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 months ended March
31, 2024.
William Lundin, IPC's President and Chief
Executive Officer, comments: “We are pleased to announce another
strong quarter of production and operational performance, which was
combined with favourable commodity prices. IPC achieved an average
net daily production during the quarter of 48,800 barrels of oil
equivalent per day (boepd). Our financial results during the
quarter are in line with the 2024 guidance announced at our Capital
Markets Day in February as we continue to excel operationally
across our operations in Canada, Malaysia and France. At the same
time, we also continued with purchases of IPC common shares under
the normal course issuer bid, having completed approximately
one-third of the current 2023/2024 program between December 2023
and March 2024. In addition, we are progressing the development of
Phase 1 of the Blackrod project in Canada according to plan, which
continues to forecast first oil in late 2026.”
Q1 2024 Business Highlights
- Average net production of
approximately 48,800 boepd for the first quarter of 2024 was above
the high end of the guidance range for the period (51% heavy crude
oil, 16% light and medium crude oil and 33% natural gas).(1)
- Progressing development activities
on Phase 1 of the Blackrod project which remains on schedule and on
budget.
- Successfully drilled, completed and
tied-in three out of five 2024 budgeted Ellerslie wells within the
Suffield area.
- 1.6 million IPC common shares
purchased and cancelled during Q1 2024 under IPC’s normal course
issuer bid (NCIB) and continuing with target to complete the full
2023/2024 NCIB this year.
Q1 2024 Financial
Highlights
- Operating costs per boe of USD 17.1
for Q1 2024, below guidance.(3)
- Operating cash flow (OCF)
generation of MUSD 89 for Q1 2024, ahead of the guidance
range.(3)
- Capital and decommissioning
expenditures of MUSD 125 for Q1 2024, in line with guidance.
- Free cash flow (FCF) generation for
Q1 2024 amounted to MUSD -43 (MUSD 53 pre-Blackrod Phase 1 project
funding).(3)
- Gross cash of MUSD 397 and net debt
of MUSD 61 as at March 31, 2024.(3)
- Net result of MUSD 34 for Q1
2024.
Reserves and Resources
- Total 2P reserves as at December
31, 2023 of 468 MMboe, with a reserves life index (RLI) of 27
years.(1)(2)
- Contingent resources (best
estimate, unrisked) as at December 31, 2023 of 1,145
MMboe.(1)(2)
2024 Annual Guidance
- Full year 2024 average net
production guidance range maintained at 46,000 to 48,000
boepd.(1)
- Full year 2024 operating costs
guidance range maintained at USD 18 to 19 per boe.(3)
- Full year 2024 OCF guidance
estimated at between MUSD 323 and 363 (assuming Brent USD 70 to 90
per boe for the remainder of 2024).(3)
- Full year 2024 capital and
decommissioning expenditures guidance forecast maintained at MUSD
437.
- Full year 2024 FCF guidance
estimated at between MUSD -154 and -114 (assuming Brent USD 70 to
90 per boe for the remainder of 2024), after taking into account
MUSD 362 of forecast full year 2024 capital expenditures relating
to the continued development of Phase 1 of the Blackrod project and
the additional oil hedges executed in March and April 2024.(3)
|
Three months ended March 31 |
USD
Thousands |
2024 |
2023 |
Revenue |
206,419 |
|
192,516 |
|
Gross profit |
55,184 |
|
64,383 |
|
Net result |
33,719 |
|
39,563 |
|
Operating cash flow(3) |
89,301 |
|
75,900 |
|
Free cash flow(3) |
(43,311 |
) |
16,259 |
|
EBITDA(3) |
87,020 |
|
76,079 |
|
Net
cash/(debt)(3) |
(60,572 |
) |
66,956 |
|
|
|
|
|
|
During the first quarter of 2024, oil prices
remained strong, with Brent prices averaging USD 83 per barrel.
Following the quarter, Brent prices increased to spot rates over
USD 91 per barrel in April 2024. Increased global crude demand
revisions in combination with downward supply adjustments largely
influenced by extended OPEC+ curtailments and rising geopolitical
tension in the Middle East are some of the key factors that have
lead to higher oil prices. Global crude inventories were largely
unchanged in the first quarter and are below the 5 year average.
Current consensus is that the oil market will be in a deficit for
the remainder of 2024.
IPC has taken advantage of the favourable pricing
outlook by increasing our benchmark hedged volumes to around 50% of
our oil production at approximately USD 80.3 and USD 85.5 per
barrel for West Texas Intermediate (WTI) and Dated Brent,
respectively, for the remainder of 2024. Despite a favourable
outlook for crude prices, 2024 is an election year in the United
States and with recent inflation data impacting rate cut decisions,
IPC took prudent action to protect the business in a downside
pricing scenario given the record investment year for the
Corporation.
In Canada, first quarter 2024 WTI to Western
Canadian Select (WCS) crude price differentials averaged around USD
19 per barrel, with differentials decreasing to around USD 12 per
barrel in April 2024. The Trans-Mountain (TMX) pipeline began
commercial operations in May 2024 which should benefit future
WTI/WCS differentials. Another positive catalyst for WCS is the
reduced Mexican heavy oil exports to the US. IPC has hedged the
WTI/WCS differential for approximately 70% of our Canadian crude
production at USD 15 per barrel for 2024.
Gas markets in the first quarter of 2024 were
relatively weak, given the warmer than average weather conditions
and high gas storage levels in North America. The average AECO gas
price was CAD 2.50 per Mcf for the first quarter of 2024.
First Quarter 2024 Highlights and Full
Year 2024 Guidance
During the first quarter of 2024, our assets
delivered average net production of 48,800 boepd, ahead of guidance
for the quarter. High uptime performance was achieved across all
our assets, including resumed production in Malaysia following the
completion of the previously announced well maintenance work. IPC
also benefited from short cycle investment activities, mainly
within Southern Alberta assets in Canada where three out of five
2024 budgeted Ellerslie wells have been successfully drilled. We
maintain the full year 2024 average net production guidance range
of 46,000 to 48,000 boepd.(1)
Our operating costs per boe for the first
quarter of 2024 was USD 17.1, below guidance. Full year 2024
operating costs per boe guidance of USD 18.0 to 19.0 per boe
remains unchanged.(3)
Operating cash flow (OCF) generation for the
first quarter of 2024 was MUSD 89. Full year 2024 OCF guidance is
tightened to MUSD 323 to 363 (assuming Brent USD 70 to 90 per boe
for the remainder of 2024).(3)
Capital and decommissioning expenditure for the
first quarter of 2024 was MUSD 125 in line with guidance. Full year
2024 capital and decommissioning expenditure of MUSD 437 is
unchanged.
Free cash flow (FCF) generation was MUSD -43
(MUSD 53 pre-Blackrod Phase 1 project funding) during the first
quarter of 2024. Full year 2024 FCF guidance is tightened to MUSD
-154 to -114 (assuming Brent USD 70 to 90 per boe for the remainder
of 2024) after taking into account MUSD 362 of forecast full year
2024 capital expenditures relating to the continued development of
Phase 1 of the Blackrod project and the additional oil hedges
executed in March and April 2024.(3)
As at March 31, 2024, IPC’s net debt position
was MUSD 61, from a net cash position of MUSD 58 as at December 31,
2023, largely driven by the funding of forecast capital
expenditures and the continuing share repurchase program (NCIB).(3)
Gross cash on the balance sheet as at March 31, 2024 amounts to
MUSD 397 providing a significant war chest to pursue our three
strategic pillars of organic growth, returning value to
stakeholders, and pursuing value adding M&A.
Blackrod Project
In Q1 2024, IPC continued to advance the
development of Phase 1 of the Blackrod project. Development capital
expenditure to first oil is estimated at MUSD 850. First oil of the
Phase 1 development is estimated to be in late 2026, with forecast
net production of 30,000 bopd by 2028. IPC forecasts development
capital expenditure in 2024 for the Blackrod Phase 1 project of
MUSD 362, of which MUSD 96 was invested in Q1 2024.(1)
Project activities for the multi-year Blackrod
Phase 1 development have progressed in line with expectations. As
at the end of Q1 2024, fabrication and installation have commenced,
site civil and commercial road expansion works continue to advance,
drilling is progressing, and third-party pipeline commercial
agreements are moving forward according to plan. IPC intends to
fund the remaining Blackrod Phase 1 development costs with forecast
cash flow generated by its operations and cash on hand.(3)
Stakeholder Returns: Normal Course
Issuer Bid
In Q4 2023, IPC announced the renewal of the
NCIB, with the ability to repurchase up to approximately 8.3
million common shares over the period of December 5, 2023 to
December 4, 2024. Under the 2023/2024 NCIB, IPC repurchased and
cancelled approximately 1.2 million common shares in December 2023
and a further 1.6 million common shares during Q1 2024. The average
price of common shares purchased under the 2023/2024 NCIB during Q1
2024 was SEK 115 / CAD 15 per share.
As at March 31, 2024, IPC had a total of
125,438,160 common shares issued and outstanding and IPC held no
common shares in treasury. As at April 30, 2024, IPC had a total of
125,151,742 common shares issued and outstanding and IPC held no
common shares in treasury.
Notwithstanding the record level of capital
investment forecast for 2024, IPC confirms its intention to
continue to purchase and cancel common shares under the 2023/2024
NCIB to the remaining limit as at April 1, 2024 of 5.5 million
common shares by early December 2024. This would result in the
cancellation of 6.5% of shares outstanding as at the beginning of
December 2023. IPC continues to believe that reducing the number of
shares outstanding while in parallel investing in material
production growth at the Blackrod project will prove to be a
winning formula for our stakeholders.
Environmental, Social and Governance
(ESG) Performance
During the first quarter of 2024, 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. During the first quarter of 2024, IPC announced the
commitment to remain at 2025 levels of 20 kg CO2/boe through to the
end of 2028.
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, 2023 (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 NPV, are described in the AIF. |
(3) |
Non-IFRS measures, see “Non-IFRS Measures” below and in the
MD&A. |
|
|
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 SVP Corporate Planning and Investor Relations
rebecca.gordon@international-petroleum.com Tel: +41 22 595 10
50 |
Or |
Robert Eriksson Media Manager reriksson@rive6.ch 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 May 7, 2024.
The Corporation's unaudited interim condensed consolidated
financial statements (Financial Statements) and management's
discussion and analysis (MD&A) for the three months ended March
31, 2024 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:
- 2024 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 continue to
react to recent events and 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 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 prices and net present value;
- Future development potential of the Suffield, Brooks, Ferguson
and Mooney operations, including the timing and success of future
oil and gas drilling and optimization programs;
- Current and future operations and production performance at
Onion Lake Thermal;
- 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;
- The ability of IPC to implement further shareholder
distributions in addition to 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;
- 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 maintain operations, production and business
in light of current and any future pandemics and the restrictions
and disruptions related thereto, including risks related to
production delays and interruptions, changes in laws and
regulations and reliance on third-party operators and
infrastructure;
- 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, 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.
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; and
changes in legislation, including but not limited to tax laws,
royalties, environmental and abandonment regulations.
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” therein), the Corporation’s
Annual Information Form (AIF) for the year ended December 31, 2023,
(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 FCF generation is based on IPC’s
current business plans over the periods of 2024 to 2028 and 2029 to
2033. Assumptions include average net production of approximately
55 Mboepd over the period of 2024 to 2028, average net production
of approximately 65 Mboepd over the period of 2029 to 2033, average
Brent oil prices of USD 75 to 95 per boe 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 MCR. 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 March 31 |
USD Thousands |
2024 |
|
2023 |
|
Revenue |
206,419 |
|
192,516 |
|
Production costs |
(115,745 |
) |
(117,527 |
) |
Current tax |
(1,373 |
) |
(3,991 |
) |
Operating cash flow |
89,301 |
|
70,998 |
|
|
|
|
|
|
The operating cash flow for the three months
ended March 31, 2023 including the operating cash flow contribution
of the Brooks assets acquisition from the effective date of January
1, 2023 to the completion date of March 3, 2023 amounted to USD
75,900 thousand.
Free cash flow The following table sets out how
free cash flow is calculated from figures shown in the Financial
Statements:
|
Three months ended March 31 |
USD Thousands |
2024 |
|
2023 |
|
Operating cash flow - see above |
89,301 |
|
70,998 |
|
Capital expenditures |
(125,256 |
) |
(48,238 |
) |
Abandonment and farm-in expenditures1 |
(122 |
) |
(1,211 |
) |
General, administration and depreciation expenses before
depreciation2 |
(3,653 |
) |
(3,811 |
) |
Cash financial items3 |
(3,581 |
) |
(648 |
) |
Free cash flow |
(43,311 |
) |
17,090 |
|
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
The free cash flow for the three months ended
March 31, 2023 including the free cash flow contribution of the
Brooks assets acquisition from the effective date of January 1,
2023 to the completion date of March 3, 2023 amounted to USD 16,259
thousand.
EBITDA The following table sets out the
reconciliation from net result from the consolidated statement of
operations to EBITDA:
|
Three months ended March 31 |
USD Thousands |
2024 |
2023 |
Net result |
33,719 |
39,563 |
Net financial items |
9,770 |
5,015 |
Income tax |
7,746 |
15,611 |
Depletion and decommissioning costs |
33,153 |
6,439 |
Depreciation of other tangible fixed assets |
2,262 |
2,558 |
Exploration and business development costs |
75 |
1,609 |
Depreciation included in general, administration and depreciation
expenses 1 |
295 |
383 |
EBITDA |
87,020 |
71,178 |
1 Item is not shown in the Financial
Statements
The EBITDA for the three months ended March 31,
2023 including the EBITDA contribution of the Brooks assets
acquisition from the effective date of January 1, 2023 to the
completion date of March 3, 2023 amounted to USD 76,079
thousand.
Operating costs The following table sets out how
operating costs is calculated:
|
Three months ended March 31 |
USD Thousands |
2024 |
|
2023 |
|
Production costs |
115,745 |
|
117,527 |
|
Cost of blending |
(45,206 |
) |
(47,817 |
) |
Change in inventory position |
5,277 |
|
5,735 |
|
Operating costs |
75,816 |
|
75,445 |
|
|
|
|
|
|
The operating costs for the three months ended
March 31, 2023 including the operating costs contribution of the
Brooks assets acquisition from the effective date of January 1,
2023 to the completion date of March 3, 2023 amounted to USD 82,246
thousand.
Net cash/(debt) The following table sets out how
net cash/(debt) is calculated:
USD Thousands |
March 31, 2024 |
December 31, 2023 |
Bank loans |
(7,962 |
) |
(9,031 |
) |
Bonds1 |
(450,000 |
) |
(450,000 |
) |
Cash and cash equivalents |
397,390 |
|
517,074 |
|
Net
cash/(debt) |
(60,572 |
) |
58,043 |
|
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, 2023, 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, 2023 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,
2023, 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, 2023 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, 2023 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 468 MMboe as at December 31, 2023 by
the mid-point of the 2024 CMD production guidance of 46,000 to
48,000 boepd. Reserves replacement ratio is based on 2P reserves of
471.5 MMboe as at December 31, 2022 (not including 2P reserves
related to the Brooks assets acquired in the Cor4 acquisition),
sales production during 2023 of 17.7 MMboe, net additions to 2P
reserves during 2023 of 16.0 MMboe, other revisions downward of 2.2
MMboe, and 2P reserves of 468 MMboe as at December 31, 2023.
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:
|
Heavy Crude Oil(Mbopd) |
Light and Medium Crude Oil (Mbopd) |
Conventional Natural Gas (per day) |
Total(Mboepd) |
Three months ended |
|
|
|
|
March 31, 2024 |
24.9 |
7.9 |
96.0 MMcf (16.0 Mboe) |
48.8 |
March 31, 2023 |
26.6 |
9.5 |
99.9 MMcf (16.7 Mboe) |
52.8 |
Year ended |
|
|
|
|
December 31, 2023 |
25.8 |
8.1 |
102.8 MMcf (17.1 Mboe) |
51.1 |
|
|
|
|
|
This press release also makes reference to IPC’s
forecast total average daily production of 46,000 to 48,000 boepd
for 2024. IPC estimates that approximately 50% of that production
will be comprised of heavy oil, approximately 16% will be comprised
of light and medium crude oil and approximately 34% 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.
International Petroleum (TSX:IPCO)
Historical Stock Chart
From Aug 2024 to Sep 2024
International Petroleum (TSX:IPCO)
Historical Stock Chart
From Sep 2023 to Sep 2024