International Petroleum Corporation Announces 2023 Year-End Financial and Operational Results and 2024 Budget, Reserves and Guidance

February 6, 2024

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 three months and year ended December 31, 2023. IPC is also pleased to announce its 2024 budget, including that IPC continues to progress the development of the Blackrod Phase 1 project in Canada in line with schedule and budget. IPC also confirms its intention to complete the previously announced normal course issuer bid (NCIB) to acquire a further 6.5 million common shares up to December 2024, in addition to the 1.8 million common shares already purchased for cancellation under the NCIB in December 2023 and January 2024. IPC’s 2024 capital and decommissioning expenditure budget is USD 437 million and its 2024 average daily production guidance is between 46,000 and 48,000 barrels of oil equivalent (boe) per day (boepd).(1) 2023 year-end proved plus probable (2P) reserves are 468 million boe (MMboe) and best estimate contingent resources (unrisked) are 1,145 MMboe.(1,2)

William Lundin, IPC’s President and Chief Executive Officer, comments: “We are very pleased to announce that IPC achieved record operational results in 2023. Our average net production was 51,100 boepd for the full year, with very strong operational and ESG performance across all our areas of operation. We exited 2023 at approximately 49,500 boepd. In a significant investment year for our Blackrod Phase 1 development project, we still produced positive annual free cash flows from our business. We also returned USD 95 million to shareholders through share buybacks and closed the Cor4 acquisition for a consideration of USD 62 million, ending the year in a net cash position of USD 58 million. With significant gross cash resources of USD 517 million at 2023 year-end, we continue to be well positioned to deliver on our three strategic pillars of Organic Growth, Stakeholder returns, and M&A that drive value creation for our stakeholders.(1,3)

On Organic Growth, we are very pleased with the progress of the development of Phase 1 of the Blackrod project, Canada, which remains in line with schedule and budget. Phase 1 of the Blackrod project continues to forecast first oil in late 2026, with peak production planned to increase to 30,000 bopd by 2028. This transformational growth project is forecast to push IPC production levels on average from approximately 55,000 boepd between 2024 to 2028, to approximately 65,000 boepd between 2029 to 2033.(1,2)

On Stakeholder Returns, we completed the 2022/2023 NCIB program, purchasing and cancelling 9.3 million IPC common shares over the period of December 5, 2022 to December 4, 2023, representing approximately 6.8% of the common shares outstanding at the start of that program. We immediately recommenced purchasing under the renewed 2023/2024 NCIB, purchasing for cancellation 1.2 million common shares during December 2023 and over 600,000 common shares during January 2024. We confirm our intention to complete the 2023/2024 NCIB by purchasing up to a further 6.5 million common shares by early December 2024, representing a 6.5% reduction in the number of shares common outstanding at the beginning of the 2023/2024 NCIB.

On M&A, we successfully integrated the assets acquired in March 2023 through the acquisition of Cor4 Oil Corp. (Cor4) adjacent to our Suffield property in Alberta, Canada. We continue to advance oil drilling operations in the exciting Ellerslie play.(1)

I am very pleased to have assumed the President and CEO role from January 1, 2024. IPC has a world class set of asset and management teams which is further complemented by a very experienced and skilled Board; this combined with our high-quality assets makes IPC a differentiator amongst the E&P space. I look forward to continuing to advance the proven strategies of IPC in this exciting year of financial strength, operational excellence and continued growth.”

2023 Business Highlights
Average net production of approximately 49,600 boepd for the fourth quarter of 2023 was in line with the high end of the guidance range for the period (52% heavy crude oil, 13% light and medium crude oil and 35% natural gas).(1)
Full year 2023 average net production was 51,100 boepd, above the high end of annual guidance and a record high for IPC.(1)
Following the decision in Q1 2023 to develop Phase 1 of the Blackrod project, work on the project has progressed in line within the overall schedule and budget to first oil in late 2026. Ke