Mr. Majid Shafiq reports

REDUCTION OF CAPITAL - UPDATE

i3 Energy PLC has provided the following update to its proposed reduction of capital.

Proposed capital reduction

At the annual general meeting held on June 30, 2023, the shareholders approved a resolution to allow the cancellation of the company's share premium account (the capital reduction). The proposed capital reduction is intended to increase retained earnings by an amount equal to the amount standing to the credit of the company's share premium account in order to create further distributable reserves in the company to facilitate the future payment of dividends (in cash or otherwise) to shareholders, where justified by the profits of the company, or to allow the redemption or buyback of the company's shares (or other distributions to shareholders).

The proposed cancellation of the company's share premium account is subject to the scrutiny of, and confirmation by, the High Court of England and Wales which will take due account of the protection of creditors. Subject to that confirmation and registration by the registrar of companies in England and Wales of the order of the High Court, the capital reduction is expected to take effect as per the timetable herein.

The board anticipates that the cancellation of the company's share premium account will result in the creation of further distributable reserves. However, this is subject to: (i) there being no materially negative change in the financial position or prospects of the company; and (ii) any provision that the court requires the company to make for the protection of its creditors (although the board does not expect any undertakings or similar measures to be required). This will give the company the maximum flexibility to consider the payment of dividends and otherwise return value to the shareholders, should the board consider it appropriate. It should, however, be noted that if the company is required to give undertakings to the High Court, this may delay the company's ability to pay dividends and otherwise return value to shareholders.

Following the implementation of the capital reduction, there will be no change in the nominal value of the company's shares or the number of shares in issue. The capital reduction in itself will not involve any distribution or repayment of share premium by the company and will not reduce the underlying net assets of the company.

The directors reserve the right to abandon or discontinue any application to the High Court for confirmation of the capital reduction if the directors believe that the terms required to obtain confirmation are unsatisfactory to the company or if, as the result of a material unforeseen event, the Directors consider that to continue with the capital reduction would be inappropriate or inadvisable.

Timetable of principal events

The expected timetable of principal events with respect to the capital reduction is as noted herein.

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.