Mr. Majid Shafiq reports

I3 ENERGY CANADA LTD. ANNOUNCES 2023 RESERVES

i3 Energy PLC has released the results of its 2023 year-end (YE) reserves report, for its subsidiary i3 Energy Canada Ltd.

i3's independent reserve report (the GLJ report) was prepared by GLJ Ltd. in accordance with standards contained in the Canadian Oil and Gas Handbook (COGEH) and National Instrument 51-101 -- Standards of Disclosure for Oil and Gas Activities, with an effective date of Dec. 31, 2023. All cash figures presented below are expressed in United States dollars unless otherwise stated.

Highlights

Successful execution of 2023 capital program and strong performance of the company's production base maintained reserve volumes across key categories despite limited capital expenditures due to declining commodity prices:

• Total company interest total proved (1P) reserves and total proved plus probable (2P) reserves were effectively maintained year-over-year at 92.9 million barrels of oil equivalent (Mboe) and 179.9 Mboe, respectively.
• Proved developed producing (PDP), 1P and 2P reserve volumes all experienced strong positive technical revisions, despite the dramatic reduction in forecasted natural gas and natural gas liquids pricing, which impacts approximately 76 per cent of the company's produced commodities.

Established reserves highlights strong underlying corporate value:

• The before-tax net present value (NPV) of cash flows attributable to the company's reserves, discounted at 10 per cent, has been determined to be $303.1-million ($400.9-million (Canadian)), $501.3-million ($663.1-million (Canadian)) and $1,026.4-million ($1,357.5-million (Canadian)) for its PDP, 1P and 2P reserves, respectively, being indicative of the company's robust portfolio of economic development opportunities.
• Reserves values per share, after adjusting for year-end net debt of approximately $23-million, of 0.18 pound sterling per share (31 Canadian cents) (PDP), 0.31 pound sterling per share (53 Canadian cents) (1P) and 0.67 pound sterling per share ($1.10 (Canadian)) (2P), represent significant premiums to the company's current share price.

Long reserve life and low decline rate reinforce the sustainability of the company's total return model:

• PDP, 1P and 2P reserve life index of 7.1 years, 12.6 years and 23 years, respectively, show increased reserve life across each of the categories.
• Following the 2023 capital program, i3's top-tier corporate decline rate for 2024 of approximately 15 per cent, allied with an extensive portfolio of diversified booked drilling locations, underpins the company's growth and income strategy.

Strong finding, development and acquisition (FD&A metrics and recycle ratios:

• Very strong economics demonstrated by low-cost and high-return projects.
• Efficient FD&A of $5.67/boe (PDP), $2.32/boe (1P) and $1.76/boe (2P), after including changes in FDC (future development costs), translate to strong recycle ratios of 2.17 times (PDP), 5.31 times (1P) and 6.97 times (2P).

Large inventory of booked development locations with significant inventory of future unbooked locations:

• Total gross booked locations of 391 (254.4 net) across the company's four core areas, for a total company inventory (booked and unbooked) of greater than 950 gross (550 net) undeveloped locations.
• Total undeveloped inventory represents greater than 50 years of development drilling based on the company's 2023 capital program.

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

"We are extremely pleased with the results of our 2023 year-end reserves audit which once again confirms the high-quality nature of our assets, and speaks to the tenacity and diligence of our employees in Canada, both in the head office and at field level. In 2023, we limited our capital expenditures due to the low-commodity-price environment and, despite that, we have managed to maintain our reserves volumes essentially flat. This is a testament to the quality of our base assets and also our drilling inventory. This quality is characterized by a low decline rate, the substantial scale of our operations, and the diversity of the fields and reservoirs we produce from, which allows us to add reserves with good oil field management in addition to drilling operations. Our 2P reserves are valued at over $1-billion, or 0.67 pounds sterling per share, demonstrating the value potential of this portfolio, and the scope for many years of growth from a total shareholder return perspective."

Two thousand twenty-three reserves review

i3's independent reserve report was prepared by GLJ in accordance with standards contained in the Canadian Oil and Gas Handbook and National Instrument 51-101 -- Standards of Disclosure for Oil and Gas Activities, with an effective date of Dec. 31 2023. The reserves evaluation was based on the average forecast pricing of GLJ, McDaniel & Associates Consultants Ltd., and Sproule Associates Ltd. (three consultants average (3CA)) and foreign exchange rates at Jan. 1, 2024.

Reserves included are company interest reserves which reflect i3's total working interest reserves before the deduction of any royalties and including any royalty interests payable to the company. Additional reserve information as required under NI 51-101 will be included on forms 51-101 F1-F3, which will be filed on SEDAR+. The numbers outlined in the tables below may not add due to rounding.

Summary of reserves

The tables entitled "i3 YE 2023 -- reserves volumes" and "i3 YE 2023 -- reserves values" outline GLJ's estimates of i3's reserves at Dec. 31, 2023.

Performance measures -- finding and development (F&D), finding, development and acquisition costs, and recycle ratio

F&D and FD&A costs for 2023, 2022, 2021 and the three-year average are presented in the associated tables. The capital costs used in the calculations are those costs related to land acquisition and retention, seismic, drilling, completions, tangible well site, tie-ins, and facilities, plus the change in estimated future development costs as per the GLJ report. Net acquisition costs are the cash outlays in respect of acquisitions, minus the proceeds from the disposition of properties during the year. The reserves used in this calculation are working interest reserve additions, including technical revisions and changes due to economic factors. The recycle ratio is the net operating income (revenue minus royalties, opex (operating expenses), transportation and processing) per barrel divided by the cost per barrel (F&D or FD&A).

Reserve life index (RLI)

RLI is calculated by taking the total company interest reserves from the GLJ report and dividing them by the projected 2024 production, as estimated in the GLJ report.

Forecast prices used in estimates

GLJ has employed the three consultants average forecast prices in the GLJ report. The 3CA forecast prices, exchange rate and inflation (2 per cent post-2038) assumptions as at Dec. 31, 2023, are shown in the associated table.

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 100-per-cent-owned asset base and the acquisition of long-life, low-decline conventional production assets.

i3 is dedicated to responsible corporate practices and the environment, and places high value on adhering to strong environmental, social and governance (ESG) practices. i3 is proud of its performance to date as a responsible steward of the environment, people and capital management. The company is committed to maintaining an ESG strategy, which has broader implications to long-term value creation, as these benefits extend beyond regulatory requirements.

Qualified person's statement

In accordance with the AIM (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.