Mr. Majid Shafiq reports

I3 ENERGY PLC ANNOUNCES INTERIM REPORT AND OPERATIONAL UPDATE FOR H1 2023

i3 Energy PLC has released the unaudited results for its period ended June 30, 2023. A copy of the company's unaudited interim financial statements will be available shortly on the company's website.

Highlights and outlook

Highlights

Financial highlights:

• H1 2023 revenue (net of royalties) of 75.5 million pounds sterling (H1 2022: 101.6 million pounds sterling), net operating income of 38.9 million pounds sterling (H1 2022: 68.8 million pounds sterling), and cash flow from operations of 24.3 million pounds sterling (H1 2022: 48.4 million pounds sterling);
• Successfully completed the new $100-million, three-year, first-lien debt facility with Trafigura Canada Ltd. (a subsidiary of Trafigura Pte. Ltd.) and redeemed the H1 2019 loan notes in full.

Dividends:

• During the first half of 2023, i3 declared total dividends of 0.855 pence per share (totalling 10,215,000 pounds sterling).
• In June, 2023, the company revised its annual dividend guidance from a monthly equivalent of 0.1710 to 0.0855 pence per share, to be paid quarterly, which annualizes to approximately 12.3 million pounds sterling based on the number of ordinary shares outstanding as at June 30, 2023.

Operational highlights:

• Average H1 2023 production of 20,640 barrels of oil equivalent per day (boepd) for the six-month period (9 per cent higher than 18,950 boepd achieved in H1 2022) while exiting H1 above 22,000 boepd.
• Average Q2 2023 production of approximately 18,529 boepd, representing a 5-per-cent decrease from Q2 2022, was more favourable than anticipated given that approximately 3,100 boepd were off-line for the quarter due to restrictions associated with the Alberta wildfires, unanticipated apportionment issues associated with the Pembina Peace Pipeline liquids line, and the scheduled turnarounds and debottlenecking projects.
• Post May/June curtailments, company production has recovered with a July average rate of 22,065 boepd.
• Drilled eight gross (5.5 net) wells during H1 in the company's core central Alberta, Wapiti and Clearwater assets as part of the 2023 capital program.
• Carbon emission equivalent emission reduction initiatives continued with electrification of 12 well sites in Carmangay and Retlaw.
• Responsive corporate action throughout Alberta and British Columbia during the May and June wildfire situation, focusing on the protection and safety of field staff, industry partners, emergency responders and the impacted communities, while minimizing production downtime and ensuring asset integrity.
• • As a result of the wildfires, certain facilities were periodically shut in with resultant calendar day downtime estimated at 1,650 boepd and 385 boepd, respectively, for May and June.
• i3 performed 20 operated turnarounds on its facilities in central Alberta, to ensure the regulatory compliance and integrity of its assets.
• • The turnaround operations were completed on time and within budgeted forecasts, and affected June's production by 7,230 boepd.
• The company's Q1 Wapiti Cardium program is now producing unrestricted, with peak initial production (IP) rates exceeding GLJ's proved plus probable forecasts.

Outlook

A summary of key events which occurred after the reporting period are presented in Note 19 to the financial statements. The group'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 established 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 operations safely and in an environmentally secure manner.

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

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

"H1 2023 was another very active period for i3. We completed our planned Q1 capital program, drilling eight gross (5.5 net) wells in our central Alberta, Wapiti and Clearwater acreage, refinanced our outstanding loan notes which were due in May with a new $100-million loan facility, and successfully conducted 20 planned operated facility turnarounds, whilst safely managing our operations during the recent extended period of wildfires in Alberta. Our asset base continues to perform well, having averaged 20,640 boepd in H1, 9 per cent higher than the same period last year, and exiting H1 at greater than 22,000 boepd, and with 2P reserves of 182 mmboe [million barrels of oil equivalent] provides a solid platform for growth.

"Commodity price weakness in the first half of the year meant the company revised its 2023 capital and dividend program in June, having declared 10,215,000 pounds sterling in dividends to our shareholders in H1. Improvement in commodity prices in July and August and future pricing has resulted in an increase of around 20 per cent in our forecast for full-year net operating income to $90[-million] (U.S.) to $95-million (U.S.). Price volatility has also resulted in potential opportunities for growth via M&A and we continue to monitor the market to ensure our capital allocation for the remainder of the year is optimized. We are confident that our business model, allied with our asset base and the skills and dedication of our staff, will continue to create and extract value through the commodity price cycle."

Qualified person's statement

In accordance with the Alternative Investment Market 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.

About i3 Energy PLC

i3 Energy is an oil and gas company with a low-cost, diversified, growing production base in Canada's most prolific hydrocarbon region, the Western Canadian sedimentary basin, and appraisal assets in the North Sea with significant upside.

The company is well positioned to deliver future growth through the optimization of its existing asset base and the acquisition of long-life, low-decline conventional production assets.