Mr. Majid Shafiq reports

I3 ENERGY PLC ANNOUNCES 2024 CAPITAL BUDGET AND PRODUCTION GUIDANCE

i3 Energy PLC has released the company's 2024 capital budget and production guidance. The company will hold an investor webinar on Thursday 2 May 2024 at 12:00 pm BST including a Q&A session (details of which can be found below).

Highlights:

2024 Capital Budget

2024 Capital Budget of USD 50.9 million, forecasted to deliver 15 gross wells (10.5 net, 95 per cent net i3-operated) to be drilled across the company's diversified portfolio in Central Alberta, Simonette, and its northern Clearwater acreage.

Production Growth

Forecast exit 2024 production of 20,250 - 21,250 barrels of oil equivalent per day ("boepd"), representing a year-over-year increase of approximately 3 per cent from the prior year average exit rate (December 2023), or approximately 8 per cent from current levels, as the company expects to recommence drilling in June 2024 and positions for accelerated Montney development in 2025.

Cash Flow

USD 70 - 75 million of 2024 Net Operating Income ("NOI") and USD 55 - 60 million of EBITDA before hedging gains and losses, based on budget price assumptions of USD 82/barrel ("bbl") for WTI and CAD 2.25/Gigajoules ("GJ") for AECO natural gas.

Shareholder Returns

As part of i3's commitment to its total return model, subject to Board approval, the company is expected to return forecasted dividends of pounds sterling12.3 million (USD 15.7 million) in 2024, representing 0.2565 pence per share per quarter or 1.0260 pence per share for the year, which translates to a forward yield of 8.1 per cent based on the closing price of i3's ordinary shares of 12.66 pence on 23 April 2024.

Majid Shafiq, CEO of i3 Energy plc, commented:

"Following very successful initiatives in the first half of the year to increase our balance sheet strength and liquidity, i3 is extremely pleased to announce a substantial USD 51 million capital program for the remainder of the year, which will drill a diverse group of oil and gas wells across our portfolio in Canada. The majority of wells will be drilled in the second half of the year, with the high-volume Central Alberta gas wells producing into a forecast strong winter pricing environment and pad drilling of our exciting Montney acreage expected to commence early in Q1 2025. The program is designed to deliver production growth and support our dividend program, whilst maintaining liquidity and a conservative leverage position to maximise flexibility to deal with volatile market conditions and opportunities as they arise."

2024 Capital Program Highlights

Following the company's recent USD 24.8 million partial sale of its royalty assets, the elimination of all bank indebtedness and the establishment of a USD 55.6 million reserve-based credit facility, i3 Energy is pleased to announce a USD 50.9 million 2024 capital program along with its 2024 operational and financial guidance. This program will be fully funded from existing Company resources and is designed to balance growth, financial discipline, and a sustainable long term-dividend through a predictable development-focused program, all while positioning the company to commence its Simonette Montney pad development drilling in Q1 2025. The program is constrained to fit within the available time window of the second half of the year.

The 2024 budget currently reflects an estimated total capital investment of USD 50.9 million in Canada, of which approximately USD 41.1 million is allocated to drilling and development, with the remaining balance (USD 9.8 million) apportioned to maintenance capital, facilities, land, ESG and seismic initiatives. The 2024 budget reflects the natural limitations associated with the Canadian operating environment, including, but not limited to, access issues associated with seasonal weather conditions. As such, the 2024 program anticipates drilling operations will commence in late Q2, with continuous operations through to year-end.

i3's 2024 capital program will be 85 per cent weighted to the second half of the year with wells expected to be brought on production ahead of stronger forecasted winter gas pricing. Should it be the case that the forward strip forecast for gas prices deteriorates, the company is well positioned to both reallocate its drilling locations to more oil weighted development opportunities or capitalize on strategic accretive acquisitions as they are identified. Corporate guidance incorporates the drilling of 15 gross (10.5 net) wells with locations split between i3's key operating areas, comprising 11 gross (7.6 net) wells in Central Alberta, 2 gross (1.9 net) wells in Simonette and 2 gross (1.0 net) wells across the Clearwater fairway. The program is primarily focused on development opportunities, supplemented with targeted high-impact, large resource, oil-centred delineation.

The 2024 capital program is projected to deliver total average production of between 18,000 and 19,000 boepd (natural gas, oil & condensate, natural gas liquids and royalty interest production expected to average approximately 53 per cent, 22 per cent, 24 per cent and 1 per cent, respectively), with estimated peak production achieved in December. Based on timing, with no operated wells drilled or planned until June, the 2024 drilling program is forecast to deliver December exit rate production growth of 3 per cent when compared to the same period of 2023. Additionally, when adjusting for the company's highly accretive partial royalty disposition, announced on 17 April 2024, December exit production growth reflects 5 per cent on a year-over-year basis.

The company's 2024 Budget is designed to ensure a strong balance sheet and significant financial flexibility to support the company's income plus growth strategy and positions i3 to commence its Simonette Montney development in Q1 2025. The capital program will result in exit 2024 net debt of USD 23 - 26 million, representing a net debt to annualized December 2024 EBITDA before hedging, of approximately 30 per cent and net debt credit utilization of less than 45 per cent.

For its planning case, i3 has used commodity price assumptions of USD 82.00/bbl for WTI crude oil and CAD 2.25/GJ for AECO natural gas and expects to generate net operating income of approximately USD 70 - 75 million and EBITDA before hedging of USD 55 - 60 million for 2024.

Hedging

i3 continues to employ a defensive risk management strategy with current hedges in place to protect USD 43.4 million of net operating income in 2024, with current hedges in place to cover 31 per cent, 27 per cent, 26 per cent and 24 per cent of the company's projected Q1, Q2, Q3 and Q4 2024 future production volumes, respectively. i3's 2024 hedges are as follows:

UK Operations

The company continues to evaluate development options for the Serenity discovery in consultation with its partner and the North Sea Transition Authority. There is no capital budget associated with this work in 2024.

Environmental, Social and Governance ("ESG")

i3 is dedicated to conducting its operations responsibly and in accordance with industry best practices. The company's commitment to high ESG standards is central to maintaining our social licence to operate, creating value for all stakeholders, and ensuring long-term commercial success. i3 recognises the safety and well-being of our employees, local communities, and other key stakeholders as a priority, and considers climate change as having a material impact on our business.

i3 remains committed to environmental sustainability through consistent implementation of innovative technologies and operational strategies. The company proudly continues its utilization of an Alternative Fugitive Emissions Management Program to mitigate fugitive emissions, with the pilot project funded by the Alberta Methane Emissions Program and supported by the Alberta Energy Regulator. Furthermore, i3 is dedicated to expanding its renewable energy initiatives, with ongoing installations of solar pumps across various locations. The company actively explores opportunities to enhance process and operational efficiencies, particularly in optimizing compression facilities to minimize fuel consumption and emissions and, as part of its ongoing efforts, has initiated an analysis of electricity consumption to identify potential reductions in Scope 2 emissions. Most notably, i3 Energy is piloting innovative solutions, with the installation of a high to no-bleed, solar-powered instrument air skid at a strategic location, with plans for potential expansion to three additional sites in 2024.

The company will responsibly continue to meet its asset retirement obligations into 2024, as it plans to complete approximately 40 downhole abandonments, decommission an estimated 50 surface sites, and abandon approximately 15 pipelines. i3 has also allocated USD 0.7 million to progress reclamation and remediation efforts across its portfolio, with 11 reclamation certificates anticipated in 2024.

Return of Capital

As part of its total return model, the company remains committed to delivering a sustainable monthly dividend to complement its organic growth profile. Since initiating its dividend program in July 2021 i3 has paid total dividends of pounds sterling37.2 million (USD 47.4 million). Based on its recent elimination of all corporate bank indebtedness and forecasted 2024 guidance, i3 expects to deliver minimum total 2024 dividends of pounds sterling12.3 million (USD 15.7 million). Subject to Board approval, the 2024 forecasted dividend, representing 0.2565 pence per share per quarter or 1.026 pence per share for the year, translates to a forward yield of 8.1 per cent based on the closing price of i3's ordinary shares of 12.66 pence on 23 April 2024. Based on projected year-over-year production growth and anticipated dividend yield, the company expects to deliver a total Shareholder return of 11 per cent - 13 per cent in 2024.

Investor Presentation

Majid Shafiq, Ryan Heath and Jason Dranchuk will provide a live presentation relating to i3 Energy's 2024 Capital Budget via the Investor Meet Company platform on 2 May 2024 at 12:00pm BST.

The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event via your Investor Meet Company dashboard up until 9am the day before the meeting or at any time during the live presentation.

Investors can sign up to Investor Meet Company for free and add to meet i3 Energy plc via:

https://www.investormeetcompany.com/i3-energy-plc/register-investor

Investors who already follow I3 ENERGY PLC on the Investor Meet Company platform will automatically be invited.

Additionally, i3 is pleased to announce that an updated corporate presentation will be available on the company's website https://i3.energy/ coinciding with the Investor Meet Company live presentation.

Qualified Person's Statement

In accordance with the AIM Note for Mining and Oil and Gas Companies, i3 discloses that Majid 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. Majid Shafiq consents to the inclusion of the information in the form and context in which it appears.

About i3 Energy

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.

i3 Energy is listed on the AIM market of the London Stock Exchange under the symbol I3E and on the Toronto Stock Exchange under the symbol ITE. For further information on i3 Energy please visit https://i3.energy.

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