International Petroleum Corporation

Quarterly Report • Aug 5, 2025

International Petroleum Corporation Announces Second Quarter 2025 Financial and Operational Results and Releases Sustainability Report

International Petroleum Corporation Announces Second Quarter 2025 Financial and Operational Results and Releases Sustainability Report

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, 2025. IPC also released its sixth annual Sustainability Report

detailing IPC's sustainability approach and initiatives.

William Lundin, IPC's President and Chief Executive Officer, comments: "IPC

continued to achieve strong operational and financial performance during Q2

2025 across all of our operations in Canada, Malaysia and France. Our operating

and financial results during the quarter were in line with the 2025 guidance

announced at our Capital Markets Day in February as we continue to execute

according to our budget and planned work program. The Blackrod Phase 1

development project in Canada continues to progress as planned. We have

completed around 85% of the current normal course issuer bid to the end of July

2025, having repurchased and cancelled over 5.3% of our outstanding shares since

December 2024. IPC now has fewer outstanding shares than at inception in April

2017 and we have not only grown our production and asset base substantially

since that time, but we also look forward to the upcoming completion of the

transformational Blackrod Phase 1 project."

Q2 2025 Business Highlights

* Average net production of approximately 43,600 boepd for the second quarter

of 2025, within the guidance range for the period (52% heavy crude oil, 14%

light and medium crude oil and 34% natural gas).(()(1))

* Continued progressing Phase 1 development activity as well as future phase

resource maturation works at the Blackrod asset in Canada.

* At Onion Lake Thermal, Canada, two of four planned production infill wells

and the eighth Pad L sustaining well pair were brought online.

* Successfully completed the drilling and workover program at the Bertam

Field, Malaysia during July 2025.

* 1.8 million IPC common shares repurchased and cancelled during Q2 2025 under

the normal course issuer bid (NCIB) and continuing with target to complete

the full 2024/2025 NCIB this year.

Q2 2025 Financial Highlights

* Operating costs per boe of USD 17.8 for Q2 2025, marginally below

guidance.(()(3)())

* Operating cash flow (OCF) generation of MUSD 55 for Q2 2025, in line with

guidance.(()(3)())

* Capital and decommissioning expenditures of MUSD 100 for Q2 2025, in line

with guidance.

* Free cash flow (FCF) generation for Q2 2025 amounted to MUSD -58 (MUSD 6

pre-Blackrod capital expenditures).(()(3)())

* Gross cash of MUSD 79 and net debt of MUSD 375 as at June 30, 2025.(()(3)())

* Net result of MUSD 14 for Q2 2025.

Reserves and Resources

* Total 2P reserves as at December 31, 2024 of 493 MMboe, with a reserve life

index (RLI) of 31 years.((1)()()(2)())

* Contingent resources (best estimate, unrisked) as at December 31, 2024 of

1,107 MMboe.((1)()(2)())

* 2P reserves net asset value (NAV) as at December 31, 2024 of MUSD 3,083 (10%

discount rate).(()(1)()()(2)())

2025 Annual Guidance

* Full year 2025 average net production guidance range forecast maintained at

43,000 to 45,000 boepd.((1)())

* Full year 2025 operating costs guidance range forecast maintained at USD 18

to 19 per boe.(()(3)())

* Full year 2025 OCF revised guidance estimated at between MUSD 245 and 260

(assuming Brent USD 60 to 75 per barrel for the remainder of 2025) from

previous guidance of between MUSD 240 and 270.(()(3)())((4))

* Full year 2025 capital and decommissioning expenditures guidance forecast

maintained at MUSD 320 (including MUSD 230 for the Blackrod asset).

* Full year 2025 FCF revised guidance estimated at between MUSD -135 and -120

(assuming Brent USD 60 to 75 per barrel for the remainder of 2025) from

previous guidance of between MUSD -135 and -110.(()(3)())((4))

Three months ended June Six months ended June

30 30

------------------------------------------------------------------------------

USD Thousands 2025 2024 2025 2024

------------------------------------------------------------------------------

Revenue 158,892 219,040 337,384 425,459

Gross profit 23,663 72,708 67,812 127,892

Net result 13,850 45,210 30,081 78,929

Operating cash flow (()(3)()) 54,873 101,941 129,663 191,242

Free cash flow (()(3)()) (58,252) 7,559 (101,424) (35,752)

EBITDA (()(3)()) 51,519 103,971 122,465 190,991

Net cash/(debt) (()(3)()) (374,977) (88,220) (374,977) (88,220)

------------------------------------------------------------------------------

During the second quarter of 2025, oil prices were volatile with Brent prices

ranging from lows of USD 60 per barrel to highs of over USD 77 per barrel. The

average Brent price for the quarter was approximately USD 68 per barrel, as

compared to just below USD 76 per barrel for the first quarter of 2025. This

second quarter volatility was driven by announcements early in the quarter by

OPEC and the OPEC+ group to increase supply in excess of expectations, at the

same time as the United States proposing high tariffs to countries deemed in a

trade surplus of US goods. The US then delayed implementation of these tariffs

which, combined with the increased conflicts in the Middle East, influenced

higher world oil prices in early June. From the end of the quarter and into July

2025, Brent prices have remained more stable in a range just below USD 70 per

barrel. Beyond the short-term shocks during the second quarter, global oil

inventories remain below the 5-year average, high geopolitical tensions

continue, and non-OPEC oil production (in particular in the US) is unlikely to

grow at current prices. These factors should be positive for future oil prices.

During this large expenditure year for the Blackrod Phase 1 project, IPC

continued to hedge oil prices in the second quarter of 2025 through zero cost

collars. IPC's oil hedges in total represent around 50% of our aggregate

forecast 2025 oil production at around USD 76 and USD 71 per barrel for Dated

Brent and West Texas Intermediate (WTI), respectively, as well as a WTI collar

between USD 65 and USD 75 per barrel, for the remainder of 2025.

In Canada, WTI to Western Canadian Select (WCS) crude price differentials during

the second quarter of 2025 averaged USD 10.2 per barrel. The WTI to WCS

differential has benefited from the TMX pipeline expansion and tightened as the

pipeline provides an alternative transportation route away from the US Gulf

Coast. There are currently no tariffs on Canadian crude oil exports to the

United States, which are covered by the US Mexico Canada free trade agreement.

IPC has hedged the WTI to WCS differential for approximately 50% of our forecast

2025 Canadian oil production at USD 14 per barrel for 2025.

Natural gas markets in Canada for the second quarter of 2025 remained weak. The

average AECO gas price was CAD 1.7 per Mcf for the second quarter of 2025 and

IPC achieved an average realized price of CAD 1.8 per Mcf during the quarter.

There is a potential for improved pricing for Canadian gas benchmark prices

following the start-up of the LNG Canada project in British Columbia, which may

relieve elevated Canadian gas inventories. Approximately 50% of our net long

exposure is hedged at CAD 2.4 per Mcf to end October 2025, dropping to around

15% for November and December at CAD 2.6 per mcf.

Second Quarter 2025 Highlights and Full Year 2025 Guidance

During the second quarter of 2025, our portfolio delivered average net

production of 43,600 boepd, in line with guidance. At Onion Lake Thermal, two

infill wells and a Pad L sustaining well pair were brought online in the

quarter. In Malaysia, the extended reach drilling and workover program was

successfully completed with the new infill well A21 and worked over well A15

brought on stream at the end of July. Early indications are in line with

expectations as the production wells go through an initial clean up and

stabilisation period. We maintain the full year 2025 average net production

guidance range of 43,000 to 45,000 boepd.((1))

Our operating costs per boe for the second quarter of 2025 was USD 17.8,

marginally below guidance. Full year 2025 operating expenditure guidance of USD

18.0 to 19.0 per boe remains unchanged.(()(3)())

Operating cash flow (OCF) generation for the second quarter of 2025 was MUSD

55. Full year 2025 OCF guidance is tightened to MUSD 245 to 260 (assuming Brent

USD 60 to 75 per barrel for the remainder of 2025).(()(3)())((4))

Capital and decommissioning expenditure for the second quarter of 2025 was MUSD

100 in line with guidance. Full year 2025 capital and decommissioning

expenditure of MUSD 320 is maintained.

Free cash flow (FCF) generation was MUSD -58 (MUSD 6 pre-Blackrod capital

expenditures) during the second quarter of 2025. Full year 2025 FCF guidance is

tightened to MUSD -135 to -120 (assuming Brent USD 60 to 75 per barrel for the

remainder of 2025) after taking into account MUSD 320 of forecast full year

2025 capital expenditures (including MUSD 230 relating to the Blackrod

asset).(()(3)())((4))

As at June 30, 2025, IPC's net debt position increased to MUSD 375, from a net

debt position of MUSD 314 as at March 31, 2025, mainly driven by the funding of

capital expenditures and the continuing share repurchase program (NCIB). Gross

cash as at June 30, 2025 amounts to MUSD 79 and IPC has access to a Canadian

revolving credit facility of greater than MUSD 180 (fully committed, available

and undrawn as at June 30, 2025), following the increase of that facility from

MCAD 180 to MCAD 250 during the second quarter. The access to liquidity supports

IPC to follow through on its key strategic objectives of enhancing stakeholder

value through organic growth, stakeholder returns, and pursuing value adding

M&A.((3))

Blackrod

The Blackrod asset is 100% owned by IPC and contains 259 MMboe of 2P reserves

and 1,025 MMboe of contingent resources (best estimate, unrisked) with

regulatory approval to produce up to 80,000 bopd. In early 2023, IPC sanctioned

the Phase 1 development targeting plateau production rates of 30,000 bopd with a

growth capital expenditure guidance of MUSD 850 and first oil expected in late

2026, marking the first major commercial Steam Assisted Gravity Drainage (SAGD)

development undertaken in Alberta since the mid to late 2010s. The multi-year

Phase 1 development guidance is maintained, with significant progress achieved

to date. Since the Phase 1 project sanction to the end of Q2 2025, capital

expenditures of MUSD 729 have been spent, or approximately 86% of the MUSD 850

growth capital guidance to first oil.((1))

All major work activities continued to advance in accordance with plan at the

Blackrod asset during the second quarter. The final Central Processing Facility

(CPF) module was delivered to site during the quarter, marking a significant

milestone achievement for the project. Mechanical, electrical and

instrumentation installations remain the key areas of focus for the CPF and well

pad facilities prior to start-up. IPC remains strongly positioned to deliver the

transformational Phase 1 development as planned. In parallel, with the

responsible Phase 1 development activity, IPC is progressing future resource

maturation works at Blackrod.

IPC intends to fund the remaining Blackrod capital expenditure with forecast

cash flow generated by its operations, cash on hand and drawing under the

existing Canadian credit facility if needed.((3))

Stakeholder Returns: Normal Course Issuer Bid

In Q4 2024, IPC announced the renewal of the NCIB, with the ability to

repurchase up to approximately 7.5 million common shares over the period of

December 5, 2024 to December 4, 2025. Under the 2024/2025 NCIB, IPC repurchased

and cancelled approximately 0.8 million common shares in December 2024, 5.5

million common shares during the first half of 2025, and a further 0.2 million

common shares purchased under other exemptions in Canada. The average price of

common shares repurchased under the 2024/2025 NCIB during the first half of

2025 was around SEK 140 / CAD 19 per share.

As at June 30, 2025, IPC had a total of 113,354,532 common shares issued and

outstanding and IPC held no common shares in treasury. As at July 31, 2025, IPC

had a total of 113,278,532 common shares issued and outstanding and IPC held no

common shares in treasury.

Notwithstanding the final major capital investment year at Blackrod in 2025, IPC

has purchased and cancelled approximately 85% of the maximum 7.5 million common

shares allowed under the 2024/2025 NCIB by the end of July 2025 and intends to

purchase and cancel the remaining 1.1 million common shares under that program

in 2025. This would result in the cancellation of 6.2% of common shares

outstanding as at the beginning of December 2024. IPC continues to believe that

reducing the number of shares outstanding in combination with investing in long-

life 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 2025 financial report, IPC

releases its sixth annual Sustainability Report. The Sustainability Report

provides details on IPC's approach to sustainability and material sustainability

topics highlighting specific initiatives and progress. The Sustainability Report

is available on IPC's website at www.international-petroleum.com.

During the second quarter of 2025, 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. IPC has also made a commitment to maintain

2025 levels of 20 kg CO(2)/boe through to the end of 2028.(()(5)())

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, 2024 (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 net present value

(NPV), are described in the AIF. NAV is calculated as NPV less net debt of MUSD

209 as at December 31, 2024.

(3)     Non-IFRS measures, see "Non-IFRS Measures" below and in the MD&A.

(4)     OCF and FCF forecasts at Brent USD 60 and 75 per barrel assume Brent to

WTI differential of USD 3 and 5 per barrel, respectively, and WTI to WCS

differential of USD 10 and 15 per barrel, respectively, for the remainder of

2025. OCF and FCF forecasts assume gas price on average of CAD 1.25 per Mcf for

the third quarter of 2025 and CAD 2.50 per Mcf for the fourth quarter of 2025.

(5)     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 Or 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 CEST on August 5, 2025. 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, 2025 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:

* 2025 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 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 its 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 oil prices and net present values;

* 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 return of value to IPC's shareholders as a result of 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 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, tariffs, 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.

The forward-looking statements are based on certain key expectations and

assumptions made by IPC, including expectations and assumptions concerning: the

potential impact of tariffs implemented in 2025 by the U.S. and Canadian

governments and that other than the tariffs that have been implemented, neither

the U.S. nor Canada (i) increases the rate or scope of such tariffs, or imposes

new tariffs, on the import of goods from one country to the other, including on

oil and natural gas, and/or (ii) imposes any other form of tax, restriction or

prohibition on the import or export of products from one country to the other,

including on oil and natural gas; prevailing commodity prices and currency

exchange rates; applicable royalty rates and tax laws; interest rates; future

well production rates and reserve and contingent resource volumes; operating

costs; our ability to maintain our existing credit ratings; our ability to

achieve our performance targets; the timing of receipt of regulatory approvals;

the performance of existing wells; the success obtained in drilling new wells;

anticipated timing and results of capital expenditures; the sufficiency of

budgeted capital expenditures in carrying out planned activities; the timing,

location and extent of future drilling operations; the successful completion of

acquisitions and dispositions and that we will be able to implement our

standards, controls, procedures and policies in respect of any acquisitions and

realize the expected synergies on the anticipated timeline or at all; the

benefits of acquisitions; the state of the economy and the exploration and

production business in the jurisdictions in which IPC operates and globally; the

availability and cost of financing, labour and services; our intention to

complete share repurchases under our normal course issuer bid program, including

the funding of such share repurchases, existing and future market conditions,

including with respect to the price of our common shares, and compliance with

respect to applicable limitations under securities laws and regulations and

stock exchange policies; and the ability to market crude oil, natural gas and

natural gas liquids successfully.

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; political or economic developments, including, without limitation,

the risk that (i) one or both of the U.S. and Canadian governments increases the

rate or scope of tariffs implemented in 2025, or imposes new tariffs on the

import of goods from one country to the other, including on oil and natural gas,

(ii) the U.S. and/or Canada imposes any other form of tax, restriction or

prohibition on the import or export of products from one country to the other,

including on oil and natural gas, and (iii) the tariffs imposed by the U.S. on

other countries and responses thereto could have a material adverse effect on

the Canadian, U.S. and global economies, and by extension the Canadian oil and

natural gas industry and the Corporation; and changes in legislation, including

but not limited to tax laws, royalties, environmental and abandonment

regulations. Readers are cautioned that the foregoing list of factors is not

exhaustive.

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"), the Corporation's Annual Information Form (AIF) for the

year ended December 31, 2024, (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 production and FCF generation are based on IPC's current business

plans over the periods of 2025 to 2029 and 2030 to 2034, less net debt of USD

209 million as at December 31, 2024, with assumptions based on the reports of

IPC's independent reserves evaluators, and including certain corporate

adjustments relating to estimated general and administration costs and hedging,

and excluding shareholder distributions and financing costs. Assumptions include

average net production of approximately 57 Mboepd over the period of 2025 to

2029, average net production of approximately 63 Mboepd over the period of 2030

to 2034, average Brent oil prices of USD 75 to 95 per bbl 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 AIF. 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 2025 2024 2025 2024

-------------------------------------------------------------------------------

Revenue 158,892 219,040 337,384 425,459

Production costs and net sales

of diluent to third party(1) (103,682) (111,381) (206,870) (227,126)

Current tax (337) (5,718) (851) (7,091)

------------------------------------------------

Operating cash flow 54,873 101,941 129,663 191,242

-------------------------------------------------------------------------------

(1) Includes net sales of diluent to third party amounting to USD 228 thousand

for the second quarter of 2025 and USD 419 thousand for the first six months of

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 2025 2024 2025 2024

-------------------------------------------------------------------------------

Operating cash flow - see

above 54,873 101,941 129,663 191,242

Capital expenditures (97,925) (84,101) (196,811) (209,357)

Abandonment and farm-in

expenditures(1) (2,097) (2,241) (2,418) (2,363)

General, administration and

depreciation expenses before

depreciation(2) (3,691) (3,689) (8,049) (7,342)

Cash financial items(3) (9,412) (4,351) (23,809) (7,932)

------------------------------------------------

Free cash flow (58,252) 7,559 (101,424) (35,752)

-------------------------------------------------------------------------------

(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

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 2025 2024 2025 2024

-------------------------------------------------------------------------------

Net result 13,850 45,210 30,081 78,929

Net financial items (159) 10,048 18,696 19,818

Income tax 6,167 13,470 10,846 21,216

Depletion and decommissioning

costs 29,321 32,661 58,337 65,814

Depreciation of other tangible

fixed assets 1,461 2,218 3,378 4,480

Exploration and business

development costs 537 72 568 147

Sale of assets(1) (10) - (104) -

Depreciation included in

general, administration and

depreciation expenses(2) 352 292 663 587

------------------------------------------------

EBITDA 51,519 103,971 122,465 190,991

-------------------------------------------------------------------------------

(1) Sale of assets is included under "Other income/(expense)" but not

specifically disclosed in the Financial Statements

(2) Item is not shown in the Financial Statements

Operating costs

The following table sets out how operating costs is calculated:

Three months ended June Six months ended June

30 30

------------------------------------------------

USD Thousands 2025 2024 2025 2024

-----------------------------------------------------------------------------

Production costs 103,910 111,381 207,289 227,126

Cost of blending (33,269) (41,675) (70,995) (86,881)

Change in inventory position (119) (4,872) 3,381 405

------------------------------------------------

Operating costs 70,522 64,834 139,675 140,650

-----------------------------------------------------------------------------

Net cash/(debt)

The following table sets out how net cash / (debt) is calculated from figures

shown in the Financial Statements:

USD Thousands June 30, 2025 December 31, 2024

----------------------------------------------------------------

Bank loans (3,863) (5,121)

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

Cash and cash equivalents 78,886 246,593

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Net cash/(debt) (374,977) (208,528)

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(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, 2024, 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, 2024 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, 2024, 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, 2024 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, 2024 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 493

MMboe as at December 31, 2024 by the mid-point of the 2025 CMD production

guidance of 43,000 to 45,000 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

Medium Crude Conventional Natural

Heavy Crude Oil Oil Gas Total

(Mbopd) (Mbopd) (per day) (Mboepd)

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Three months

ended

89.8 MMcf

June 30, 2025 22.7 5.9 (15.0 Mboe) 43.6

96.5 MMcf

June 30, 2024 24.3 8.0 (16.1 Mboe) 48.4

Six months ended

89.0 MMcf

June 30, 2025 23.0 6.2 (14.8 Mboe) 44.0

96.2 MMcf

June 30, 2024 24.6 8.0 (16.0 Mboe) 48.6

Year ended

December 95.1 MMcf

31, 2024 23.9 7.7 (15.8 Mboe) 47.4

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This press release also makes reference to IPC's forecast total average daily

production of 43,000 to 45,000 boepd for 2025. IPC estimates that approximately

52% of that production will be comprised of heavy oil, approximately 15% will be

comprised of light and medium crude oil and approximately 33% 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.