International Petroleum Corporation Announces Third Quarter 2024 Financial and Operational Results

05 Nov 2024 07:30 CET

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 nine
months ended September 30, 2024.

William Lundin, IPC's President and Chief Executive Officer, comments: "We are
pleased to announce another positive quarter of operational performance. IPC
achieved average net daily production during the third quarter of 45,000 barrels
of oil equivalent per day (boepd), following planned maintenance shutdowns
during the quarter. We also continue to purchase IPC common shares under the
normal course issuer bid (NCIB). We have now almost completed the 2023/2024
NCIB, reducing the outstanding number of common shares by over 6% since the
beginning of December 2023. We intend to seek Toronto Stock Exchange approval to
renew the NCIB in December 2024. We are also pleased to report on the progress
achieved at the Blackrod Phase 1 development in Canada, which remains on
schedule and on budget."

Q3 2024 Business Highlights

* Average net production of approximately 45,000 boepd for Q3 2024, in line
with guidance (49% heavy crude oil, 17% light and medium crude oil and 34%
natural gas).(()(1))
* Successful completion of planned maintenance shutdowns at Onion Lake Thermal
(OLT) in Canada and the Bertam field in Malaysia.
* Drilling activity at the Suffield area in Canada continued with four wells
drilled in Q3 2024 and completed by October 2024.
* Development activities on Phase 1 of the Blackrod project continue to
progress on schedule and on budget, with forecast first oil in late 2026.
* 2.6 million IPC common shares purchased and cancelled during Q3 2024 under
IPC's normal course issuer bid (NCIB), on track to complete the 2023/2024
NCIB during November 2024.
* IPC plans to seek Toronto Stock Exchange approval for the renewal of the
NCIB in December 2024.

Q3 2024 Financial Highlights

* Operating costs per boe of USD 17.9 for Q3 2024, below guidance.(()(3)())
* Operating cash flow (OCF) and Earnings Before Interest, Tax, Depreciation
and Amortization (EBITDA) of MUSD 73 and MUSD 68 respectively in line with
guidance for Q3 2024.(()(3)())
* Capital and decommissioning expenditures of MUSD 102 for Q3 2024, in line
with guidance.
* Free cash flow (FCF) for Q3 2024 amounted to MUSD -38 (MUSD 44 pre-Blackrod
Phase 1 project funding).(()(3)())
* Gross cash of MUSD 299 and net debt of MUSD 157 as at September
30, 2024.(()(3)())
* Net result of MUSD 23 for Q3 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 guidance revised to below USD 18 per
boe.(()(3)())
* Full year 2024 OCF guidance estimated at between MUSD 335 and 342, assuming
Brent USD 70 to 80 per barrel 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 -140 and -133 (between
MUSD 222 and 229 pre-Blackrod Phase 1 project funding), assuming Brent USD
70 to 80 per barrel for the remainder of 2024.(()(3))

  Three months
ended Nine months ended
September 30 September 30
--------------------------------------------------------------------
USD Thousands 2024   2023   2024   2023
--------------------------------------------------------------------
Revenue 173,200 257,366   598,659 655,446

Gross profit 39,505 93,429   167,397 210,559

Net result 22,875 71,681   101,804 143,269

Operating cash flow (()(3)()) 72,589 119,142   263,831 279,414

Free cash flow (()(3)()) (38,269) 34,703   (74,021) 67,379

EBITDA (()(3)()) 68,313 123,054   259,304 284,334

Net cash/(debt) (()(3)()) (157,228) 83,097   (157,228) 83,097
--------------------------------------------------------------------

Oil prices softened in the third quarter with Brent prices averaging USD 80 per
barrel compared with USD 85 per barrel in the second quarter. Volatility during
the quarter was high with Brent prices ranging from USD 89 per barrel in July to
USD 70 per barrel in September. Notwithstanding the volatility in prices, the
crude market was in a deficit through the third quarter, aided by the proactive
supply management by the OPEC+ group. The continued conflicts in the Middle East
and Ukraine led to increased oil prices, though these were partially offset by
concerns over global oil demand growth, in particular consumer and industrial
demand in China. Despite some of these negative factors, the physical market
remains tight with OECD crude stock levels below the five-year average, with oil
demand expected to be at an all-time high in 2024 and continue to grow in 2025.
Approximately 50% of IPC's forecast 2024 oil production is hedged at USD 80 per
barrel WTI or USD 85 per barrel Dated Brent through to the end of 2024.

The third quarter 2024 WTI to Western Canadian Select (WCS) price differentials
averaged just under USD 14 per barrel, in line with the second quarter and
approximately USD 5 per barrel lower than the first quarter differential average
of USD 19 per barrel. The Trans Mountain expansion (TMX) pipeline continues to
support tighter differentials with the Western Canadian Sedimentary Basin (WCSB)
now having excess spare pipeline capacity for the first time in more than a
decade. Crude exports from the new TMX pipeline are flowing off the coast of
British Columbia, with deliveries to the US West Coast and Asia creating new end
destinations for Canadian heavy oil. Around 70% of our forecast 2024 Canadian
WCS production volumes are hedged at a WTI/WCS differential of USD 15 per
barrel.

Natural gas prices in Canada remained supressed in the third quarter, with AECO
pricing averaging CAD 0.67 per Mcf during the period, compared to CAD 1.17 per
Mcf average for the second quarter. This has led to some Canadian natural gas
producers curtailing production as western Canada gas storage levels continue to
sit above the five-year range. IPC implemented hedges during the third quarter
for approximately 14,500 Mcf per day at CAD 1.57 per Mcf from August to year end
2024.

Third Quarter 2024 Highlights and Full Year 2024 Guidance

IPC delivered average daily production rates of 45,000 boepd for the third
quarter. The average daily production for the first nine months of 2024 was
47,400 boepd and the full year Capital Markets Day (CMD) production guidance of
46,000 to 48,000 boepd is maintained. During the third quarter, planned
maintenance shutdowns at the Onion Lake Thermal (OLT) asset in Canada and at the
Bertam field in Malaysia were successfully completed. High uptimes were achieved
across all major producing assets in our portfolio during the quarter and the
business benefited from the oil wells drilled within our Southern Alberta assets
and the new wells brought on stream from sustaining Pad L at the OLT
asset.(()(1))

Operating costs in the third quarter of 2024 were below forecast at USD 17.9 per
boe. The lower costs were largely driven by lower energy input costs within our
Canadian asset base. Full year 2024 operating costs guidance is revised to less
than USD 18 per boe, below the CMD guidance range of USD 18 to 19 per
boe.(()(3)())

Operating cash flow (OCF) for the third quarter of 2024 was USD 73 million in
line with forecast. Full year 2024 OCF guidance is revised to USD 335 to 342
million (assuming Brent USD 70 to 80 per barrel for the remainder of
2024).(()(3)())

Capital and decommissioning expenditure for the third quarter was in line with
plan at USD 102 million. Our full year 2024 capital and decommissioning
expenditure guidance is unchanged at USD 437 million.

Free cash flow (FCF) was USD -38 million (or USD 44 million pre-Blackrod Phase
1 development funding) during the third quarter of 2024. Full year 2024 FCF
guidance is revised to USD -140 to -133 million (or USD 222 to 229 million pre-
Blackrod Phase 1 development funding) assuming Brent USD 70 to 80 per barrel for
the remainder of 2024.(()(3)())

Net debt was increased during the third quarter of 2024 by approximately USD 69
million to USD 157 million.(()(3)) This is due to the growth capital expenditure
at the Blackrod Phase 1 project and continued funding of the normal course
issuer bid (NCIB) share repurchase program. The gross cash position as at
September 30, 2024 was USD 299 million. In the third quarter, IPC enhanced its
financing position by entering into a letter of credit facility in Canada to
cover all of its existing operational letters of credit, giving full
availability under IPC's undrawn CAD 180 million Revolving Credit Facility.

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 more 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, 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.(()(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 245 million spent through the first
nine months of 2024. All major third-party contracts have been executed,
including but not limited to, the engineering, procurement and construction
(EPC) agreements for the central processing facility (CPF) and well pad
facilities, midstream agreements for the input fuel gas, diluent and oil blend
pipelines, and drilling rig and stakeholder agreements. All major long lead
items have been procured and pre-operations onboarding continues as the asset
undergoes rapid change from a pilot steam assisted gravity drainage (SAGD)
operation to a commercial SAGD operation. IPC's core operational philosophy is
to responsibly develop and commission projects with the staff that are going to
manage and operate the asset to ensure the seamless transition from development
to operations.

As at the end of the third quarter of 2024, over half of the Blackrod Phase 1
development capital had been spent since the project sanction in early 2023. All
major work streams are progressing as planned and the focus continues to be on
executing 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

Under the current 2023/2024 NCIB, IPC has the ability to repurchase up to
approximately 8.3 million common shares over the period of December 5, 2023 to
December 4, 2024. IPC repurchased and cancelled approximately 7.5 million common
shares up to the end of September 2024. The average price of common shares
purchased under the 2023/2024 NCIB was SEK 132 / CAD 17 per share. IPC expects
to complete the 2023/2024 NCIB during November 2024, resulting in the
cancellation of 6.5% of the total number of common shares outstanding as at the
beginning of December 2023.

As at September 30, 2024, IPC had a total of 120,751,038 common shares issued
and outstanding and IPC held 30,000 common shares in treasury. As at October
31, 2024, IPC had a total of 120,244,638 common shares issued and outstanding
and IPC held 44,400 common shares in treasury.

The IPC Board of Directors has approved, subject to acceptance by the Toronto
Stock Exchange (TSX), the renewal of IPC's NCIB for a further twelve months from
December 2024 to December 2025. We expect that the 2024/2025 NCIB will permit
IPC to purchase on the TSX and/or Nasdaq Stockholm, and cancel, up to a further
approximately 7.5 million common shares, representing approximately 6.2% of the
total outstanding common shares (or 10% of IPC's "public float" under applicable
TSX rules) following completion of the current 2023/2024 NCIB. IPC continues to
believe that reducing the number of common 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

As part of IPC's commitment to operational excellence and responsible
development, its objective is to reduce risk and eliminate hazards to prevent
occurrence of accidents, ill health, and environmental damage, as these are
essential to the success of our business operations. During the third 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 end 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 November 5, 2024. The
Corporation's unaudited interim condensed consolidated financial statements
(Financial Statements) and management's discussion and analysis (MD&A) for the
three and nine months ended September 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;
* Current and future production performance, operations and development
potential of the Onion Lake Thermal, Suffield, Brooks, Ferguson and Mooney
operations, including the timing and success of future oil and gas drilling
and optimization programs;
* 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 ability of IPC to renew the NCIB and the number of common shares which
may be purchased under a renewed NCIB;
* 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.

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 September Nine months ended September
30   30
------------------------------ ----------------------------
USD Thousands 2024 2023   2024 2023
-------------------------------------------------- ----------------------------
Revenue 173,200 257,366   598,659 655,446

Production costs (100,984) (130,765)   (328,110) (364,889)

Current tax 373 (7,459)   (6,718) (16,045)
------------------------------ ----------------------------
Operating cash flow 72,589 119,142   263,831 274,512
-------------------------------------------------- ----------------------------

The operating cash flow for the nine months ended September 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 279,414 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 Nine months ended
September 30   September 30
--------------------------- ---------------------------
USD Thousands 2024 2023   2024 2023
--------------------------------------------------- ---------------------------
Operating cash flow -
see above 72,589 119,142 263,831 274,512

Capital expenditures (99,100) (76,844)   (308,457) (183,904)

Abandonment and farm-in
expenditures(1) (2,575) (2,755) (4,938) (7,683)

General, administration
and depreciation
expenses before
depreciation(2) (3,903) (3,547) (11,245) (11,124)

Cash financial items(3) (5,280) (1,293)   (13,212) (3,593)
--------------------------- ---------------------------
Free cash flow (38,269) 34,703   (74,021) 68,208
--------------------------------------------------- ---------------------------

(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 nine months ended September 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
67,379 thousand.

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

  Three months ended Nine months ended
September 30   September 30
-------------------------- --------------------------
USD Thousands 2024 2023   2024 2023
---------------------------------------------------- --------------------------
Net result 22,875 71,681   101,804 143,269

Net financial items 4,124 4,257   23,942 16,227

Income tax 8,257 25,451   29,473 50,671

Depletion and
decommissioning costs 30,491 31,687 96,305 71,488

Depreciation of other
tangible fixed assets 2,023 1,509 6,503 6,503

Exploration and business
development costs 197 (24) 344 2,007

Depreciation included in
general, administration
and depreciation expenses
(1) 346 405 933 1,180

Sale of Assets - (11,912)   - (11,912)
-------------------------- --------------------------
EBITDA 68,313 123,054   259,304 279,433
---------------------------------------------------- --------------------------

(1 )Item is not shown in the Financial Statements

The EBITDA for the nine months ended September 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 284,334
thousand.

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

  Three months ended Nine months ended September
September 30   30
---------------------------- -----------------------------
USD Thousands 2024 2023   2024 2023
------------------------------------------------- -----------------------------
Production costs 100,984 130,765   328,110 364,889

Cost of blending (29,818) (39,836)   (116,699) (128,523)

Change in inventory
position 2,755 (8,067) 3,160 2,228
---------------------------- -----------------------------
Operating costs 73,921 82,862   214,571 238,594
------------------------------------------------- -----------------------------

The operating costs for the nine months ended September 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
245,395 thousand.

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

USD Thousands September 30, 2024 December 31, 2023
---------------------------------------------------------------------
Bank loans (6,431) (9,031)

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

Cash and cash equivalents 299,203 517,074
-----------------------------------------
Net cash/(debt) (157,228) 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 Conventional
Heavy Crude Oil Medium Crude Natural Gas (per Total
(Mbopd) Oil (Mbopd) day) (Mboepd)
-------------------------------------------------------------------------------
Three months
ended

September 91.9 MMcf
30, 2024 21.9 7.8 (15.3 Mboe) 45.0

September 103.4 MMcf
30, 2023 25.8 7.1 (17.3 Mboe) 50.2

Nine months ended

September 94.8 MMcf
30, 2024 23.7 7.9 (15.8 Mboe) 47.4

September 102.4 MMcf
30, 2023 25.9 8.6 (17.1 Mboe) 51.6

Year ended

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

631216_Q3 2024 FS and MD-A.pdf