International Petroleum Corporation Announces Second Quarter 2024 Financial and Operational Results and Releases Sustainability Report

30 Jul 2024 07:30 CEST

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 and six months
ended June 30, 2024. IPC also released its Sustainability Report, which details
the Corporation's environmental, social and governance (ESG) performance.

William Lundin, IPC's President and Chief Executive Officer, comments: "We are
pleased to announce another positive quarter of production and operational
performance, in line with our guidance. IPC achieved an average net daily
production during the second quarter of 48,400 barrels of oil equivalent per day
(boepd), with our operating cash flows strengthened by robust oil prices. At the
same time, we also continue to purchase IPC common shares under the normal
course issuer bid, having now completed two-thirds of the current 2023/2024
program and on track to complete the program by December. We are also pleased to
report that the Blackrod Phase 1 development in Canada continues to progress in
line with schedule and budget, with a substantial amount of work advancing
during this 2024 peak investment year as we continue to forecast first oil in
late 2026."

Q2 2024 Business Highlights

* Average net production of approximately 48,400 boepd for Q2 2024 was in line
with the guidance range for the period (50% heavy crude oil, 17% light and
medium crude oil and 33% natural gas).((1))
* Progressing development activities on Phase 1 of the Blackrod project which
remains on schedule and on budget.
* 2.2 million IPC common shares purchased and cancelled during Q2 2024 under
IPC's normal course issuer bid (NCIB) and continuing with target to complete
the full 2023/2024 NCIB this year.

Q2 2024 Financial Highlights

* Operating costs per boe of USD 14.7 for Q2 2024, below guidance.(()(3)())
* Operating cash flow (OCF) generation of MUSD 102 for Q2 2024, ahead of the
guidance range.(()(3)())
* Capital and decommissioning expenditures of MUSD 86 for Q2 2024, in line
with guidance.
* Free cash flow (FCF) generation for Q2 2024 amounted to MUSD 8 (MUSD 75 pre-
Blackrod Phase 1 project funding).(()(3)())
* Gross cash of MUSD 369 and net debt of MUSD 88 as at June 30, 2024.(()(3)())
* Net result of MUSD 45 for Q2 2024.

Reserves and Resources

* Total 2P reserves as at December 31, 2023 of 468 MMboe, with a reserves life
index (RLI) of 27 years.((1)()()(2)())
* Contingent resources (best estimate, unrisked) as at December 31, 2023 of
1,145 MMboe.(()(1)()()(2)())

2024 Annual Guidance

* Full year 2024 average net production guidance range maintained at 46,000 to
48,000 boepd.((1)())
* Full year 2024 operating costs expected to be at the low end of the guidance
range of USD 18 to 19 per boe.(()(3)())
* Full year 2024 OCF guidance estimated at between MUSD 327 and 350 (assuming
Brent USD 70 to 90 per boe for the remainder of 2024).(()(3)())
* Full year 2024 capital and decommissioning expenditures guidance forecast
maintained at MUSD 437.
* Full year 2024 FCF guidance estimated at between MUSD -146 and -123
(assuming Brent USD 70 to 90 per boe for the remainder of 2024), after
taking into account MUSD 362 of forecast full year 2024 capital expenditures
relating to the continued development of Phase 1 of the Blackrod
project.(()(3)())

  Three months ended June   Six months ended June
30 30
-------------------------------------------------------------------------------
USD Thousands 2024 2023   2024 2023
-------------------------------------------------------------------------------
Revenue 219,040 205,564   425,459 398,080

Gross profit 72,708 52,747   127,892 117,130

Net result 45,210 32,025   78,929 71,588

Operating cash flow
(()(3)()) 101,941 84,372   191,242 160,272

Free cash flow (()(3)()) 7,559 16,415   (35,752) 32,674

EBITDA (()(3)()) 103,971 85,201   190,991 161,280

Net cash/(debt) (()(3)()) (88,220) 63,548   (88,220) 63,548
-------------------------------------------------------------------------------

Market conditions for oil commodities continued to improve following the first
quarter of 2024, with Brent prices averaging USD 85 per barrel in the second
quarter compared to USD 83 per barrel during the first quarter. Proactive supply
management by the OPEC+ group, led by Saudi Arabia, continues to impact the
balancing of the market. The OPEC decision in early June to extend official
production cuts to end 2025 and to gradually unwind some of the voluntary cuts
by the end of September 2024, subject to market conditions, signalled what may
be a continued commitment to sustain higher oil prices. Global inventories have
remained largely unchanged through the second quarter, with OECD levels
remaining below the five year average, and market observers expect a deficit in
the oil market for the remainder of 2024. With tight physical markets supported
by cooling global inflation, strong crude prices are expected to persist for the
second half of the year. Around 50% of IPC's forecast 2024 oil production is
hedged at USD 80 per barrel West Texas Intermediate (WTI) or USD 85 per barrel
Dated Brent through the third quarter to end 2024.

With the Trans Mountain expansion (TMX) pipeline commencing operations in the
second quarter of 2024, the WTI to Western Canadian Select (WCS) crude price
differentials averaged around USD 14 per barrel, approximately USD 5 per barrel
lower than the first quarter differential average of USD 19 per barrel. Crude
exports from the new TMX pipeline are ramping up off the coast of British
Columbia, with deliveries to the US West Coast and Asia creating new end
destinations for Canadian heavy oil. This, combined with some curtailed volumes
in the Western Canadian Sedimentary Basin due to forest fires, are driving
tighter differential forecasts for the third quarter of 2024. Our base case
market guidance for the WTI/WCS differential remains unchanged at USD 15 per
barrel for 2024. Approximately 70% of our forecast 2024 Canadian WCS production
volumes are hedged at WTI/WCS differentials of USD 15 per barrel.

Natural gas prices remained below our 2024 base case guidance of CAD 2.13 per
Mcf for the second quarter. IPC's average realized gas price was CAD 1.2 per Mcf
during the second quarter, compared to CAD 2.5 per Mcf average for the first
three months of the year. Western Canada gas storage levels sit above the five
year range in anticipation for the Shell-led LNG Canada project start-up in
British Columbia. Natural gas prices are anticipated to stay supressed until the
additional export capacity is on stream from the LNG Canada project.

Second Quarter 2024 Highlights and Full Year 2024 Guidance

IPC delivered average daily production rates of 48,400 boepd for the second
quarter, in line with our 2024 Capital Markets Day (CMD) production forecast.
High uptimes were achieved across all major producing assets in our portfolio
during the quarter and the business benefited from the recently drilled oil
wells within our Southern Alberta assets and the new wells brought on stream
from sustaining Pad L at the Onion Lake Thermal (OLT) asset in Canada. With
strong aggregate IPC production of 48,600 boepd on average for the first half of
the year, IPC is well positioned to deliver within the production guidance of
46,000 to 48,000 boepd for the full year.((1))

Operating costs in the second quarter of 2024 were USD 14.7 per boe, lower than
our guidance. The lower costs were largely driven by lower energy input costs
within our Canadian assets. In the third quarter of 2024, a two week planned
maintenance shutdown is scheduled at the OLT asset as well as a multi-day
planned maintenance shutdown at the Bertam field. Full year 2024 operating costs
are expected to be at the low end of the guidance range of USD 18 to 19 per
boe.(()(3)())

Operating cash flow (OCF) generation for the second quarter of 2024 was USD 102
million, ahead of guidance due to lower operating costs and stronger oil
benchmark prices than forecast. Full year 2024 OCF guidance is revised to USD
327 to 350 million (assuming Brent USD 70 to 90 per barrel for the remainder of
2024).(()(3)())

Capital and decommissioning expenditure for the second quarter was in line with
plan at USD 86 million. Our full year 2024 capital and decommissioning
expenditure guidance is unchanged at USD 437 million.

Free cash flow (FCF) generation was USD 8 million (or USD 75 million pre-
Blackrod Phase 1 development funding) during the second quarter of 2024. Full
year 2024 FCF guidance is revised to USD -146 to -123 million (or USD 216 to
239 million pre-Blackrod Phase 1 development funding) assuming Brent USD 70 to
90 per barrel.(()(3)())

Net debt was increased during the second quarter of 2024 by approximately USD
27 million to USD 88 million, largely as a result of funding the normal course
issuer bid (NCIB) share repurchase program.((3)) The gross cash position as at
June 30, 2024 was USD 369 million. Furthermore, IPC's CAD 180 million Revolving
Credit Facility (RCF) has been extended to maturity in May 2026.

With a robust balance sheet and strong cashflow generation from the producing
assets, IPC is strongly positioned to deliver on our three strategic pillars of
organic growth, shareholder returns and pursue value adding M&A.

Blackrod Phase 1 Project

The Blackrod asset is 100% owned by IPC and hosts the largest booked reserves
and contingent resources within the IPC portfolio. After greater than a decade
of pilot operations, subsurface delineation and commercial engineering studies,
IPC sanctioned the Phase 1 development in the first quarter of 2023. The Phase
1 development targets 218 MMboe of 2P reserves, out of the 1.28 billion boe of
full field 2P reserves and best estimate contingent resources, with a multi-year
forecast capital expenditure of USD 850 million to first oil planned in late
2026. The Phase 1 development is planned for plateau production of 30,000 bopd
which is expected by early 2028. As at January 1, 2024, the net present value
(NPV10) of the Blackrod Phase 1 development is USD 981 million and Phase 1 has
an estimated WTI breakeven price of less than USD 55 per barrel.((1))((2))

2024 marks a peak investment year at the Blackrod Phase 1 project for IPC, with
USD 362 million planned to be spent in the year. Project progress has advanced
according to plan, with approximately USD 163 million spent through the first
half of 2024. All major third party contracts have been executed, including but
not limited to, engineering procurement construction (EPC) agreements for the
central processing facility (CPF), well pad facilities, midstream agreements for
the input fuel gas, diluent and oil blend pipelines, drilling rig and
stakeholder agreements. All major long lead items have been procured and pre-
operations onboarding is under way as the asset undergoes rapid change from a
pilot steam assisted gravity drainage (SAGD) operation to a commercial SAGD
operation. It is IPC's core operational philosophy to responsibly develop and
commission projects with staff that are going to manage and operate the asset to
ensure the transition from development to operations is seamless.

As at the end of the second quarter of 2024, just under half of the Blackrod
Phase 1 development capital had been spent since the project sanction in early
2023. All major work streams have progressed as planned and the focus remains on
executing to the detailed sequencing of events as facility modules are safely
delivered and installed at site. The total Phase 1 project guidance of USD 850
million capital expenditure to first oil in late 2026 is unchanged. IPC intends
to fund the remaining Blackrod Phase 1 development costs with forecast cash flow
generated by its operations and cash on hand.

Stakeholder Returns: Normal Course Issuer Bid

In the fourth quarter of 2023, IPC announced the renewal of the NCIB, with the
ability to repurchase up to approximately 8.3 million common shares over the
period of December 5, 2023 to December 4, 2024. Under the 2023/2024 NCIB, IPC
repurchased and cancelled approximately 1.2 million common shares in December
2023 and a further 3.7 million common shares during the first half of 2024. The
average price of common shares purchased under the 2023/2024 NCIB during the
first half of 2024 was SEK 126 / CAD 16 per share.

As at June 30, 2024, IPC had a total of 123,271,885 common shares issued and
outstanding and IPC held no common shares in treasury. As at July 26, 2024, IPC
had a total of 123,271,885 common shares issued and outstanding and IPC held
1,027,147 common shares in treasury.

Notwithstanding the record level of capital investment forecast for 2024, IPC
confirms its intention to continue to purchase and cancel common shares under
the 2023/2024 NCIB to the remaining limit as at July 1, 2024 of 3.4 million
common shares by early December 2024. This would result in the cancellation of
6.5% of shares outstanding as at the beginning of December 2023. IPC continues
to believe that reducing the number of shares outstanding while in parallel
investing in material production growth at the Blackrod project will prove to be
a winning formula for our stakeholders.

Environmental, Social and Governance (ESG) Performance

Alongside the publication of our second quarter 2024 financial report, IPC
releases its fifth annual Sustainability Report. The Sustainability Report
provides details on IPC's approach to sustainability highlighting specific
initiatives related to the key focus areas set by IPC. The Sustainability Report
is available on IPC's website at www.international-petroleum.com.

During the second quarter of 2024, IPC recorded no material safety or
environmental incidents.

As previously announced, IPC targets a reduction of our net GHG emissions
intensity by the end of 2025 to 50% of IPC's 2019 baseline and IPC remains on
track to achieve this reduction. During the first quarter of 2024, IPC announced
the commitment to remain at 2025 levels of 20 kg CO(2)/boe through to the end of
2028.((4))

Notes:
(1)     See "Supplemental Information regarding Product Types" in "Reserves and
Resources Advisory" below. See also the annual information form for the year
ended December 31, 2023 (AIF) available on IPC's website at www.international-
petroleum.com and under IPC's profile on SEDAR+ at www.sedarplus.ca.
(2)     See "Reserves and Resources Advisory" below. Further information with
respect to IPC's reserves, contingent resources and estimates of future net
revenue, including assumptions relating to the calculation of NPV, are described
in the AIF.
(3)     Non-IFRS measures, see "Non-IFRS Measures" below and in the MD&A.
(4)     Emissions intensity is the ratio between oil and gas production and the
associated carbon emissions, and net emissions intensity reflects gross
emissions less operational emission reductions and carbon offsets.

International Petroleum Corp. (IPC) is an international oil and gas exploration
and production company with a high quality portfolio of assets located in
Canada, Malaysia and France, providing a solid foundation for organic and
inorganic growth. IPC is a member of the Lundin Group of Companies. IPC is
incorporated in Canada and IPC's shares are listed on the Toronto Stock Exchange
(TSX) and the Nasdaq Stockholm exchange under the symbol "IPCO".

For further information, please contact:

Rebecca Gordon   Robert Eriksson
SVP Corporate Planning and Investor Relations Media Manager
rebecca.gordon@international-petroleum.com reriksson@rive6.ch
Tel: +41 22 595 10 50 Tel: +46 701 11 26 15

This information is information that International Petroleum Corporation is
required to make public pursuant to the EU Market Abuse Regulation and the
Securities Markets Act. The information was submitted for publication, through
the contact persons set out above, at 07:30 CET on July 30, 2024. The
Corporation's unaudited interim condensed consolidated financial statements
(Financial Statements) and management's discussion and analysis (MD&A) for the
three and six months ended June 30, 2024 have been filed on SEDAR+
(www.sedarplus.ca) and are also available on the Corporation's website
(www.international-petroleum.com).

Forward-Looking Statements
This press release contains statements and information which constitute
"forward-looking statements" or "forward-looking information" (within the
meaning of applicable securities legislation). Such statements and information
(together, "forward-looking statements") relate to future events, including the
Corporation's future performance, business prospects or opportunities. Actual
results may differ materially from those expressed or implied by forward-looking
statements. The forward-looking statements contained in this press release are
expressly qualified by this cautionary statement. Forward-looking statements
speak only as of the date of this press release, unless otherwise indicated. IPC
does not intend, and does not assume any obligation, to update these forward-
looking statements, except as required by applicable laws.

All statements other than statements of historical fact may be forward-looking
statements. Any statements that express or involve discussions with respect to
predictions, expectations, beliefs, plans, projections, forecasts, guidance,
budgets, objectives, assumptions or future events or performance (often, but not
always, using words or phrases such as "seek", "anticipate", "plan", "continue",
"estimate", "expect", "may", "will", "project", "forecast", "predict",
"potential", "targeting", "intend", "could", "might", "should", "believe",
"budget" and similar expressions) are not statements of historical fact and may
be "forward-looking statements".

Forward-looking statements include, but are not limited to, statements with
respect to:

* 2024 production ranges (including total daily average production),
production composition, cash flows, operating costs and capital and
decommissioning expenditure estimates;
* Estimates of future production, cash flows, operating costs and capital
expenditures that are based on IPC's current business plans and assumptions
regarding the business environment, which are subject to change;
* IPC's financial and operational flexibility to continue to react to recent
events and navigate the Corporation through periods of volatile commodity
prices;
* The ability to fully fund future expenditures from cash flows and current
borrowing capacity;
* IPC's intention and ability to continue to implement strategies to build
long-term shareholder value;
* The ability of IPC's portfolio of assets to provide a solid foundation for
organic and inorganic growth;
* The continued facility uptime and reservoir performance in IPC's areas of
operation;
* Development of the Blackrod project in Canada, including estimates of
resource volumes, future production, timing, regulatory approvals, third
party commercial arrangements, breakeven prices and net present value;
* Future development potential of the Suffield, Brooks, Ferguson and Mooney
operations, including the timing and success of future oil and gas drilling
and optimization programs;
* Current and future operations and production performance at Onion Lake
Thermal;
* The potential improvement in the Canadian oil egress situation and IPC's
ability to benefit from any such improvements;
* The ability to maintain current and forecast production in France and
Malaysia;
* The intention and ability of IPC to acquire further common shares under the
NCIB, including the timing of any such purchases;
* The return of value to IPC's shareholders as a result of the NCIB;
* The ability of IPC to implement further shareholder distributions in
addition to the NCIB;
* IPC's ability to implement its greenhouse gas (GHG) emissions intensity and
climate strategies and to achieve its net GHG emissions intensity reduction
targets;
* IPC's ability to implement projects to reduce net emissions intensity,
including potential carbon capture and storage;
* Estimates of reserves and contingent resources;
* The ability to generate free cash flows and use that cash to repay debt;
* IPC's continued access to its existing credit facilities, including current
financial headroom, on terms acceptable to the Corporation;
* IPC's ability to maintain operations, production and business in light of
any future pandemics and the restrictions and disruptions related thereto,
including risks related to production delays and interruptions, changes in
laws and regulations and reliance on third-party operators and
infrastructure;
* IPC's ability to identify and complete future acquisitions;
* Expectations regarding the oil and gas industry in Canada, Malaysia and
France, including assumptions regarding future royalty rates, regulatory
approvals, legislative changes, and ongoing projects and their expected
completion; and
* Future drilling and other exploration and development activities.

Statements relating to "reserves" and "contingent resources" are also deemed to
be forward-looking statements, as they involve the implied assessment, based on
certain estimates and assumptions, that the reserves and resources described
exist in the quantities predicted or estimated and that the reserves and
resources can be profitably produced in the future. Ultimate recovery of
reserves or resources is based on forecasts of future results, estimates of
amounts not yet determinable and assumptions of management.

Although IPC believes that the expectations and assumptions on which such
forward-looking statements are based are reasonable, undue reliance should not
be placed on the forward-looking statements because IPC can give no assurances
that they will prove to be correct. Since forward-looking statements address
future events and conditions, by their very nature they involve inherent risks
and uncertainties. Actual results could differ materially from those currently
anticipated due to a number of factors and risks.

These include, but are not limited to general global economic, market and
business conditions; the risks associated with the oil and gas industry in
general such as operational risks in development, exploration and production;
delays or changes in plans with respect to exploration or development projects
or capital expenditures; the uncertainty of estimates and projections relating
to reserves, resources, production, revenues, costs and expenses; health, safety
and environmental risks; commodity price fluctuations; interest rate and
exchange rate fluctuations; marketing and transportation; loss of markets;
environmental and climate-related risks; competition; innovation and
cybersecurity risks related to our systems, including our costs of addressing or
mitigating such risks; the ability to attract, engage and retain skilled
employees; incorrect assessment of the value of acquisitions; failure to
complete or realize the anticipated benefits of acquisitions or dispositions;
the ability to access sufficient capital from internal and external sources;
failure to obtain required regulatory and other approvals; geopolitical
conflicts, including the war between Ukraine and Russia and the conflict in the
Middle East, and their potential impact on, among other things, global market
conditions; and changes in legislation, including but not limited to tax laws,
royalties, environmental and abandonment regulations.

Additional information on these and other factors that could affect IPC, or its
operations or financial results, are included in the MD&A (See "Risk Factors",
"Cautionary Statement Regarding Forward-Looking Information" and "Reserves and
Resources Advisory" therein), the Corporation's Annual Information Form (AIF)
for the year ended December 31, 2023, (See "Cautionary Statement Regarding
Forward-Looking Information", "Reserves and Resources Advisory" and "Risk
Factors") and other reports on file with applicable securities regulatory
authorities, including previous financial reports, management's discussion and
analysis and material change reports, which may be accessed through the SEDAR+
website (www.sedarplus.ca) or IPC's website (www.international-petroleum.com).

Management of IPC approved the production, operating costs, operating cash flow,
capital and decommissioning expenditures and free cash flow guidance and
estimates contained herein as of the date of this press release. The purpose of
these guidance and estimates is to assist readers in understanding IPC's
expected and targeted financial results, and this information may not be
appropriate for other purposes.

Estimated FCF generation is based on IPC's current business plans over the
periods of 2024 to 2028 and 2029 to 2033. Assumptions include average net
production of approximately 55 Mboepd over the period of 2024 to 2028, average
net production of approximately 65 Mboepd over the period of 2029 to 2033,
average Brent oil prices of USD 75 to 95 per boe escalating by 2% per year, and
average Brent to Western Canadian Select differentials and average gas prices as
estimated by IPC's independent reserves evaluator and as further described in
the MCR. IPC's current business plans and assumptions, and the business
environment, are subject to change. Actual results may differ materially from
forward-looking estimates and forecasts.

Non-IFRS Measures
References are made in this press release to "operating cash flow" (OCF), "free
cash flow" (FCF), "Earnings Before Interest, Tax, Depreciation and Amortization"
(EBITDA), "operating costs" and "net debt"/"net cash", which are not generally
accepted accounting measures under International Financial Reporting Standards
(IFRS) and do not have any standardized meaning prescribed by IFRS and,
therefore, may not be comparable with similar measures presented by other public
companies. Non-IFRS measures should not be considered in isolation or as a
substitute for measures prepared in accordance with IFRS.

The definition of each non-IFRS measure is presented in IPC's MD&A (See "Non-
IFRS Measures" therein).

Operating cash flow
The following table sets out how operating cash flow is calculated from figures
shown in the Financial Statements:

  Three months ended June Six months ended June
30   30
-------------------------- -----------------------
USD Thousands 2024 2023   2024 2023
---------------------------------------------- -----------------------
Revenue 219,040 205,564   425,459 398,080

Production costs (111,381) (116,597)   (227,126) (234,124)

Current tax (5,718) (4,595)   (7,091) (8,586)
-------------------------- -----------------------
Operating cash flow 101,941 84,372   191,242 155,370
---------------------------------------------- -----------------------

The operating cash flow for the six months ended June 30, 2023 including the
operating cash flow contribution of the Brooks assets acquisition from the
effective date of January 1, 2023 to the completion date of March 3, 2023
amounted to USD 160,272 thousand.

Free cash flow
The following table sets out how free cash flow is calculated from figures shown
in the Financial Statements:

  Three months ended June Six months ended June
30   30
-------------------------- -----------------------
USD Thousands 2024 2023   2024 2023
------------------------------------------------------- -----------------------
Operating cash flow - see
above 101,941 84,372 191,242 155,370

Capital expenditures (84,101) (58,822)   (209,357) (107,060)

Abandonment and farm-in
expenditures(1) (2,241) (3,717) (2,363) (4,928)

General, administration and
depreciation expenses before
depreciation(2) (3,689) (3,766) (7,342) (7,577)

Cash financial items(3) (4,351) (1,652)   (7,932) (2,300)
-------------------------- -----------------------
Free cash flow 7,559 16,415   (35,752) 33,505
------------------------------------------------------- -----------------------

(1 )See note 16 to the Financial Statements
(2 )Depreciation is not specifically disclosed in the Financial Statements
(3 )See notes 4 and 5 to the Financial Statements

The free cash flow for the six months ended June 30, 2023 including the free
cash flow contribution of the Brooks assets acquisition from the effective date
of January 1, 2023 to the completion date of March 3, 2023 amounted to USD
32,674 thousand.

EBITDA
The following table sets out the reconciliation from net result from the
consolidated statement of operations to EBITDA:

  Three months ended June Six months ended June
30   30
-------------------------- -----------------------
USD Thousands 2024 2023   2024 2023
------------------------------------------------------- -----------------------
Net result 45,210 32,025   78,929 71,588

Net financial items 10,048 6,955   19,818 11,970

Income tax 13,470 9,609   21,216 25,220

Depletion and
decommissioning costs 32,661 33,362 65,814 39,801

Depreciation of other
tangible fixed assets 2,218 2,436 4,480 4,994

Exploration and business
development costs 72 422 147 2,031

Depreciation included in
general, administration and
depreciation expenses (1) 292 392 587 775
-------------------------- -----------------------
EBITDA 103,971 85,201   190,991 156,379
------------------------------------------------------- -----------------------

(1 )Item is not shown in the Financial Statements

The EBITDA for the six months ended June 30, 2023 including the EBITDA
contribution of the Brooks assets acquisition from the effective date of January
1, 2023 to the completion date of March 3, 2023 amounted to USD 161,280
thousand.

Operating costs
The following table sets out how operating costs is calculated:

  Three months ended June Six months ended June
30   30
-------------------------- -----------------------
USD Thousands 2024 2023   2024 2023
------------------------------------------------------- -----------------------
Production costs 111,381 116,597   227,126 234,124

Cost of blending (41,675) (40,870)   (86,881) (88,687)

Change in inventory position (4,872) 4,560   405 10,295
-------------------------- -----------------------
Operating costs 64,834 80,287   140,650 155,732
------------------------------------------------------- -----------------------

The operating costs for the six months ended June 30, 2023 including the
operating costs contribution of the Brooks assets acquisition from the effective
date of January 1, 2023 to the completion date of March 3, 2023 amounted to USD
162,533 thousand.

Net cash/(debt)
The following table sets out how net cash/(debt) is calculated:

USD Thousands June 30, 2024 December 31, 2023
----------------------------------------------------------------
Bank loans (7,017) (9,031)

Bonds(1) (450,000) (450,000)

Cash and cash equivalents 368,797 517,074
------------------------------------
Net cash/(debt) (88,220) 58,043
----------------------------------------------------------------

(1 )The bond amount represents the redeemable value at maturity (February 2027).

Reserves and Resources Advisory
This press release contains references to estimates of gross and net reserves
and resources attributed to the Corporation's oil and gas assets. For additional
information with respect to such reserves and resources, refer to "Reserves and
Resources Advisory" in the MD&A. Light, medium and heavy crude oil
reserves/resources disclosed in this press release include solution gas and
other by-products. Also see "Supplemental Information regarding Product Types"
below.

Reserve estimates, contingent resource estimates and estimates of future net
revenue in respect of IPC's oil and gas assets in Canada are effective as of
December 31, 2023, and are included in the reports prepared by Sproule
Associates Limited (Sproule), an independent qualified reserves evaluator, in
accordance with National Instrument 51-101 - Standards of Disclosure for Oil and
Gas Activities (NI 51-101) and the Canadian Oil and Gas Evaluation Handbook (the
COGE Handbook) and using Sproule's December 31, 2023 price forecasts.

Reserve estimates, contingent resource estimates and estimates of future net
revenue in respect of IPC's oil and gas assets in France and Malaysia are
effective as of December 31, 2023, and are included in the report prepared by
ERC Equipoise Ltd. (ERCE), an independent qualified reserves auditor, in
accordance with NI 51-101 and the COGE Handbook, and using Sproule's December
31, 2023 price forecasts.

The price forecasts used in the Sproule and ERCE reports are available on the
website of Sproule (sproule.com) and are contained in the AIF. These price
forecasts are as at December 31, 2023 and may not be reflective of current and
future forecast commodity prices.

The reserve life index (RLI) is calculated by dividing the 2P reserves of 468
MMboe as at December 31, 2023 by the mid-point of the 2024 CMD production
guidance of 46,000 to 48,000 boepd.

IPC uses the industry-accepted standard conversion of six thousand cubic feet of
natural gas to one barrel of oil (6 Mcf = 1 bbl). A BOE conversion ratio of 6:1
is based on an energy equivalency conversion method primarily applicable at the
burner tip and does not represent a value equivalency at the wellhead. As the
value ratio between natural gas and crude oil based on the current prices of
natural gas and crude oil is significantly different from the energy equivalency
of 6:1, utilizing a 6:1 conversion basis may be misleading as an indication of
value.

Supplemental Information regarding Product Types

The following table is intended to provide supplemental information about the
product type composition of IPC's net average daily production figures provided
in this press release:

  Light and
Heavy Crude Oil Medium Crude Conventional Natural Total
(Mbopd) Oil (Mbopd) Gas (per day) (Mboepd)
-------------------------------------------------------------------------------
Three months
ended

96.5 MMcf
June 30, 2024 24.3 8.0 (16.1 Mboe) 48.4

104.0 MMcf
June 30, 2023 25.3 9.2 (17.3 Mboe) 51.8

Six months ended

96.2 MMcf
June 30, 2024 24.6 8.0 (16.0 Mboe) 48.6

102.0 MMcf
June 30, 2023 26.0 9.4 (17.0 Mboe) 52.3

Year ended

December 102.8 MMcf
31, 2023 25.8 8.1 (17.1 Mboe) 51.1
-------------------------------------------------------------------------------

This press release also makes reference to IPC's forecast total average daily
production of 46,000 to 48,000 boepd for 2024. IPC estimates that approximately
50% of that production will be comprised of heavy oil, approximately 16% will be
comprised of light and medium crude oil and approximately 34% will be comprised
of conventional natural gas.

Currency
All dollar amounts in this press release are expressed in United States dollars,
except where otherwise noted. References herein to USD mean United States
dollars and to MUSD mean millions of United States dollars. References herein to
CAD mean Canadian dollars.

More information:
Access the news on Oslo Bors NewsWeb site

624227_Q2 2024 FS and MD-A.pdf