IPC Corporate Update: Blackrod Phase 1 First Oil Achieved

International Petroleum Corporation (IPC) (TSX, Nasdaq Stockholm: IPCO) is pleased to announce first oil has been achieved at Phase 1 of the Blackrod project, ahead of schedule and on budget.

The Blackrod Phase 1 development project began production on May 31, 2026 as the initial well pairs commenced conversion from steam circulation to production. As the remaining well pairs undergoing steam circulation reach the necessary conformance conditions, they will subsequently be converted to oil production. The forecast plateau production rate of 30,000 barrels of oil per day (bopd) for the Phase 1 project is expected to be achieved by late 2027, a quarter earlier than originally guided at the time of project sanction in 2023.

Phase 1 of the Blackrod project has been developed as a Central Processing Facility (CPF) connected to three well pad facilities and three separate drainage patterns. The Blackrod property is pipeline-connected for gas and condensate input sources and crude output which connects into the Grand Rapids Pipeline to Edmonton, Alberta. Phase 1 has 2P reserves of 311 million barrels of oil equivalent (boe) and Blackrod has a further 1.1 billion boe of contingent resources (best estimate, unrisked). IPC controls a 100% working interest in the Blackrod asset, allowing for full flexibility on the next phases of growth to increase production incrementally from the expected 30,000 bopd up to the regulatory approved 80,000 bopd.

Blackrod Phase 1 was delivered on budget, with a final forecast outturn of 855 MUSD of growth capital investment compared to the original estimate of 850 MUSD. With this Phase 1 growth capital in the past, the go forward sustaining capital intensity is expected to be less than USD 5 per barrel. Excluding any contingent resource recognition or future phase expansion developments, Phase 1 is expected to maintain 30,000 bopd of production for in excess of 25 years.

William Lundin, IPC's President and Chief Executive Officer, comments: “I am very pleased to announce first oil from the Blackrod Phase 1 commercial development. This is a transformational moment for International Petroleum Corporation. Since IPC acquired the asset in 2018, the Blackrod project has exceeded all expectations in terms of project execution and resource growth. It is a testament to the hard work and dedication from all stakeholders involved in this asset. This is the largest greenfield thermal development project developed in Alberta in a decade, and I would like to thank our best-in-class IPC personnel and contractors involved in bringing this vision into a reality.

As we unlock Blackrod through the first phase of the development, this is only the beginning of a multi-decade growth asset that has regulatory approval to reach 80,000 bopd. Organic growth is one of the key capital allocation pillars of IPC, and Blackrod is a direct example of the tremendous value that can be created through that strategy. IPC is a proven acquirer, developer and proficient operator of primary resources with an extremely bright outlook, and we look forward to continuing work to propel IPC forward to new heights.”