TORONTO, February 10, 2026 — Leads & Copy —
International Petroleum Corporation (IPC) (TSX, Nasdaq Stockholm: IPCO) has announced its financial and operating results for the three months and year ended December 31, 2025, along with its 2026 budget, prioritizing the Blackrod Phase 1 project in Canada.
First steam injection at Blackrod Phase 1 occurred in December 2025, and the company anticipates first oil in Q3 2026, ahead of schedule. The 2026 capital and decommissioning expenditure budget is set at USD 122 million, with average daily production guidance between 44,000 and 47,000 barrels of oil equivalent (boe) per day. Year-end 2025 proved plus probable (2P) reserves are reported at 521 million boe (MMboe), and best estimate contingent resources (unrisked) are 1,224 MMboe.
IPC’s President and Chief Executive Officer, William Lundin, noted the company’s strong production performance in 2025, with average net production of 44,900 boepd for the year. He stated 2025 was the final major spend year for Blackrod Phase 1, with construction substantially complete and commissioning ongoing. Lundin also mentioned the company’s strong cash flows, even with weaker oil and gas prices, and the return of USD 100 million to shareholders through share buybacks in 2025.
As Blackrod Phase 1 transitions to start-up, 2026 is expected to be a turning point for IPC, with the asset projected to generate USD 1 to 2 billion in free cash flow from 2026 to 2030, assuming Brent prices between USD 65 and 85 per barrel. Lundin said the company is positioned to create long-term shareholder value through organic growth, stakeholder returns, and M&A.
Key highlights from 2025 include:
- Average net production of approximately 45,600 boepd for Q4 2025.
- Full year 2025 average net production of 44,900 boepd.
- Progress on Blackrod Phase 1, with first steam injection in Q4 2025 and forecast first oil in Q3 2026.
- Acquisition of lands adjacent to Blackrod, adding 64 MMboe of contingent resources.
- Four production infill wells and the final Pad L sustaining well pair brought online at Onion Lake Thermal, Canada, by Q3 2025.
- Completion of the drilling and workover program at the Bertam Field, Malaysia during Q3 2025.
- Purchase and cancellation of 7.7 million IPC common shares from December 2024 to early December 2025.
- Publication of IPC’s sixth annual Sustainability Report in Q3 2025.
Key financial highlights include:
- Operating costs per boe of USD 18.4 for Q4 2025 and USD 17.8 for the full year.
- Operating cash flow of MUSD 63 for Q4 and MUSD 259 for the full year 2025.
- Capital and decommissioning expenditures of MUSD 63 for Q4 and MUSD 344 for the full year 2025.
- Free cash flow of negative MUSD 153 for the full year 2025.
- Net debt of MUSD 484 as of December 31, 2025.
- Net result of negative MUSD 5 for Q4 2025 and positive MUSD 29 for the full year 2025.
- Amendment and extension of IPC’s MCAD 250 revolving credit facility in Q2 2025, extending the maturity to May 2027.
- Refinancing of IPC’s MUSD 450 unsecured bonds in Q4 2025, extending the maturity to October 2030.
Total 2P reserves as of December 31, 2025, were 521 MMboe, with a reserve life index of 31 years and a reserves replacement ratio of 277%. Proved developed producing (PDP) reserves increased by 28% from year-end 2024 to year-end 2025 to 125 MMboe, primarily due to Blackrod Phase 1. Contingent resources (best estimate, unrisked) as of December 31, 2025, were 1,224 MMboe.
Full year 2026 guidance includes average net production of 44,000 to 47,000 boepd, operating costs of USD 18 to 20 per boe, operating cash flow estimated at between MUSD 100 and 250 (assuming Brent USD 55 to 75 per barrel), capital and decommissioning expenditures of MUSD 122, and free cash flow ranging from approximately negative MUSD 70 to positive MUSD 85 (assuming Brent USD 55 to 75 per barrel).
Cumulative forecast free cash flow is approximately MUSD 1,000 to 2,000 over the period of 2026 to 2030 and approximately MUSD 700 to 1,600 over the period of 2031 to 2035 (assuming Brent USD 65 to 85 per barrel).
IPC has hedged 1,500 barrels per day of forecast 2026 oil production at around USD 67 per barrel for Dated Brent and 7,500 barrels per day of forecast 2026 oil production at around USD 61.5 per barrel for West Texas Intermediate (WTI). IPC has implemented WTI to WCS differential hedges for 5,000 barrels per day at USD -12.50 per barrel. Hedges for 15,000 GJ per day at CAD 2.73 per GJ for 2026 from April to October 2026 have been implemented.
Blackrod Phase 1 development targets 311 MMboe of 2P reserves, with first oil planned in Q3 2026. The Phase 1 development is planned for plateau production of 30,000 bopd which is expected by the end of 2027.
The 2P reserves attributable to Phase 1 has increased by 52 MMboe to 311 MMboe from year-end 2024 to year-end 2025. The contingent resources (best estimate, unrisked) attributed to the Blackrod asset realized a net increase of 117 MMboe to 1,142 MMboe.
During the period of December 5, 2024 to December 4, 2025, IPC purchased and cancelled an aggregate of approximately 7.7 million common shares under the 2024/2025 NCIB and certain other exemptions in Canada.
As at December 31, 2025 and February 10, 2026, IPC had a total of 112,155,527 common shares issued and outstanding and IPC holds no common shares in treasury.
During the fourth quarter and for the full year 2025, IPC recorded no material safety or environmental incidents.
As previously announced, IPC targeted a reduction of our net GHG emissions intensity by the end of 2025 to 50% of IPC’s 2019 baseline and IPC is on track to achieve this reduction for 2025 net GHG emissions intensity. IPC is committed to remain at end 2025 levels of 20 kg CO2/boe through to the end of 2028.
As at the end of December 2025, IPC’s 2P reserves are 521 MMboe. During 2025, IPC replaced 277% of the annual 2025 production. The reserve life index (RLI) as at December 31, 2025, is approximately 31 years.
The net present value (NPV) of IPC’s 2P reserves as at December 31, 2025 was around USD 2.7 billion. The net asset value (NAV) of IPC’s 2P reserves as at December 31, 2025 was around USD 2.2 billion.
In addition, IPC’s best estimate contingent resources (unrisked) as at December 31, 2025 are 1,224 MMboe, of which 1,142 MMboe relate to future potential phases of the Blackrod project.
IPC is pleased to announce its 2026 average net production guidance is 44,000 to 47,000 boepd. IPC forecasts operating costs for 2026 between USD 18 and 20 per boe.
IPC’s 2026 capital and decommissioning expenditure budget is USD 122 million, with USD 90 million forecast relating to Blackrod capital expenditure.
Further details regarding IPC’s proposed 2026 budget and operational guidance will be provided at IPC’s Capital Markets Day presentation to be held on February 10, 2026 at 15:00 CET. A copy of the Capital Markets Day presentation will be available on IPC’s website at www.international-petroleum.com.
International Petroleum Corp. (IPC) is an international oil and gas exploration and production company with assets in Canada, Malaysia and France. 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”.
Source: International Petroleum Corporation
