i3 Energy PLC Announces Interim Report and Dividend Declaration

Interim Report and Dividend Declaration for the Six Months Ended 30 June 2021

EASTLEIGH, UK / ACCESSWIRE / September 27, 2021 / i3 Energy plc (AIM:I3E)(TSX:ITE), an independent oil and gas company with assets and operations in the UK and Canada, is pleased to announce the unaudited results for the period ended 30 June 2021. A complete copy of the Company's unaudited 2021 H1 Report and Interim Financial Statements will be available on the Company's website at https://i3.energy/investor-relations/regulatory-news.

HIGHLIGHTS

Dividend Declaration

• Concurrent with this Interim Report, i3 announces an H1 2021 dividend of £2.20 million or 0.2 p/share. The Ex-Dividend Date, Record Date and Payment Date will be 7 October 2021, 8 October 2021, and 29 October 2021, respectively
• Including the 0.16 p/share special dividend announced in July, total dividends of 0.36 p/share have been declared during the year to date. These dividends do not include the benefit of the enlarged portfolio following the completion of the acquisition of the assets from Cenovus Energy Inc., which completed post period end. The H2 2021 dividend will benefit from the enlarged cash flow resulting from this transaction

Financial Highlights

• H1 revenue of £26.5mm (net) and net operating income (Revenue less royalties, opex, processing and transportation) of £12.5mm and cash flow from operations of £8mm
• Concluded a reduction of the Company's share premium account and announced an intended special dividend of £1.16 million (or 0.16 p/share which was subsequently paid on 6 August 2021)

Operational Highlights

• Sustained average production above 9,000 boepd for the sixth month period, offsetting expected natural decline through excellent operations management and targeted maintenance capital allocation
• H1 volumes do not include any production from the assets acquired from Cenovus Energy Inc., as the transaction closed post period end. Including production from these assets, production for the week ending 18 September 2021 averaged 18,741 boepd
• Increased exposure to Alberta's premier Clearwater play
• Confirmed presence of oil in three gas wells in i3's extensive Marten Creek acreage, providing a green light for a winter 2021/22 oil appraisal and development programme
• Farmed-in to a 50% working interest in the Marten Hill's Clearwater area and participated in two successful development wells which added c.120 boepd net production, with an option to drill seven additional wells on the acreage
• Participated in Crown Land Sales, bolstering acreage through a 15-year lease on seven sections (17.9 km²) of land in the emerging Cadotte area
• Acquired a 49.5% interest in South Simonette at a cost of CAD4.7 million, increasing i3's operated interest in this Montney oil play to 99% and allowing it to bring back on three wells to increase its corporate production by c.720 boepd and adding reserves of 4.9 MMboe at a before-tax NPV₁₀ valuation of US$30.9 million
• Elected to drill two oil-weighted wells with a partner at its Wapiti Elmworth acreage, expected to initially increase i3's production by c.175 boepd, with payback estimated in 1.3 years
• Acquired c.230 boepd of Wapiti production, conducted six reactivations to increase production to 471 boepd, significantly exceeding the expected 310 boepd
• Brought on stream a gas well located on the Company's Noel acreage in Northeast British Columbia at an average rate of 650 boepd, exceeding expectations by 30%

Post Period-End Highlights