Mr. Majid Shafiq reports

I3 ENERGY PLC ANNOUNCES FINAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2022

i3 Energy PLC has released the audited results for the year ended Dec. 31, 2022. A copy of the company's financial statements will be posted to shareholders and made available shortly on the company's website. The notice of annual general meeting (AGM) will be posted in due course. The AGM will be held at 11 a.m. BST on June 30, 2023, at the offices of WH Ireland Ltd. at 24 Martin Lane, London, EC4R 0DR.

2022 achievements

Organic production growth delivering record production:

• Four quarters of production growth with peak daily rates exceeding 24,000 barrels of oil equivalent per day (boepd).

Shareholder return:

• Increased dividends declared from 3.4 million pounds sterling in 2021 to 17.4 million pounds sterling in 2022 and announced 2023 dividend guidance of 24.5 million pounds sterling (2.052 pence/share).

Capital program:

• 75.8 million pounds sterling capital expenditure in 2022 delivered 31 gross (20.1 net) wells;
• Increased the group's leasehold position to 628,000 net acres;
• Aggregate well productivity met or exceeded management expectation and key wells drilled in strategic Simonette and Clearwater acreage;
• Through participation in land sale auctions, farm-ins and joint ventures, and partner consolidation, i3 has grown its acreage in the strategic Clearwater play to greater than 69,600 acres (109 sections) with an average working interest of 76 per cent;
• Farmed out 25 per cent of the Serenity licence to Europa, which paid 46.25 per cent of the Serenity 13/23c-12 appraisal well costs. The well was drilled in October, 2022. The company is evaluating one-well development options.

Reserves growth:

• i3's 2022 capital program helped to increase proved plus probable reserves (2P) by 18 per cent to 182 million barrels of oil equivalent (mmboe), resulting in reserves replacement of 479 per cent on a 2P basis.
• The group now has 376 gross booked drilling locations in its audited reserves and 940 including unbooked locations.

Environmental, social, governance performance:

• Published inaugural annual ESG report;
• Eliminated all high-bleed pressure controllers and commenced installation of solar-powered pumps. These initiatives when complete will eliminate 71,450 tonnes carbon dioxide equivalent methane emissions, equivalent to taking approximately 16,000 cars off the road;
• Completed the electrification of seven pumpjacks in Carmangay and Retlaw to reduce use of diesel and propane for power generation, with a further 29 electrifications under way;
• Implemented efficient disposal of oil-based drilling fluid, avoiding 2,500 tonnes of CO2e emissions;
• Continuing annual abandonment and reclamation program abandoned 69 wells and decommissioned 37 well sites, representing approximately 14 per cent of operated non-producing wells.

Outlook

A summary of key events which occurred after the reporting period are presented in Note 24 to the financial statements and includes the announcement on May 31, 2023, of the successful redemption of the company's outstanding 22-million-pound-sterling H1 2019 loan notes, due May 31, 2023, and the establishment of a $100-million debt facility, which will provide i3 greater financial flexibility and enhanced credit capacity to further execute its continuing business plan. The company's focus for the remainder of 2023 will be on three key areas:

1. The growth of i3's Canadian business through the deployment of capital into its large proven undeveloped reserves base, operational excellence to improve uptime and field performance, and strategic upsizing in core areas;
2. Maintaining flexibility to adapt to economic challenges while maximizing total shareholder return;
3. Conducting its operations safely and in an environmentally secure manner.

The company continuously evaluates opportunities to strengthen its balance sheet whilst maintaining tight control of its costs and working capital position.

Majid Shafiq, chief executive officer of i3 Energy, commented:

"Following an active period of acquisitions over the course of 2020 and 2021, 2022 was a period of consolidation and organic growth. Our most recent significant acquisition in Q3 2021 of circa 8,400 boepd in our core central Alberta area from Cenovus Energy, was integrated into our Canadian business and operational and organizational efficiencies implemented across our entire portfolio. Commodity price strength in the second half of 2021 led us to pivot from growth via acquisitions to organic growth through the exploitation of our extensive inventory of drilling locations and in January, 2022, we commenced our inaugural operated drilling program with an announced $47-million (U.S.) budget. Based on the positive results from the wells drilled in Q1 2022, the Canadian capex program was expanded to circa $90-million (U.S.) and during the course of the year we drilled a total of 20.1 net wells in Canada. The program was very successful with all wells meeting or exceeding management expectations in terms of production performance and costs versus budget. In conjunction with an extensive workover program the new wells contributed to the achievement of our stated goal of reaching 24,000 boepd before the end of the year and also to a very positive year-end reserves audit which resulted in an 18-per-cent increase in our booked 2P reserves and a 479-per-cent increase in our reserves replacement ratio on a 2P basis. In the U.K., a farmout of the Serenity appraisal well allowed the company to significantly reduce its capital exposure and the well was successfully drilled to complete the appraisal of the field. The potential for a single-well development is being evaluated.

"Two thousand twenty-two also saw the publication of our maiden ESG report and we are very pleased that activities throughout the year saw significant reductions in CO2e emissions as we began to implement methane emission reduction initiatives. We continued to deliver on our total shareholder return model, as we balanced our production growth with increased cash returns to investors with an expanded dividend program which saw over 17.4 million pounds sterling in dividends being declared during the year.

"The first half of 2023 has seen continued operational and commercial activity. Our 2023 capital program has commenced with the prespring break component completed and we are very pleased to have repaid our outstanding debt and established a new $100-million loan facility, which validates the quality and scale of our reserves base in Canada.

"All of this was possible due to the expertise and commitment of our staff in Canada and the U.K. and I would like to thank them for their continued efforts and all our investors and shareholders for their continued support. We look forward to another successful year as we navigate the operational and business challenges that lay ahead with continued dedication and hard work."

AIM application -- correction

i3 also announces that, further to the announcement on May 17, 2021, 5,277,045 ordinary shares were issued to Baker Hughes, a GE company (BHGE) in relation to warrants exercised and these were not admitted to trading on the Alternative Investment Market at that time. An application will be made for the ordinary shares to be admitted to trading on AIM and are expected to be admitted on June 13, 2023.

The ordinary shares rank pari passu with the existing ordinary shares, including the right to receive all dividends and other distributions declared after the date of issue.

Following admission of the ordinary shares, the company's issued share capital will remain the same as previously reported at 1,201,874,464 ordinary shares with a nominal value of 0.0001 pound sterling each. Shareholders may use this figure of ordinary shares as the denominator by which they are required to notify their interest in, or change their interest in, the company under the disclosure guidance and transparency rules.

Qualified person's statement

In accordance with the AIM note for mining and oil and gas companies, i3 discloses that Mr. Shafiq is the qualified person who has reviewed the technical information contained in this document. He has a master's degree in petroleum engineering from Heriot-Watt University and is a member of the Society of Petroleum Engineers. Mr. Shafiq consents to the inclusion of the information in the form and context in which it appears.

We seek Safe Harbor.