IPC Announces First Quarter 2023 Financial and Operational Results

May 2, 2023

International Petroleum Corporation (IPC or the Corporation) (TSX, Nasdaq Stockholm: IPCO) today released its financial and operational results and related management’s discussion and analysis (MD&A) for the three months ended March 31, 2023.

Mike Nicholson, IPC’s Chief Executive Officer, comments: “We are pleased to announce another quarter of record average net daily production, as IPC achieved 52,800 barrels of oil equivalent per day (boepd) during the first quarter of 2023. Our financial results during the quarter are in line with the 2023 guidance announced at our Capital Markets Day in February as we continue to produce cash flows from our operations in Canada, Malaysia and France. During the first quarter, we announced and completed the acquisition of Cor4 Oil Corp. in Canada, expected to add approximately 4,000 boepd to our 2023 average net daily production. We also continue purchases of IPC common shares under the normal course issuer bid in accordance with our stated capital allocation framework. In addition, we are progressing the development of Phase 1 of the Blackrod project in Canada, with work to date in line with schedule and budget.”

Q1 2023 Business Highlights
•	Record quarterly average net production of approximately 52,800 barrels of oil equivalent (boe) per day (boepd) for the first quarter of 2023 (50% heavy crude oil, 18% light and medium crude oil and 32% natural gas).
•	Decision taken to advance the development of Phase 1 of the Blackrod project in Canada, maturing 218 million barrels of oil equivalent (MMboe) of 2P reserves .(1,2)
•	Successful completion of the Cor4 acquisition in Canada forecast to add approximately 4,000 boepd of average production over 2023 and 15.9 MMboe of 2P reserves.(1,2)
•	Ten year extension signed for the Bertam Field, Malaysia production sharing contract (PSC) to 2035.
•	4.76 million common shares purchased and cancelled during Q1 2023 under IPC’s normal course issuer bid (NCIB).

 

Q1 2023 Financial Highlights
•	Operating costs per boe of USD 17.3 for Q1 2023 in line with CMD guidance for Q1 2023.(1,3)
•	Strong operating cash flow (OCF) generation for Q1 2023 amounted to MUSD 76.(1,3)
•	Capital and decommissioning expenditures of MUSD 55 for Q1 2023 in line with CMD guidance.(1)
•	Free cash flow (FCF) generation for Q1 2023 amounted to MUSD 16.(1,3)
•	Net cash of MUSD 67 as at March 31 , 2023.(3)
•	Increased Canadian Revolving Credit Facility (RCF) from CAD 75 to 150 million (fully committed and undrawn) and extended maturity from February 2024 to May 2025.
•	Net result of MUSD 40 for Q1 2023.

 

Reserves and Resources
•	Total 2P reserves as at December 31, 2022 of 487 million boe (MMboe), with a reserves life index (RLI) of 27 years.(1,2)
•	Contingent resources (best estimate, unrisked) as at December 31 , 2022 of 1,162 MMboe.(1,2)

 

2023 Annual Guidance
•	Full year 2023 average net production forecast expected to be at the upper end of 48,000 to 50,000 boepd guidance range.(1)
•	Full year 2023 operating costs guidance forecast at USD 17.5 to 18 per boe. (1,3)
•	Full year 2023 OCF guidance estimated at between MUSD 250 to 495 (assuming Brent USD 70 to 100 per barrel) . (1,3)
•	Full year 2023 capital and decommissioning expenditures guidance forecast at MUSD 365, including MUSD 287 relating to Phase 1 of the Blackrod project.(1)
•	Full year 2023 FCF forecast ranges from approximately MUSD -145 to 105 (assuming Brent USD 70 to 100 per barrel) after taking into account MUSD 287 of proposed 2023 Blackrod capital expenditures.(1,3)