A Lundin Group Company International Petroleum Corp. Internationally Focused Upstream Company September 2019 NC00114 08.19
International Petroleum Corp. Corporate Strategy Deliver operational excellence Maintain financial resilience Maximize the value of our resource base Grow through M&A NC00133 p09 04.19 2
International Petroleum Corp. Q2 2019 Highlights Q2 production at 46,100 boepd Production Guidance Expect to be toward lower end of 46,000 to 50,000 boepd full year guidance 2019 forecast exit rate >50,000 boepd Q2 operating costs of 12.6 USD/boe; ahead of guidance Operating Costs (1) Full year guidance of 12.9 USD/boe retained Capital expenditure guidance retained at 188 MUSD Organic Growth Drilling operations ongoing in Canada, France & Malaysia Strong cash flow generation Operating Cash Flow (1) Full year 2019 OCF forecast of 163 to 330 MUSD 1H OCF of 160 MUSD, 48 % of high end guidance at 70 USD/bbl Brent (Brent avg 66 USD/bbl) Liquidity Capital programme remains fully funded from cash flow Resource Base (2) >2x increase to 288 MMboe; >1.3 billion boe 2P+2C; 16 yr RLI Shareholder Value (2) 37 % increase in NAV per share to 12.40 USD, IPC trading at 71 % discount Business Development Opportunistic approach to further acquisitions HSE No material incidents NCF00138 p02 07.19 (1) Non-IFRS measure, see MD&A (2) As at December 31, 2018, see Reader Advisory and MD&A 3
International Petroleum Corp. Track Record of Reserves Growth Proven track record of reserves increases through organic growth 103% reserves replacement ratio in 2018 (1) 174% in France Villeperdue reservoir performance upgrade and Villeperdue West project 109% in Malaysia Addition of 3 infill wells and reservoir performance upgrade Gas optimisation performance 98% in Canada - Suffield Year on year reserve increases in all countries Canada - Suffield Asset France Malaysia 45 25 120 40 +9% 100 - 20 35 +63% 30 80 +54% 15 MMboe MMboe MMboe 25 - - 60 20 10 15 40 10 5 20 5 0 0 0 NC00115 p22 01.19 2012 2016 2017 2018 2002 2016 2017 2018 2017 2018 Cumulative Production 1) See Reader Advisory and MD&A Reserves 4
International Petroleum Corp. Net Reserves and Contingent Resources (MMboe) Resource Growth 2P + 2C 1,380 >100% reserves replacement in 2018 More than doubled 2P reserves to 288 MMboe (1) 1,092 2C ~7x Increased reserves life index (RLI) from 11 to 16 years (1) More than 17x increase in Contingent Resource base (1) 2P + 2C 192 Net Reserves and >6x 288 2P 2C 63 Contingent Resources 2P 2P 129 29 >1.3 bn boe January 2017 January 2018 January 2019 NC00115 p06 08.19 (1) As at December 31, 2018. See Reader Advisory and MD&A 5
International Petroleum Corp. Production Growth Production (boepd) 50,000 boepd +10% Growth 46,100 boepd 46,000 boepd Expect full year production at lower end of 46,000 to 50,000 boepd range 34,400 boepd > 50,000 boepd exit rate forecast ~5x 10,300 boepd Canada-BlackPearl Canada-Suffield NC00115 p05 08.19 International 2017 2018 2019 Guidance 6
International Petroleum Corp. Organic Growth – Canada Wabasca DesMarais Manville Oil Sands Canada – Suffield 0 KM 100 Blackrod e Lake W inefred McMillian Slave Lake Lake Lake r e v i R Calling a Land acquisition c Lake s a b a Oil drilling and gas optimisation h t A P imrose Lake Athabasca Lake Swan Hills La Biche Lac La Biche Cold Lake Cold - On track/ahead of expectation Lake Manville Oil Sands N c h e t a t w St. Paul h S k s a a n R i v e r Onion Lake Candle Lake N2N EOR project on track for Q4 startup Edmonton Canada Lac Ste. Anne Turtle Lake Production optimisation Beaverhill Lloydminster Lake Prince Albert Pigeon Lake North Battleford Canada – Onion Lake / Other N t h Gull S a Alberta s k Lake Buffalo Saskatchewan a t c h e w r Lake a i v e n R Red Deer Saskatoon Onion Lake production optimisation Sullivan Lake - On track, slower ramp up due to cold weather N2N project Red Deer River h e w - Produced water skid installed & commissioning ongoing s k a t c a h S a n S t R i v e r Calgary Suffield Brooks Moose Jaw Blackrod pilot (1 well pair) Swift Current Drilling Medicine Hat - Commenced drilling July 2019 Conventional oil play openers Play openers: conventional oil drilling - 5 wells; opens up to 130 drilling locations Blackrod land acquisition in Q2 2019 - 243 MMboe CR (1) NC00143 p01 09.19 1) As at December 31, 2018, see Reader Advisory and MD&A 7
International Petroleum Corp. Organic Growth – France & Malaysia France Malaysia Execution of Vert-La-Gravelle Phase 1 3 infill wells on track for Q4 startup - Spudded Q2 2 appraisal wells completed - Results favour A20 over A14 location A20 Malaysia – Bertam France – Paris Basin Vert-La-Gravelle Villeperdue West 2019 Infill Programme NC00143 p02 09.19 0 500m Sézanne Sézanne 8
International Petroleum Corp. Operating Cash Flow (MUSD) (1) Low Case High Case WTI-WCS WTI-WCS differential differential -20 -15 332 70 USD/bbl 306 70 USD/bbl 279 (2) 265 258 60 USD/bbl 232 60 USD/bbl 189 50 USD/bbl H1 163 52% 160 MUSD 50 USD/bbl 48% 138 Q1 83 MUSD NCF00138 p12 07.19 2017 2018 2019 Guidance (3) Actual Actual 2) Including OCF related to Netherlands assets disposed in December 2018 3) At mid-point of 2019 production guidance 1) Non-IFRS measure, See MD&A 9
International Petroleum Corp. Net Asset Value (MUSD) (1) 2,314 With YE 2017 Pricing 111 PXX 2,037 166 IPCO 1,274 BlackPearl 71% discount to NAV 526 Suffield 582 1,151 543 514 International 2017 2018 2019 Net Debt (2) NAV (1) IPCO Market Cap (3) NCF00138 p04 07.19 1) As at December 31, 2018, see Reader Advisory and MD&A 2) Non-IFRS measure, see MD&A 3) Based on the price of IPC shares as at September 4 th , 2019, converted to USD (SEK 34.60 ; SEK/USD 9.78) 10
International Petroleum Corp. Net Asset Value Per Share vs Share Price (1) 14 14 NAV per share IPCO USD share price 01/01/19 13 13 USD 12.4 12 12 +37% 11 11 USD per share 10 01/01/18 10 USD 9.1 Additional gas 9 9 Commenced optimisation in ~71% +89% Suffield Canada approved discount 8 8 oil drilling to NAV BlackPearl 7 7 Development acquisition drilling starts at Infill drilling completed 6 Vert La Gravelle 6 Suffield acquisition Malaysia infills and starts in Malaysia 01/01/17 announced France 3D seismic USD 4.8 5 5 announced ~26% discount 4 to NAV BlackPearl Acquired additional Infill drilling acquisition 3 3 Listing Malaysian Suffield acquisition 243 MMbo starts in Malaysia announcement 17.5 MMboe CR Infill wells completed Blackrod CR’s 2 2 announced Production online France 3D seismic curtailment 25.5 M shares purchased completed 1 announced 1 and cancelled at 3.53 USD/share 0 0 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep NCF00138 p24 07.19 2017 2018 2019 1) As at December 31, 2018, see Reader Advisory and MD&A 11
Appendix 2019 Activity 12
2019 Production International Petroleum Corp. International, 19% France Malaysia 2019 Production Guidance Canada Gas, 38% Suffield a d a n a Gas C r e h t O Expect full year production towards lower end of 46,000 to 50,000 boepd range Onion Lake Thermal Suffield Oil Expect lower end of guidance range for Q3 Canada Oil, 43% Production growth targeted in all countries 2019 forecast exit Suffield gas optimisation and oil drilling rate > 50,000 boepd Onion Lake ramp up Production (boepd) 46-50,000 Malaysia infill wells 50,000 France Vert-La-Gravelle project 46,100 44,400 Exit rate of 50,000 boepd retained 40,000 34,400 30,000 ~5x >3x 20,000 10,300 10,000 Gas NC00133 p04 08.19 Oil WCS Oil Brent 0 Q1 Q2 Q3 Q4 2017 2018 2019 2019 Forecast 13
International Petroleum Corp. 2019 Capital Allocation (1) Capital Expenditure 2019 (net) France, 21% Canada, 45% 2019 Guidance: 188 MUSD Opportunity to ramp up or down depending on commodity pricing Strong economic returns and production additions at current pricing Over 99% of capital in operated assets Malaysia, 34% Canada – 85 MUSD Suffield Onion Lake Thermal France – 39 MUSD - Oil drilling - Facilities optimisation - Paris Basin - Gas recompletions - Sustaining well preparations - Vert-La-Gravelle execution Exploration: 10 MUSD - Villeperdue West preparations - Maintenance capital Additional budget: N2N + Blackrod acquisition 22 MUSD Malaysia – 56 MUSD - 3 Infill wells Exploration: 16 MUSD NC00115 p19 09.19 1) At mid point 2019 capital guidance 14
International Petroleum Corp. Operating Costs (1) 2019 full year operating costs forecast at 12.9 USD/boe Includes production optimisation, workovers and maintenance provisions Q2 operating costs below guidance at 12.6 USD/boe Net Unit Operating Costs 2019 Guidance (USD/boe) International, 29% Canada, 71% France 12.9 Malaysia Suffield Canada Other Onion Lake 2019 NC00133 p12 08.19 Guidance 1) Non-IFRS measure, see Reader Advisory and MD&A OPEX shown is net of self to self lease payments 15
Appendix Canada 16
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