our strategic capital allocation pillars in parallel as a result of our solid asset base, our operational excellence and our financial strength.”

2022 Business Highlights
• Decision taken to advance the development of Phase 1 of the Blackrod project in Canada following the completion of front end engineering design (FEED) studies, maturing 218 MMboe of 2P reserves. (1,2)
• In Q3 2022, published IPC’s third annual Sustainability Report, aligned with the Global Reporting Initiative (GRI) standards and the Task Force on Climate-Related Financial Disclosures (TCFD).
• Expanding our stated commitment to reduce our net emissions intensity to 20 kg CO2/boe by 2025, now expecting to remain at those levels through end 2027.