Årsredovisning 2025

Management’s Discussion and Analysis
For the three months and year ended December 31, 2025
Material Accounting Policies and Estimates
In connection with the preparation of the Corporation’s consolidated financial statements, management has made assumptions 
and estimates about future events and applied judgments that affect the reported values of assets, liabilities, revenues, expenses 
and related disclosures. These assumptions, estimates and judgments are based on historical experience, current trends and other 
factors that they believe to be relevant at the time the financial statements are prepared. The management reviews the accounting 
policies, assumptions, estimates and judgments to ensure that the financial statements are presented fairly in accordance with 
IFRS. However, because future events and their effects cannot be determined with certainty, actual results could differ from these 
assumptions and estimates, and such differences could be material.
Management believes the following critical accounting policies affect the more significant judgments and estimates used in the 
preparation of the consolidated financial statements:
Oil and gas reserves, impairment and asset retirement obligations
The accounting for oil and gas assets requires significant estimates and judgements, particularly in relation to reserves, impairment 
and asset retirement obligations. Estimates of proved and probable oil and gas reserves, prepared using standard recognized 
evaluation techniques and reviewed by independent qualified reserves auditors, are fundamental to impairment testing, 
depletion calculations under the unit of production method, and the timing and measurement of asset retirement obligations. 
These estimates are based on management’s assumptions regarding expected production volumes, future oil and gas prices, 
development and production costs, and economic factors as such oil price and inflation.
Impairment tests are performed when there are indicators of impairment. Key assumptions in the impairment models include oil 
and gas reserve estimates, forward price curves, long-term cost assumptions and the discount rate, all of which are subject to 
change as new information becomes available or economic conditions evolve.
Provisions for asset retirement obligations are based on estimates of future decommissioning and restoration costs, reflecting 
current legal and constructive requirements, available technology and prevailing price levels. Actual cash outflows may differ from 
estimates due to changes in legislation, technical requirements or cost levels, and therefore these provisions are reviewed on a 
regular basis.
Deferred income tax assets
The Group accounts for differences that arise between the carrying amount of assets and liabilities and their tax bases in 
accordance with IAS 12, Income Taxes, which requires deferred income tax assets only to be recognized to the extent that 
is probable that future taxable profits will be available against which the temporary differences can be utilized. Management 
estimates future taxable profits based on the financial models used to value its oil and gas properties. Any change to the estimates 
and assumptions used for the key operational and financial variables used within the business models could affect the amount of 
deferred income tax assets recognized.
The effects of changes in estimates do not give rise to prior year adjustments and are treated prospectively over the estimated 
remaining commercial reserves of each field. While the Group uses its best estimates and judgement, actual results could differ 
from these estimates.
Transactions with Related Parties 
The Group recognizes the following related parties: associated companies, jointly controlled entities, key management personnel 
and members of their close family or other parties that are partly, directly or indirectly controlled by key management personnel or 
of its family or of any individual that controls, or has joint control or significant influence over the entity.
All transactions with related parties are in the normal course of business and are made on the same terms and conditions as with 
parties at arm’s length.
During the year 2025, the Group has not entered into material transactions with related parties.
Financial Risk Management 
As an international oil and gas exploration and production company, IPC is exposed to financial risks such as interest rate risk, 
currency risk, credit risk, liquidity risks as well as the risk related to the fluctuation in oil and gas prices. The Group seeks to control 
these risks through sound management practice and the use of internationally accepted financial instruments, such as oil and gas, 
condensate and electricity price, interest rate or foreign exchange hedges as the case may be. Financial instruments will be solely 
used for the purpose of managing risks in the business. As at December 31, 2025, the Group had entered into oil, gas, electricity 
and currency hedges – see below.
Management believes that the cash resources, other current assets and cash flow from operations are sufficient to finance the 
Group’s operations and capital expenditures program over the next year.
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Management’s Discussion and Analysis
For the three months and year ended December 31, 2025
Capital Management
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern and to meet its 
committed financial liabilities and work program requirements in order to create shareholder value. The Group may put in place 
new bonds or credit facilities, repay debt, or pursue other such restructuring activities as appropriate.
Management of the Corporation will continuously monitor and manage the Group’s capital, liquidity and net debt position in order 
to assess the requirement for changes to the capital structure to meet the objectives and to maintain flexibility.
Price of Oil and Gas
Prices of oil and gas are affected by the normal economic drivers of supply and demand as well as by financial investors and market 
uncertainty. Factors that influence these prices include operational decisions, prices of competing fuels, natural disasters, economic 
conditions, transportation constraints, political instability or conflicts or actions by major oil exporting countries. Price fluctuations will 
affect the Group’s financial position.
Based on analysis of the circumstances, management assesses the benefits of forward hedging monthly sales contracts for the 
purpose of protecting cash flow. If management believes that a hedging contract will appropriately help manage cash flow then it may 
choose to enter into a commodity price hedge. The Group does not currently have any covenants under its current financing facilities 
to hedge future production.
The Group had oil price sale financial hedges outstanding as at December 31, 2025, which are summarized as follows:
Period Volume (barrels per day) Type Average Pricing 
January 1, 2026 - December 31, 2026 5,000 WTI/WCS Differential USD -12.50/bbl
The Group had gas price sale financial hedges outstanding as at December 31, 2025, which are summarized as follows:
Period Volume (Gigajoules (GJ) per
day)) Type Average Pricing 
April 1, 2026 - October 31, 2026 15,000 AECO Gas Swap CAD 2.73/GJ
The Group had electricity financial hedges outstanding as at December 31, 2025, which are summarized as follows:
Period Volume (MWh) Type Average Pricing 
January 1, 2026 - September 30, 2040 3 AESO CAD 75.00/MWh
The above hedges are treated as effective and changes to the fair value are reflected in other comprehensive income. The hedges had 
a positive fair value of USD 2,507 thousand as at December 31, 2025.
In January 2026, the Group entered into the following oil price sale financial hedges:
Period Volume (barrels per day) Type Average Pricing 
February 1, 2026 - June 30, 2026 5,000 WTI Sale Swap USD 60.04/bbl
February 1, 2026 - June 30, 2026 2,500 WTI Sale Swap USD 64.50/bbl
February 1, 2026 - June 30, 2026 1,500 Brent Sale Swap USD 66.67/bbl
Currency Risk
The Group’s policy on currency rate hedging is, in the case of currency exposure, to consider fixing the rate of exchange. The Group 
will take into account the currency exposure, current rates of exchange and market expectations in comparison to historic trends and 
volatility in making the decision to hedge.
Interest Rate Risk
Interest rate risk is the risk to earnings due to uncertain future interest rates on borrowings. The Group will take into account the 
level of external debt, current interest rates and market expectations in comparison to historic trends and volatility in making the 
decision to hedge. There are currently no interest rate hedges.
Credit Risk
The Group may be exposed to third party credit risk through contractual arrangements with counterparties who buy the Group’s 
hydrocarbon products. The Group’s policy is to limit credit risk by only entering into oil and gas sales agreements with reputable 
and creditworthy oil and gas and trading companies. Where it is determined that there is a credit risk for oil and gas sales, the 
Group’s policy is to require credit enhancement from the purchaser.
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Management’s Discussion and Analysis
For the three months and year ended December 31, 2025
The Group’s policy on joint venture parties is to rely on the provisions of the underlying joint operating agreements to take 
possession of the licence or the joint venture partner’s share of production for non-payment of cash calls or other amounts due. In 
addition, cash is to be held and transacted only through major banks.
RISK FACTORS 
IPC is engaged in the exploration, development and production of oil and gas and its operations are subject to various risks and 
uncertainties which include, but are not limited to, those listed below. The risks and uncertainties below are not the only ones 
that the Group faces. Additional risks and uncertainties not presently known to the Group or that the Group currently considers 
immaterial may also impair the business and operations of the Group and cause the price of IPC’s common shares (“Common 
Shares”) to decline. If any of the following risks actually occur, the Group’s business may be adversely affected, and the Group’s 
financial condition and results of operations may suffer significantly. 
See also “Cautionary Statement Regarding Forward-Looking Information” and “Reserves and Resources Advisory” below.
Non Financial Risks
Exploration, Development and Production Risks: Oil and gas operations involve many risks that even a combination of 
experience, knowledge and careful evaluation may not be able to overcome. The long-term commercial success of the Group 
depends on its ability to find, acquire, develop and commercially produce oil and gas reserves. Without the continual addition 
of new reserves, any existing reserves associated with the Group’s oil and gas assets at any particular time, and the production 
therefrom, will decline over time as such existing reserves are exploited. There is a risk that additional commercial quantities of 
oil and gas will not be discovered or acquired by the Group. Production delays and declines from normal field operating conditions 
cannot be eliminated and can be expected to adversely affect revenue and cash flow levels to varying degrees. 
Future oil and gas development may involve unprofitable efforts, not only from dry wells, but also from wells that are productive 
but do not produce sufficient petroleum substances to return a profit after drilling, operating and other costs. Completion of a well 
does not assure a profit on the investment or recovery of drilling, completion and operating costs. In addition, drilling hazards or 
environmental damage could greatly increase the cost of operations, and various field operating conditions may adversely affect 
the production from successful wells. These conditions include delays in obtaining governmental approvals or consents, shut-ins 
of connected wells resulting from extreme weather conditions, insufficient storage or transportation capacity or other geological 
and mechanical conditions. While diligent well supervision, effective maintenance operations and the development of EOR 
technologies can contribute to maximizing production rates over time, it is not possible to eliminate production delays and declines 
from normal field operating conditions cannot be eliminated and can be expected to adversely affect revenue and cash flow levels 
to varying degrees. 
IPC uses multi-well pad drilling in certain situations where practicable. With multi-well pad drilling, problems affecting a single 
well could adversely affect production from all other wells on the pad. As a result, multi-well pad drilling can cause delays in the 
scheduled commencement of production, or interruption in ongoing production. These delays or interruptions may cause volatility 
in operating results.
Oil and gas exploration, development and production operations are subject to all the risks and hazards typically associated with 
such operations, including hazards such as fire, explosion, blowouts, cratering, hydrocarbon releases and spills, each of which 
could result in substantial damage to oil and gas wells, production facilities, other property and the environment or personal injury. 
In accordance with industry practice, the Group will not fully insure against all of these risks, nor are all such risks insurable. The 
Group maintains liability insurance in an amount that it considers consistent with industry practice. Due to the nature of these 
risks, however, there is a risk that such liabilities could exceed policy limits, in which event the Group could incur significant costs.
Volatility in Oil and Gas Commodity Prices and Price Differentials and Tariffs: The demand for energy, including oil and gas, 
is generally linked to broad-based economic activities. If there was a slowdown in economic growth, an economic downturn or 
recession,  or other adverse economic or political developments in the United States, Europe, Asia or elsewhere, there could be 
a significant adverse effect on global financial markets and commodity prices. In addition, current and potential future hostilities 
in the Middle East, Ukraine, South America and elsewhere and the occurrence or threat of terrorist attacks in the United States or 
other countries could adversely affect the global economy.
The marketability and price of oil and gas that may be acquired or discovered by the Corporation is and will continue to be 
affected by numerous factors beyond its control. The Corporation’s ability to market its oil and gas may depend upon its ability to 
access space on pipelines that deliver oil and gas to commercial markets. The Corporation may also be affected by deliverability 
uncertainties related to the proximity of its reserves to pipelines and processing and storage facilities, the capacity of such 
pipelines and facilities, and operational problems affecting such pipelines and facilities as well as extensive government regulation 
relating to price, taxes, royalties, land tenure, allowable production, the export of oil and gas and many other aspects of the oil and 
gas business.
Prices for oil and gas are subject to large fluctuations in response to relatively minor changes in the supply of and demand for 
oil and gas, market uncertainty and a variety of additional factors beyond the control of the Corporation. These factors include 
economic conditions in Europe, Asia, the United States, Canada and elsewhere, the actions of OPEC and OPEC+, strategic 
petroleum reserve management and imposition of tariffs by the United States, current and potential future conflicts in the Middle 
East, Ukraine, South America and elsewhere, the impact of pandemics, governmental regulation, political instability in the Middle 
East and elsewhere, the foreign supply of oil and gas, risks of supply disruption, the price of foreign imports and the availability of 
alternative fuel sources.
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Management’s Discussion and Analysis
For the three months and year ended December 31, 2025
In 2025, the United States imposed tariffs on goods exported out of Canada into the United States, other than goods from both 
Canada and Mexico that are covered by the United States-Mexico-Canada Agreement. These tariffs, and any changes to these 
tariffs or imposition of any new tariffs, taxes or import or export restrictions or prohibitions, could have a material adverse effect 
on the Canadian oil and natural gas industry and the Corporation. Furthermore, there is a risk that the tariffs imposed by the U.S. 
on other countries could have a material adverse effect on the global economy, and by extension the Canadian oil and natural gas 
industry and the Corporation. It is uncertain how long the current tariffs will remain in place and what the impact will be on the 
prices of Canadian oil and gas and on the financial condition of the Corporation. The introduction of new trade policies or barriers, 
including the imposition of new tariffs, duties or other trade restrictions on Canadian hydrocarbon products exported to the U.S., 
or the imposition of new or retaliatory tariffs, duties or trade restrictions on hydrocarbon products imported into Canada from the 
U.S., could result in a decrease in, or increase the volatility of, commodity prices and/or price differentials which could, in turn, 
reduce the demand for oil and natural gas and have an adverse effect on the Corporation’s business, financial condition and results 
of operations.
Oil and gas prices have fluctuated widely during recent years and may continue to be volatile in the future. Any substantial and 
extended decline in the price of oil and gas would have an adverse effect on the carrying value of the reserves and resources, 
borrowing capacity, revenues, profitability and cash flows associated with the Group’s assets and may have a material adverse 
effect on the business, financial condition, results of operations and prospects associated with the Group’s assets.
The Group’s financial performance also depends on revenues from the sale of commodities which differ in quality and location 
from underlying commodity prices quoted on financial exchanges. Of particular importance are the price differentials in Canada 
between the Group’s heavy crude oil (in particular the heavy crude oil differential) and quoted market prices. The market price for 
heavy crude oil and bitumen in Canada is generally lower than market prices for light oil, due principally to the higher costs
associated with refining a barrel of heavy crude oil and higher transportation costs (diluent is required to be purchased and blended 
with heavy crude oil to transport on most pipelines). Heavy crude oil differentials are also influenced by other factors such as 
capacity and interruptions, refining demand and the quality of the oil produced, all of which are beyond the Group’s control. It is 
difficult to predict future price differentials and any increase in heavy crude oil differentials could have an adverse effect on the 
Group’s business, financial condition, results of operations and cash flows.
In addition, there has not been, at times, sufficient pipeline capacity to export all Canadian crude oil and the availability of 
alternative transport capacity is more expensive and variable, therefore, the price for Canadian crude oil is very sensitive to pipeline 
and refinery outages. This has resulted in significantly lower prices being realized by Canadian producers compared with the WTI 
price and the Brent price for crude oil. In addition, the pro-rationing of capacity on inter-provincial pipeline systems may affect 
the ability to export oil and gas from Canada. There can be no certainty that current investment in pipelines will provide sufficient 
long-term export capacity or that currently operating systems will remain in service. There is also no certainty that short- term 
operational constraints on pipeline systems, arising from pipeline interruption, refinery outages and/or increased supply of crude 
oil, will not occur.
In order to transport crude oil production in Canada to sales markets, the Group is required to meet certain pipeline specifications. 
Heavy crude oil and bitumen is usually blended with diluent to increase its flow characteristics. The cost of diluent is generally 
correlated to crude oil prices. A shortfall in the supply of diluent may cause its price to increase which would adversely affect the 
Group’s financial position and cash flow.
Climate Change: Climate change issues are an important factor for the oil and gas industry.
Transition Risks
The Group’s facilities and operations, and the oil and gas that the Group markets, result in the emission of greenhouse gas 
(“GHG”) which makes the Group subject to GHG emissions legislation and regulation. Governments continue to evaluate and 
implement policy, legislation, and regulations focused on restricting GHG emissions commonly and promoting adaptation to 
climate change. It is not possible to predict what measures governments may implement in this regard, nor is it possible to predict 
the requirements that such measures may impose or when such measures may be implemented. Given the evolving nature of 
climate change policy and the control of GHG emissions and resulting requirements, including carbon taxes and carbon pricing 
schemes implemented by varying levels of government, it is expected that current and future climate change regulations will have 
the effect of increasing the Group’s operating expenses, and, in the long-term, potentially reducing the value of oil and gas assets.
Regulatory climate change related risks arise from increased or amended environmental regulation. A breach of such regulations 
may result in the imposition of fines or issuance of clean up orders in respect of the Group or the Group’s assets, some of which 
may be material. Furthermore, new environmental laws and regulation, particularly in relation to the reduction of, or limitations 
on, GHG emissions or emissions intensity could be implemented. There is a risk that any such programs, laws or regulations, 
if proposed and enacted, may contain emission reduction targets which will require substantial capital investments to adapt 
processes in place or lead to financial penalties or charges as a result of the failure to meet such targets.
Climate change policy is evolving at regional, national and international levels, and political and economic events may significantly 
affect the scope and timing of climate change measures that are ultimately put in place. Implementation of strategies by any level 
of government within the countries in which the Corporation operates, and whether to meet international agreed limits,
or as otherwise determined, for reducing GHGs could have a material impact on the operations and financial condition of the 
Corporation. Increased scrutiny of applications for oil and gas licenses, permits and authorizations to develop assets and projects 
could lead to delay, limit or prevent future development of assets or affect the productivity of assets and the costs associated.
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Management’s Discussion and Analysis
For the three months and year ended December 31, 2025
In addition, concerns about climate change and public discussion that oil and gas operations may be associated with climate 
change have resulted in a number of environmental activists and members of the public opposing the continued exploitation, 
transportation and development of fossil fuels. Given the evolving nature of the debate related to climate change and the control of 
GHGs and resulting requirements, it is not possible to predict the impact on the Group and its operations and financial condition.
Claims have been made against certain energy companies alleging that GHG emissions from oil and natural gas operations 
constitute a public nuisance under certain laws or that such energy companies provided misleading disclosure to the public and 
investors of current or future risks associated with climate change. Individuals, governmental authorities, or other organizations 
may make claims against oil and natural gas companies, including members of the Group, for alleged personal injury, property 
damage, or other potential liabilities. While no member of the Group is a party to any such litigation or proceedings, IPC could be 
named in actions making similar allegations. An unfavourable ruling in any such case could adversely affect the demand for and 
price of the Common Shares, impact the Group’s operations and have an adverse impact on IPC’s financial condition.
Emission and carbon tax regulations in Canada federally and regionally are evolving and as these regulations are established 
or amended, they may have an impact on companies involved in oil production in Canada. The federal Government of Canada 
established the Canadian Net-Zero Emissions Accountability Act that brings into law the commitment to achieve net-zero 
GHG emissions by 2050 and issued the 2030 Emissions Reduction Plan that describes the measures Canada is undertaking to 
reduce emissions to 40 to 45 percent below 2005 levels by 2030. In November 2024, the Government of Canada commenced a 
consultation process with respect to draft Oil and Gas Sector Greenhouse Gas Emissions Cap Regulations, under which specific 
limits on emissions from the oil and gas sector would be imposed with the intention to reduce the carbon intensity of oil and gas 
production in Canada, with a focus on improving energy efficiency, fostering the adoption of cleaner technologies, and accelerating 
the transition to more sustainable practices. It is difficult to assess the overall impact all of these regulations will have on the 
Group at this time but it could result in increased costs to comply, delays in having projects approved and potentially a reduction 
in demand for oil from these regions, all of which could have a material negative impact on the Group’s business. There remains 
uncertainty whether the Canadian federal government will in the future amend or replace these regulations. In November 2025, 
the Canadian federal government entered into a memorandum of understanding with the Alberta provincial government which 
may eliminate the proposed limits on emissions from the oil and gas sector.
The International Sustainability Standards Board (“ISSB”) was created in 2021 with the aim to develop globally consistent, 
comparable and reliable sustainability disclosure standards. In 2023, the ISSB issued IFRS S1 “General Requirements for 
Disclosure of Sustainability-related Financial Information” and IFRS S2 “Climate-related Disclosures”. The Corporation continues 
to evaluate the potential effects of the ISSB issued sustainability standards; however, at this time, the Corporation is not able to 
determine the impact on future financial statements, nor the potential costs to comply with these sustainability standards.
In December 2024, the Canadian Sustainability Standards Board released its voluntary and non-binding Canadian Sustainability 
Disclosure Standards modelled on those developed by the ISSB. While these Canadian standards are non-binding, they could 
influence the development by securities regulators of sustainability and climate-related reporting obligations for Canadian public 
companies under applicable Canadian law. In 2025, Canadian securities regulators stated that they have paused efforts to develop 
mandatory sustainability-related disclosure rules for public companies.
In 2024, Malaysia announced plans to introduce a carbon tax on the Malaysian energy industry commencing in 2026. The Group 
will continue to monitor this situation and, when further details are provided by the Malaysian authorities, will assess the potential 
effects of this proposed tax on the Group’s business in Malaysia.
If the Group is not able to meet future sustainability reporting requirements of regulators or current and future expectations of 
investors, insurance providers, or other stakeholders, IPC’s business and ability to attract and retain skilled employees, obtain 
regulatory permits, licences, registrations, approvals, and authorizations from various governmental authorities, and raise capital 
may be adversely affected.
Physical Risks
Physical climate change related risks can be event-driven with increased severity of extreme weather events, such as cyclones, 
hurricanes, wildfires, droughts or floods, or long-term shifts in climate patterns with sustained higher temperatures, water stress 
or sea level rise. These physical risks may have financial and operational implications for the Group, such as direct damage to 
assets and indirect impacts from supply chain disruption to the delivery of goods and services. Certain of IPC’s oil and gas assets 
are in locations that are proximate to forests and rivers and a wildfire or flood may lead to significant downtime and/or damage.
Sustainability Targets and Disclosures:  IPC is targeting to reduce its net GHG emissions intensity. IPC’s ability to achieve 
these targets is subject to numerous risks and uncertainties, and actions taken in implementing these objectives may also expose 
the Group to certain additional and/or heightened financial and operational risks. In addition, the cost associated with achieving 
emissions reductions targets and other climate and sustainability targets could be significant, and could require significant capital 
expenditures and resources, potentially including the acquisition of technology, with the potential that the costs required to achieve 
targets could differ from original estimates and expectations, which differences may be material. Failure to achieve emissions, 
climate or sustainability targets could have a negative impact on IPC’s reputation, business, cash flows, results of operations, and 
on the Group’s access to, and cost of, capital.
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Management’s Discussion and Analysis
For the three months and year ended December 31, 2025
In June 2024, the Canadian federal government amended the Competition Act (Canada) with respect to how companies 
communicate about environmental goals and performance and to address «greenwashing», meaning false, misleading, or 
deceptive environmental claims made for the purpose of promoting a product or a business interest. There is uncertainty regarding 
how this new legislation will be interpreted and applied. In 2025, the Canadian federal government proposed revisions to these 
provisions intended to reduce the burden on businesses and to provide more clarity on the applicability of these provisions. 
Any statements made in respect of activities undertaken or to be undertaken by IPC with respect to protecting or restoring the 
environment or mitigating environmental and ecological causes or effects of climate change, including the provision of emissions 
figures and forecasts, the acquisition and use of carbon offsets, activities to potentially reduce emissions, and activities to provide 
for environmental stewardship, including water management and biodiversity, should not be relied upon for the purposes of 
investing in securities of IPC or otherwise be considered as promoting IPC’s products or business interests.
Reputational Risks: Reputational risks arise from societal pressure on the fossil fuel industry in relation to its contribution to 
global GHG emissions. Maintaining a positive reputation in the eyes of investors, regulators, communities, employees and the 
general public is an important aspect for the success of the Corporation. Negative impact on the industry and the Corporation’s 
reputation could result in the long-term delays in obtaining regulatory approvals, increased operating costs, lower shareholder 
confidence, or availability of insurance and financing.
Oil and gas operations may be subject to public opposition. Such public opposition could result in higher costs, delays or even 
project cancellations due to increased pressure on governments and regulators by special interest groups including Indigenous 
groups, landowners, environmental groups and other organizations, blockades, legal or regulatory actions or challenges, increased 
regulatory oversight, reduced support of governments, delays in, challenges to, or the revocation of regulatory approvals, permits 
and/or licenses, and direct legal challenges, including the possibility of climate-related litigation.
Project Risks: The Group is undertaking various projects, including Phase 1 of the Blackrod project. Project interruptions may 
delay expected revenues from operations. Significant project cost overruns could make a project uneconomic. IPC’s ability 
to execute projects depends upon numerous factors beyond its control, including: processing, pipeline and storage capacity, 
availability of water, electricity, gas, diluent and other operational supplies, effects of weather, availability of personnel and 
equipment, unexpected cost increases, accidents, regulatory and third party approvals and commercial arrangements, stakeholder 
consultations (including Indigenous consultation) and regulatory changes (including carbon tax). As a result of these and other 
factors, the Group may be unable to execute projects on time, on budget, or at all.
Inflationary Pressures and Costs: The Group’s operating costs could escalate and make operations unprofitable due to supply 
chain disruptions, inflationary cost pressures, equipment limitations, escalating supply costs, commodity prices, and additional 
government intervention. Labour costs, abandonment, reclamation, gas, electricity, water, diluent and chemicals are examples 
of some of the operating and other costs that are susceptible to significant fluctuation. The inability to manage costs may impact 
project returns and future development decisions, which could have an adverse effect on financial performance. The cost or 
availability of oil and gas field equipment may adversely affect IPC’s ability to undertake projects. The oil and gas industry is cyclical 
in nature and is prone to shortages of supply of equipment and services. These materials and services may not be available when 
required at reasonable prices. A failure to secure the services and equipment necessary to operations or projects for the expected 
price, on the expected timeline, or at all, may have an adverse effect on financial performance.
The Group’s financial performance is significantly affected by the cost of operating and the capital costs associated with its assets. 
Operating and capital costs are affected by a number of factors including, but not limited to inflationary price pressure, scheduling 
delays, failure to maintain quality construction standards and supply chain disruptions. Fluctuations in operating and capital costs 
could negatively impact the Group’s business, financial condition, results of operations, cash flows and value of its oil and gas 
reserves.
Operational Risks Relating to Facilities and Pipelines: The pipelines and facilities associated with the Group’s assets, are 
exposed to operational risks that can lead to hydrocarbon releases, production interruptions and unplanned outages. Other 
operating risks relating to the facilities and pipelines associated with the Group’s assets include: the breakdown or failure of 
equipment; breakdown or malicious attacks on information systems or processes; the performance of equipment at levels below 
those originally intended; operator error; disputes and other issues with interconnected facilities; and catastrophic events such 
as natural disasters, fires, explosions, acts of terrorists and saboteurs and other similar events, many of which will be beyond the 
control of the Group. The occurrence or continuance of any of these or other operational events could curtail sales or production 
or materially increase the cost of operating the facilities and pipelines associated with the Group’s oil and gas assets and reduce 
revenues accordingly.
Reductions in Demand for Oil and Gas: Increasing consumer demand for alternatives to oil and gas, conservation measures, 
alternative fuel requirements, and technological advances in fuel economy and renewable energy generation systems, could 
reduce the demand for oil and gas. Some jurisdictions have implemented policies or incentives to decrease the use of fossil fuels 
and to encourage the use of renewable fuel alternatives, which could reduce the demand for oil and gas. Advancements in energy 
efficient products have a similar effect on the demand for oil and gas. The Corporation cannot predict the impact of changing 
demand for oil and gas products, and any major changes may have an adverse effect on IPC’s business, financial condition, results 
of operations and cash flow from operations by decreasing increasing costs, limiting access to capital and decreasing the value of 
oil and gas assets.
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Management’s Discussion and Analysis
For the three months and year ended December 31, 2025
Uncertainties Associated with Estimating Reserves and Resources Volumes: There are numerous uncertainties inherent 
in estimating quantities of oil and gas reserves and resources (contingent and prospective) and the future cash flows attributed 
to such reserves and resources. The cash flow information associated with reserves and resources set forth in this MD&A 
are estimates only. The actual production, revenues, taxes and development and operating expenditures with respect to the 
reserves and resources associated with the Group’s assets will vary from estimates thereof and such variations could be material. 
Estimates of reserves that may be developed and produced in the future are often based upon volumetric calculations and upon 
analogy to similar types of reserves rather than actual production history. There is uncertainty that it will be commercially viable to 
produce any portion of the contingent resources.
In accordance with applicable securities laws, the Corporation and the Corporation’s independent reserves evaluator and auditor 
have used forecast prices and costs in estimating the reserves, resources and future net cash flows as summarized herein. 
Actual future net cash flows will be affected by other factors, such as actual production levels, supply and demand for oil and gas, 
curtailments or increases in consumption by oil and gas purchasers, changes in governmental regulation or taxation and the impact 
of inflation on costs.
References to “contingent resources” do not constitute, and should be distinguished from, references to “reserves”. References 
to “prospective resources” do not constitute, and should be distinguished from, references to “contingent resources” and 
“reserves”. This MD&A contains estimates of the net present value of the future net revenue from IPC’s reserves and resources. 
The estimated values of future net revenue disclosed in this MD&A do not represent fair market value. There is no assurance that 
the forecast prices and cost assumptions used in the reserves and resource evaluations will be attained and variances could be 
material. See also “Reserves and Resources Advisory” below.
SAGD Recovery Process: The Group has implemented a SAGD recovery process at the Onion Lake Thermal project and the 
Blackrod project. The SAGD recovery process requires a significant amount of gas or other fuels to produce steam for use in the 
recovery process. The amount of steam required in the production process can vary and impact costs significantly. The quality and 
performance of the reservoir can impact the timing, cost and levels of production using this technology. There can be no assurance 
that the Group’s operations will produce at the expected levels or on schedule. In addition, a significant amount of water is used 
in SAGD operations. Government regulations apply to access to and use of water. Any shortages in water supplies could lead to 
increased costs and have a material adverse effect on results of operation and financial condition.
Hydraulic Fracturing: Hydraulic fracturing involves the injection of water, sand, and small amounts of additives under high pressure 
into tight rock formations that were previously unproductive to stimulate the production of oil and gas. Concerns about seismic activity, 
including earthquakes, caused by hydraulic fracturing has resulted in regulatory authorities implementing additional protocols for areas 
that are prone to seismic activity or completely banning hydraulic fracturing in other areas. Any new laws, regulations, or permitting 
requirements regarding hydraulic fracturing could lead to operational delays, increased operating costs, third-party or governmental 
claims, and could increase costs of compliance, as well as delay development of certain oil and gas resources. Restrictions or bans on 
hydraulic fracturing could result in restricting the economic recovery of oil and gas reserves. In addition, the Group may need to dispose 
of the fluids produced from oil and gas production operations, including produced water. The legal requirements related to the disposal 
of produced water into a non-producing geologic formation by means of underground injection wells are subject to change based on 
concerns of the public or governmental authorities regarding such disposal activities.
Water: Water is an essential component of IPC’s drilling and hydraulic fracturing processes. Limitations or restrictions on IPC’s ability to 
secure sufficient amounts of water (including limitations resulting from natural causes such as drought), could materially and adversely 
impact IPC’s operations. Severe drought conditions can result in local water authorities taking steps to restrict the use of water in their 
jurisdiction for drilling and hydraulic fracturing in order to protect the local water supply. For example, in 2024, in the face of severe 
drought risks following several warm, dry winters causing Alberta’s snowpack, rivers and reservoirs to be low, the provincial government 
of Alberta entered into water-sharing agreements with a number of the largest and oldest water licensees in southern Alberta. If the 
Group is unable to obtain water to use in IPC’s operations from local sources, water may need to be obtained from new sources and 
transported to drilling sites, resulting in increased costs. Cost increases could have a material adverse effect on drilling economics 
resulting in delays or suspensions of drilling which ultimately would have a detrimental effect on IPC’s financial condition, results of 
operations, and funds flow.
Regulatory Approvals and Compliance and Changes in Legislation and the Regulatory Environment: Oil and gas operations 
(including exploration, development, production, pricing, marketing and transportation) are subject to extensive controls and 
regulations imposed by various levels of government, which may be amended from time to time. Governments may regulate 
or intervene with respect to exploration, production and abandonment activities, price, taxes (including carbon taxes), GHG 
emission restrictions, royalties and the export of oil and gas. The implementation of new regulations or the modification of 
existing regulations affecting the oil and gas industry could reduce demand for oil and gas and increase the costs associated 
with the Group’s oil and gas assets, any of which may have a material adverse effect on the business, financial condition, results 
of operations and prospects of the Group’s oil and gas assets. In order to conduct oil and gas operations, the Group will require 
regulatory permits, licences, registrations, approvals, authorizations and concessions from various governmental authorities. There 
is a risk that the permits, licences, registrations, approvals, authorizations and concessions currently granted to the Group will 
not be renewed or that the Group will be unable to obtain all of the permits, licences, registrations, approvals, authorizations and 
concessions that may be required to conduct operations that it may wish to undertake.
The French government has enacted legislation to cease granting new petroleum exploration licences in France and to restrict 
the production of oil and gas under existing production licences in France from 2040. There is a risk that France could implement 
further legislative changes and that the licence regime in France could become more onerous. In Canada, the oil and gas regulatory 
authorities have implemented regulations regarding the ability to transfer leases, licences, permits, wells and facilities between 
parties. These regulations may make it difficult and costly for producers, such as IPC, to transfer or sell assets to other parties.
30

===== SIDA 74 =====

Management’s Discussion and Analysis
For the three months and year ended December 31, 2025
IPC may be adversely impacted by political, legal, or regulatory developments in Canada and elsewhere that affect local operations 
and local and international markets. Changes in government, government policy or regulations, changes in law or interpretation of 
settled law, third-party opposition to industrial activity generally or projects specifically, and duration of regulatory reviews could 
impact IPC’s existing operations and planned projects. This includes actions by regulators or other political actors to delay or 
deny necessary licences and permits for activities or restrict the operation of third-party infrastructure on which the Group relies. 
Additionally, changes in environmental regulations, assessment processes or other laws, and increasing and expanding stakeholder 
consultation (including Indigenous stakeholders), may increase the cost of compliance or reduce or delay available business 
opportunities and adversely impact results. Other government and political factors that could adversely affect financial results 
include increases in taxes or government royalty rates (including retroactive claims) and changes in trade policies and agreements. 
Further, the adoption of regulations mandating efficiency standards and mandating the sale of electric vehicles, and the use of 
alternative fuels or uncompetitive fuel components, could affect the demand for oil and gas. Many governments are providing tax 
advantages and other subsidies to support alternative energy sources or are mandating the use of specific fuels, technologies or 
electric vehicles. Governments and others are also promoting research into new technologies to reduce the cost and increase 
the scalability of alternative energy sources. The success of these initiatives may decrease demand for oil and gas. A change 
in federal, provincial or municipal governments in Canada may have an impact on the directions taken by such governments on 
matters that may impact the oil and natural gas industry including the balance between economic development and environmental 
policy. The oil and natural gas industry has become an increasingly politically polarizing topic resulting in a rise in civil disobedience 
surrounding oil and natural gas development, particularly with respect to infrastructure projects such as pipelines. Protests, 
blockades, demonstrations and vandalism have the potential to delay and disrupt the Group’s activities.
Indigenous Land and Rights Claims: In Canada, Indigenous groups have filed claims in respect of their Indigenous and treaty 
rights against the federal and certain provincial governments as well as private individuals and companies. Consultation delays, 
claims or objections related to Indigenous rights may disrupt or delay third-party operations, new development or new project 
approvals on the Group’s properties. The Group is not aware of any claims made with respect to its properties or assets; however; 
if a claim arose and was successful, it may have a material adverse effect on the Group’s business, financial condition, results 
of operation and prospects. The Group’s interests at Onion Lake are situated on traditional reserve lands and are subject to the 
federal rules and regulations of Indian Oil and Gas Canada as well as of the Onion Lake Cree Nation of Saskatchewan/Alberta. 
There are risks associated with the management of the Group’s interests on these lands, including access and lease terms.
The Canadian federal and provincial governments have a duty to consult with Indigenous people when contemplating actions 
that may adversely affect the asserted or proven Indigenous or treaty rights and, in certain circumstances, accommodate their 
concerns. The scope of the duty to consult by federal and provincial governments varies with the circumstances and is often the 
subject of litigation. The fulfilment of the duty to consult Indigenous people and any associated accommodations may adversely 
affect the Group’s ability to, or increase the timeline to, obtain or renew, permits, leases, licences and other approvals, or to meet 
the terms and conditions of those approvals, or to advance project development, including current and potential future phases of 
the Blackrod project.
In addition, the Canadian federal government has introduced legislation to implement the United Nations Declaration of the 
Rights of Indigenous Peoples (“UNDRIP“). Other Canadian jurisdictions have introduced or passed similar legislation and have 
begun considering the principles and objectives of UNDRIP , or may do so in the future. The means and timelines associated 
with UNDRIP’s implementation by government are uncertain. Additional processes may be created and legislation associated 
with project development and operations may be amended or introduced, further increasing uncertainty with respect to project 
regulatory approval timelines and requirements.
Change of Control under Licences: The licence areas associated with the Group’s oil and gas assets require government consent 
or compliance with regulations imposed by oil and gas regulatory authorities to effect a change of control of the owner or an 
assignment of the ownership interest in the licence area. There may also be contractual restrictions on assignment and change 
of control, including in the Suffield area of Canada where certain operations are conducted within a Canadian Forces Base under 
access agreements with Canadian federal government and the Alberta provincial government. Accordingly, should the Group 
propose to dispose of assets or if there is a change of control of the Corporation, consent may be required in order to remain in 
compliance with the applicable licences and concessions. The failure to obtain such consent may have a material adverse effect on 
the Corporation. Further, the requirement to obtain such consent may limit the ability of a third party to effect a change of control 
transaction with the Corporation.
Failure to Realize Anticipated Benefits of Acquisitions and Dispositions: The Group may make acquisitions and dispositions of 
businesses and assets in the ordinary course of business. Achieving the benefits of acquisitions depends in part on successfully 
consolidating functions and integrating operations and procedures in a timely and efficient manner as well as the Group’s ability to 
realize the anticipated growth opportunities and synergies from combining the acquired businesses and operations with those of 
the Group. In addition, non-core assets may be periodically disposed of, so that the Group can focus its efforts and resources more 
efficiently. Depending on the state of the market for such non-core assets, certain non-core assets of the Group, if disposed of, 
could be expected to realize less than their carrying value on the financial statements of the Group.
31

===== SIDA 75 =====

Management’s Discussion and Analysis
For the three months and year ended December 31, 2025
Reliance on Third Party Infrastructure: The Group delivers the products associated with the Group’s assets by gathering, 
processing and pipeline systems, most of which it does not own. The amount of oil and gas that the Group is able to produce 
and sell is subject to the accessibility, availability, proximity and capacity of these gathering, processing and pipeline systems. The 
lack of availability of capacity in any of the gathering, processing and pipeline systems, and in particular the processing facilities, 
could ceased refining and result in the Corporation’s inability to realize the full economic potential of its production or in a reduction 
of the price offered for the Corporation’s production or increased operating or transportation costs. Any significant change in 
market factors or other conditions affecting these infrastructure systems and facilities, as well as any delays in constructing new 
infrastructure systems and facilities could harm the Group’s business financial condition, results of operations, cash flows and 
future prospects.
Credit Facilities and Bonds: The Group is, and may in the future become, party to credit facilities with international financial 
institutions. The Corporation has also issued bonds and may issue further bonds in the future. The terms of these facilities and 
bonds may contain operating and financial covenants and restrictions on the ability of the Group to, among other things, incur or 
lend additional debt, pay dividends or distributions and make restricted payments, encumber its assets, sell assets and enter into 
certain merger or consolidation transactions. The failure of the Group to comply with the covenants contained in these facilities 
and bonds could result in an event of default, which could, through acceleration of debt, enforcement of security or otherwise, 
materially and adversely affect the operating results and financial condition of the Group.
In addition, the maximum amount that the Group is permitted to borrow under its credit facilities may be subject to periodic review 
by the lenders. The Group’s lenders generally review its oil and gas production and reserves, forecast oil and gas prices, general 
business environment and other factors to establish the amount which the Group is entitled to borrow. In the event the lenders 
decide to reduce the amount of credit available under the credit facilities, the Group may not have the ability to borrow funds under 
such facilities or may be required to repay all or a portion of the amounts owing thereunder.
If the Group fails to comply with the covenants in these facilities and bonds, is unable to repay or refinance amounts owned at 
maturity or pay the debt service charges or otherwise commit an event of default, such as bankruptcy, it could result in the seizure 
and/or sale of the Group’s assets by the creditors. The proceeds from any sale of the Group’s assets would be applied to satisfy 
amounts owed to the secured creditors and then unsecured creditors. Only after the proceeds of that sale were applied towards 
the Group’s debt would the remainder, if any, be available for the benefit of shareholders.
Credit Ratings: Credit ratings affect the Corporation’s ability to obtain short term and long-term financing and the cost of such 
financing. A reduction in the current rating or a negative change in the rating outlook could adversely affect the cost of financing 
and access to sources of liquidity and capital. Any rating may not remain in effect for any given period of time or may be 
revised or withdrawn entirely by a rating agency in the future if in its judgment circumstances so warrant. Credit ratings are not 
recommendations to buy, sell or hold any of the Corporation’s securities.
Competition for Resources and Markets: The international oil and gas industry is competitive in all its phases. The Group 
competes with numerous other organizations in the search for, and the acquisition of, oil and gas properties and in the marketing 
of oil and gas. The Corporation’s competitors include oil and gas companies that may have substantially greater financial resources, 
staff and facilities than those of the Corporation. The Corporation’s ability to increase its reserves and resources in the future 
depends not only on its ability to explore and develop its present properties, but also on its ability to select and acquire other 
suitable producing properties or prospects for exploratory and development drilling. Competitive factors in the distribution and 
marketing of oil and gas include price and methods and reliability of delivery and storage. Competition may also be presented by 
alternate fuel sources and renewable energies.
Marketing: A decline in the Group’s ability to market oil and gas production could have a material adverse effect on its production 
levels or on the price that the Group receives for production, which in turn may affect the financial condition of the Corporation and 
the market price of the Common Shares. IPC’s business depends in part upon the availability, proximity and capacity of oil and gas 
gathering systems, pipelines and processing facilities as well as, potentially, rail loading facilities and railcars. Applicable regulation 
of oil and gas production, processing and transportation, tax and energy policies, general economic conditions, and changes in 
supply and demand could adversely affect IPC’s ability to produce and market oil and gas. If market factors change and inhibit 
the marketing of production, overall production or realized prices may decline, which may affect the financial condition of the 
Corporation and the market price of the Common Shares.
Hedging Strategies: From time to time, the Group may enter into agreements to receive fixed prices on its oil and gas production 
to offset the risk of revenue reduction if commodity prices decline; however, if commodity prices increase beyond the levels 
set in such agreements, the Group will not benefit from such increases. Similarly, from time to time, the Group may enter into 
agreements to fix the exchange rate of certain currencies. However, if a currency declines in value compared to another currency, 
the Group may not benefit from the fluctuating exchange rate if an agreement has fixed such exchange rate
Fraud, Bribery and Corruption: The operations relating to the Group’s oil and gas assets are governed by the laws of many 
jurisdictions, which generally prohibit bribery and other forms of corruption. While the Corporation has implemented an anti- 
corruption compliance program across the Group, the Corporation cannot guarantee that the Group’s employees, officers, 
directors, agents, or business partners have not in the past or will not in the future engage in conduct undetected by the 
processes and procedures to be adopted by the Corporation and for which the Corporation might be held liable under applicable 
anti-corruption laws. Despite the Corporation’s compliance program and other related training initiatives, it is possible that the 
Corporation, or some of its subsidiaries, employees or contractors, could be subject to an investigation related to charges of 
bribery or corruption as a result of the unauthorized actions of its employees or contractors, which could result in significant 
corporate disruption, onerous penalties and reputational damage.
32

===== SIDA 76 =====

Management’s Discussion and Analysis
For the three months and year ended December 31, 2025
Decommissioning, Abandonment and Reclamation Costs: The Group is responsible for compliance with all applicable laws, 
regulations and contractual requirements regarding the decommissioning, abandonment and reclamation of the Group’s assets at 
the end of their economic life, the costs of which may be substantial. It is not possible to predict these costs with certainty since 
they will be a function of requirements at the time of decommissioning, abandonment and reclamation and the actual costs may 
exceed current estimates. Laws, regulations and contractual requirements with regard to abandonment and decommissioning may 
be implemented or amended in the future.
Certain jurisdictions in Canada, including Alberta and Saskatchewan, have developed liability management programs designed to 
prevent taxpayers from incurring costs associated with suspension, abandonment, remediation and reclamation of wells, facilities 
and pipelines if a licensee or permit holder is unable to satisfy its regulatory obligations. The implementation of or changes to 
the requirements of liability management programs may result in significant increases to the security that must be posted by 
licensees, increased and more frequent financial disclosure obligations or the denial of licence or permit transfers, which could 
impact the availability of capital to be spent by the Group, which could in turn materially adversely affect IPC’s business and 
financial condition. In addition, these liability management programs may prevent or interfere with IPC’s ability to acquire or 
dispose of assets, as both the vendor and the purchaser of oil and gas assets must be in compliance with the liability management 
programs (both before and after the transfer of the assets) for the applicable regulatory agency to allow for the transfer of such 
assets.
Third Party Credit Risk: The Group may be exposed to third-party credit risk through the contractual arrangements associated 
with the Group’s assets with its current or future joint venture partners, marketers of its petroleum and gas production, third party 
uses of its facilities and other parties. In the event such entities fail to meet their contractual obligations in respect of the Group’s 
assets, such failures may have a material adverse effect on the Group’s business, financial condition, results of operations and 
prospects.
Repatriation of Earnings:  Jurisdictions in which the Group operates may implement measures to facilitate management of 
foreign exchange risk. Such measures could restrict the Group’s ability to repatriate earning or other funds.
Expiration and Renewal of Licences, Leases and Production Sharing Contracts: Certain of the Group’s oil and gas assets 
are held in the form of licences, leases and production sharing contracts (PSCs). If the holder of the licence, lease or PSC or 
the operator of the licence, lease or PSC fails to meet the specific requirement of a licence, lease or PSC, including compliance 
with environmental, health and safety requirements, the licence, lease or PSC may terminate or expire. There is a risk that the 
obligations required to maintain each licence, lease or PSC will not be met. The termination or expiration of the licence, lease or 
PSC, or the working interests relating to a licence may have a material adverse effect on the business, financial condition, results 
of operations and prospects associated with the Group’s oil and gas assets. From time to time, the licences and leases may, in 
accordance with their terms, become due for renewal; there is a risk that these licences, leases and PSCs associated with the 
Group’s oil and gas assets will not be renewed by the relevant government authorities on terms that will be acceptable to the 
Corporation. There also can be significant delay in obtaining licence renewals which may already affect the operations associated 
with the Group’s oil and gas assets.
Reliance on Third Party Operators: The Group has partners in some of the licence areas associated with the Group’s assets. In 
some cases, including in the Aquitaine Basin in France, the Group is not the operator of the licence and concession areas and must 
depend on the competence, expertise, judgment and financial resources (in addition to those of its own and, where relevant, other 
partnership and joint venture companies) of the partner operator and the operator’s compliance with the terms of the licences, 
leases and contractual arrangements. Mismanagement of licence areas by the Group’s partner operators or defaults by them in 
meeting required obligations may result in significant exploration, production or development delays, losses or increased costs to 
the Group.
Litigation: In the normal course of the Group’s operations, it may become involved in, named as a party to, or be the subject of, 
various legal proceedings. The outcome of outstanding, pending or future proceedings cannot be predicted with certainty and 
may be determined adversely to the Group and as a result, could have a material adverse effect on the Group’s assets, liabilities, 
business, financial condition and results of operations.
Terrorism and Sabotage: If any of the properties, wells or facilities comprising the Group’s assets is the subject of terrorist attack 
or sabotage, it may have a material adverse effect on the Group’s business, financial condition, results of operations, cash flows 
and future prospects.
Information Security and Artificial Intelligence: The Group is dependent on its information systems and computer-based 
programs. Failure, malfunction or security breaches by computer hackers and cyberterrorists of any such systems or programs 
may have a material adverse effect on the Group’s business and systems, potentially disrupting operations and affecting network 
assets and people’s privacy. The Group manages cybersecurity risk by ensuring appropriate technologies, processes and practices 
are effectively designed and implemented to help prevent, detect and respond to threats as they emerge and evolve. The Chief 
Operating Officer of the Corporation is principally responsible for overseeing cybersecurity risk management and for reporting 
such risks to other members of executive management and to the Board. The primary risks to the Group include, loss of data, 
destruction or corruption of data, compromising of confidential customer or employee information, leaked information, disruption 
of business, theft or extortion of funds, regulatory infractions, loss of competitive advantage and reputational damage.
33

===== SIDA 77 =====

Management’s Discussion and Analysis
For the three months and year ended December 31, 2025
Further, the Group is subject to a variety of information technology and system risks as a part of its normal course operations, 
including potential breakdown, invasion, virus, cyber-attack, cyber-fraud, security breach, and destruction or interruption of 
information technology systems by third parties or insiders. Unauthorized access to these systems by employees or third parties 
could lead to corruption or exposure of confidential, fiduciary or proprietary information, interruption to communications or 
operations or disruption to business activities. In addition, cyber phishing attempts, in which a malicious party attempts to obtain 
sensitive information such as usernames, passwords, credit card and banking details (and money), or approval of wire transfer 
requests, by disguising themselves as a trustworthy entity in an electronic communication, have become more widespread and 
sophisticated in recent years. If IPC were to become a victim to a cyber phishing attack it could result in a loss or theft of financial 
resources or critical data and information, or could result in a loss of control of the Group’s technological infrastructure or financial 
resources. 
The controls implemented by the Group may not adequately prevent cybersecurity breaches. Disruption of critical information 
technology services, or breaches of information security, could have a negative effect on performance and earnings, as well 
as IPC’s reputation, and any damages sustained may not be adequately covered by current insurance coverage, or at all. The 
significance of any such event is difficult to quantify but may in certain circumstances be material and could have a material 
adverse effect on the Group’s business, financial condition and results of operations. The protection of customer, employee, 
and company data is also critical to IPC’s business. The regulatory environment surrounding information security and privacy 
is increasingly demanding, with the frequent imposition of new and constantly changing requirements. A significant breach of 
employee or company data could attract a substantial amount of media attention, damage relationships and reputation, and 
result in fines or lawsuits. In addition, an increasing number of countries have introduced and/or increased enforcement of 
comprehensive privacy laws or are expected to do so. The continued emphasis on information security as well as increasing 
concerns about government surveillance may lead to the Group being required to take additional measures to enhance security 
and/or assume higher liability.
The increasing prevalence of artificial intelligence («AI») tools may also increase the risk of cyber-attacks or data breaches as a 
result of the use of AI to launch more automated, targeted and coordinated attacks to the Corporation’s technology infrastructure. 
The Corporation’s information technology systems may incorporate the use of AI and the development of such capabilities remains 
ongoing. Although the Corporation has implemented policies with respect to its employees’ use of AI tools, AI presents risks, 
challenges and unintended consequences that could affect its adoption, and therefore the Corporation’s business. AI algorithms 
and training methodologies may be flawed. The use of AI to support business operations of the Corporation, its partners, vendors, 
suppliers, contractors or others carries inherent risks related to data privacy and cybersecurity, such as intended, unintended or 
inadvertent transmission of proprietary or sensitive information, as well as challenges related to implementing and maintaining AI 
tools, including the development and maintenance of appropriate datasets for such support.
Dependence on AI to make certain business decisions without adequate safeguards may introduce additional operational 
vulnerabilities by producing inaccurate outcomes or other unintended results, based on flaws or deficiencies in the underlying 
data. Further, AI tools or software may rely on data sets to produce derivative work which may contain content subject to licence, 
copyright, patent or trademark protection or sensitive personal information and can produce outputs that infringe intellectual 
property rights or compromise privacy of individuals or organizations, raising concerns about data privacy. As AI is an emerging 
technology for which the legal and regulatory landscape is not fully developed, including potential liability for breaching intellectual 
property or privacy rights or laws, new laws and regulations applicable to AI initiatives remain uncertain and the Corporation’s 
obligation to comply with such laws could entail significant costs, negatively affect the Corporation’s business or limit the 
Corporation’s ability to incorporate certain AI capabilities into its operations.
Insurance: Although the Group maintains insurance in accordance with industry standards to address certain risks related to 
oil and gas operations, such insurance has limitations on liability and may not be sufficient to cover the full extent of potential 
liabilities. In addition, certain risks are not, in all circumstances, insurable or, in certain circumstances, the Group may elect not 
to obtain insurance to deal with specific risks due to the high premiums associated with such insurance or other reasons. The 
payment of any uninsured liabilities would reduce the funds available to IPC. The occurrence of a significant event that IPC is 
not fully insured against, or the insolvency of the insurer of such event, may have an adverse effect on IPC’s business, financial 
condition, results of operations and prospects. The Group’s insurance policies are generally renewed on an annual basis and, 
depending on factors such as market conditions, the premiums, policy limits and/or deductibles for certain insurance policies 
can vary substantially. In some instances, certain insurance may become unavailable or available only for reduced amounts of 
coverage.
Forced or Child Labour in Supply Chains: The Fighting Against Forced Labour and Child Labour in Supply Chains Act came into 
force in Canada in 2024. Pursuant to this legislation, any company that is subject to the reporting requirements, including IPC,
is required to conduct certain due diligence on its supply chains and to file an annual report accordingly. Further, in late 2024 the 
Canadian federal government stated its intention to create a new and more onerous supply chain due diligence regime overseen 
by a new oversight agency whereby reporting entities will be required to scrutinize their international supply chains for human 
rights risks and take action to resolve any such risks. While IPC is currently unaware of any forced or child labour in any of the 
Group’s supply chains, the increased scrutiny on the supply chains of Canadian companies could uncover the risk or existence of 
forced or child labour in a supply chain to which IPC has a connection, which could negatively impact IPC’s reputation.
Pandemics: The Covid-19 virus and the restrictions and disruptions related to it had a material effect on the world demand for, and 
prices of, oil and gas as well as the market price of the shares of oil and gas companies generally. There can be no assurance that 
these effects will not resume or that commodity prices will not decrease or remain volatile in the future due to pandemics. These 
factors are beyond the control of the Corporation, and it is difficult to assess how these, and other factors, will continue to affect 
the Corporation and the market price of IPC’s Common Shares.
34

===== SIDA 78 =====

Management’s Discussion and Analysis
For the three months and year ended December 31, 2025
Potential Conflicts of Interest: Certain of the individuals who are directors of the Corporation are also directors of other oil 
and gas companies and as such may, in certain circumstances, have a conflict of interest requiring them to abstain from certain 
decisions.
Key Personnel: IPC’s success is in part dependent upon management, leadership capabilities and the quality and competency  
of key personnel. If IPC is unable to retain key personnel and critical talent or to attract and retain new talent with the necessary 
leadership, professional and technical competencies, it could have an adverse effect on the Group’s financial condition, results of 
operations and prospects.
Change in Investors: Some institutional and other investors have announced that they no longer are willing to fund or invest 
in oil and gas assets or companies, or are reducing the amount thereof over time. In addition, certain institutional investors 
are requesting that issuers develop and implement more robust social, environmental and governance policies and practices. 
Developing and implementing such policies and practices can involve significant costs and require a significant time commitment 
from the Corporation. Failing to implement the policies and practices, as requested by institutional investors, may result in such 
investors reducing their investment in the Corporation, or not investing in IPC at all.
Significant Shareholder:  Nemesia S.à.r.l., an investment company wholly owned by trusts whose settlor is the late Adolf H. 
Lundin (“Nemesia”), owns approximately 38 percent of the aggregate Common Shares of the Corporation. Nemesia’s holdings 
may allow it to significantly affect substantially all the actions taken by the shareholders of the Corporation, including the election 
of directors. As long as Nemesia maintains a significant interest in the Corporation, it is likely that Nemesia will exercise significant 
influence on the ability of the Corporation to, among other things, enter into a change in control transaction of the Corporation and 
may also discourage acquisition bids for the Corporation. There is a risk that the interests of Nemesia may not be aligned with the 
interests of other shareholders.
Financial Risks 
Management Estimates and Assumptions: In preparing consolidated financial statements in conformity with IFRS Accounting 
Standards, estimates and assumptions are used by management in determining the reported amounts of assets and liabilities, 
revenues and expenses recognized during the periods presented and disclosures of contingent assets and liabilities known to 
exist as of the date of the financial statements. These estimates and assumptions must be made because certain information that 
is used in the preparation of such financial statements is dependent on future events, cannot be calculated with a high degree of 
precision from data available, or is not capable of being readily calculated based on generally accepted methodologies. In some 
cases, these estimates are particularly difficult to determine and the Corporation must exercise significant judgment. Actual results 
for all estimates could differ materially from the estimates and assumptions used by the Corporation, which could have a material 
adverse effect on the Group’s business, financial condition, results of operations, cash flows and future prospects.
Disclosure Controls and Procedures and Internal Controls over Financial Reporting: Effective disclosure controls and 
procedures and internal controls over financial reporting are necessary for the Corporation to provide reliable financial and other 
disclosures and to help prevent fraud. The Corporation cannot be certain that the procedures it undertakes to help ensure the 
reliability of its financial reports and other disclosures, including those imposed on it under Canadian securities laws, will ensure 
that it maintains adequate control over financial processes and reporting. Failure to implement required new or improved controls, 
or difficulties encountered in their implementation, could harm the Group’s results of operations or cause it to fail to meet its 
reporting obligations. If the Corporation or its independent auditor discovers a material weakness, the disclosure of that fact, even 
if quickly remedied, could reduce the market’s confidence in the Corporation’s consolidated financial statements and harm the 
trading price of the Common Shares.
Income Taxes: Income tax laws relating to the oil and gas industry, such as the treatment of resource taxation or dividends and 
the imposition of carbon taxes, may in the future be changed or interpreted in a manner that adversely affects the Group’s assets. 
Furthermore, there is a risk that the relevant tax authorities will not agree with management’s calculation of the income for tax 
purposes associated with the Group’s assets or that such tax authorities will change their administrative practices to the detriment 
of the Corporation. In the event of a successful reassessment of the Corporation’s income tax returns, such reassessment may 
have an impact on current and future taxes payable.
The EU previously imposed a tax on energy companies deriving income from operations in EU countries, which tax was applicable 
to the Group in France in 2022. Such tax could be reinstated in the future or similar taxes could be levied in other jurisdictions in 
which the Group operates or proposes to operate.
Additional Funding Requirements: The Corporation’s cash flow from its reserves may not be sufficient to fund its ongoing 
activities at all times. From time to time, the Corporation may require additional financing in order to carry out its oil and gas 
acquisition, exploration and development activities. Failure to obtain such financing on a timely basis could cause the Corporation 
to forfeit its interest in certain properties, miss certain acquisition opportunities and reduce or terminate its operations. If 
the Corporation’s revenues from its reserves decrease as a result of lower oil and gas prices or otherwise, it will affect the 
Corporation’s ability to expend the necessary capital to replace its reserves or to maintain its production. If the Corporation’s funds 
from operations is not sufficient to satisfy its capital expenditure requirements, there is a risk that debt or equity financing will be 
unavailable to meet these requirements or, if available, will be on terms unacceptable to the Corporation. Continued uncertainty 
in domestic and international credit markets could materially affect the Corporation’s ability to access sufficient capital for its 
capital expenditures and acquisitions, and as a result, may have a material adverse effect on the Corporation’s ability to execute 
its business strategy and on its business, financial condition, results of operations and prospects and also negatively impact the 
market price of the Common Shares.
35

===== SIDA 79 =====

Management’s Discussion and Analysis
For the three months and year ended December 31, 2025
Variations in Foreign Exchange Rates and Interest Rates: World oil and gas prices are quoted in United States dollars and 
are therefore affected by exchange rates, which will fluctuate over time. Future exchange rates could accordingly impact the 
future value of the Corporation’s reserves and resources as determined by independent reserve auditors. To the extent that the 
Corporation engages in risk management activities related to foreign exchange rates, there will be a credit risk associated with 
counterparties of the Corporation. An increase in interest rates could result in a significant increase in the amount the Corporation 
pays to service any debt that it may incur, which could negatively impact the market price of the Common Shares.
Issuance of Further Debt: From time to time, the Corporation may enter into transactions to acquire assets or the shares of 
other organizations. These transactions may be financed in whole or in part with debt, which may create debt or increase the 
Corporation’s then-existing debt levels above industry standards for oil and gas companies of similar size. Depending on future 
exploration and development plans, the Corporation may require additional equity and/or debt financing that may not be available 
or, if available, may not be available on favorable terms. The level of the indebtedness that the Corporation may have from 
time to time could impair the Corporation’s ability to obtain additional financing on a timely basis to take advantage of business 
opportunities that may arise.
Common Share Price Volatility: The market price for Common Shares may be volatile and subject to wide fluctuations in 
response to numerous factors, many of which are beyond the Corporation’s control, including the following:
• Actual or anticipated fluctuations in the Corporation’s results of operations;
• Recommendations by securities research analysts;
• Changes in the economic performance or market valuations of other companies that investors deem comparable to the 
Corporation;
• The loss of executive officers and other key personnel of the Corporation;
• Issuances or perceived issuances of additional Common Shares;
• Significant acquisitions or business combinations, strategic partnerships, joint ventures or capital;
• Commitments by or involving the Corporation or its competitors; and
• Trends, concerns, technological or competitive developments, regulatory changes and other related issues in the 
Corporation’s business segments or target markets.
Financial markets can experience significant price and volume fluctuations that may particularly affect the market prices of 
equity securities of companies and that may be unrelated to the operating performance, underlying asset values or prospects of 
such companies. Accordingly, the market price of the Common Shares may decline even if the Corporation’s operating results, 
underlying asset values or prospects have not changed. These factors, as well as other related factors, may cause decreases in 
asset values, which may result in impairment losses.
DISCLOSURE CONTROLS AND INTERNAL CONTROL OVER FINANCIAL REPORTING
Disclosure Controls and Procedures
Disclosure controls and procedures have been designed to provide reasonable assurance that information required to be 
disclosed by the Corporation in its annual filings, interim filings or other reports filed or submitted by it under securities legislation 
is recorded, processed, summarized and reported within the time periods specified in the securities legislation. Management, 
under the supervision of the Chief Executive Officer and the Chief Financial Officer, is responsible for the design and operation of 
disclosure controls and procedures.
Internal Controls over Financial Reporting
Management is also responsible for the design of the Group’s internal controls over financial reporting in order to provide reasonable 
assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in 
accordance with IFRS. However, due to inherent limitations, internal control over financial reporting may not prevent or detect all 
misstatements and fraud.
There have been no material changes to the Groups internal control over financial reporting during the three and nine months ended 
December 31, 2025, that have materially affected, or are reasonably likely to materially affect, the Group’s internal control over 
financial reporting. 
Control Framework 
Management assesses the effectiveness of the Corporation’s internal control over financial reporting using the Internal Control
– Integrated Framework (2013 Framework) issued by the Committee of Sponsoring Organizations of the Treadway Commission 
(COSO). Management concluded that the Corporation’s internal control over financial reporting was effective as of December 31, 
2025.  
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION 
This MD&A 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 MD&A 
are expressly qualified by this cautionary statement. Forward-looking statements speak only as of the date of this MD&A, 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.
36

===== SIDA 80 =====

Management’s Discussion and Analysis
For the three months and year ended December 31, 2025
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: 
• 2026 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 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 its 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 oil prices and net present values;
• Current and future production performance, operations and development potential of the Onion Lake Thermal, Suffield, 
Brooks, Ferguson and Mooney operations, including the timing and success of future oil and gas drilling and optimization 
programs;
• 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 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;
• IPC’s ability to implement its greenhouse gas (GHG) emissions intensity and climate strategies and to achieve its net GHG 
emissions intensity reduction targets;
• IPC’s ability to implement projects to reduce net emissions intensity, including potential carbon capture and storage;
• 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 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, tariffs, 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. See also “Reserves and Resources Advisory“.
The forward-looking statements are based on certain key expectations and assumptions made by IPC, including expectations
and assumptions concerning: the potential impact of tariffs implemented in 2025 by the U.S. and Canadian governments and that 
other than the tariffs that have been implemented, neither the U.S. nor Canada (i) increases the rate or scope of such tariffs, or 
imposes new tariffs, on the import of goods from one country to the other, including on oil and natural gas, and/or (ii) imposes any 
other form of tax, restriction or prohibition on the import or export of products from one country to the other, including on oil and 
natural gas; prevailing commodity prices and currency exchange rates; applicable royalty rates and tax laws; interest rates; future 
well production rates and reserve and contingent resource volumes; operating costs; our ability to maintain our existing credit 
ratings; our ability to achieve our performance targets; the timing of receipt of regulatory approvals; the performance of existing 
wells; the success obtained in drilling new wells; anticipated timing and results of capital expenditures; the sufficiency of budgeted 
capital expenditures in carrying out planned activities; the timing, location and extent of future drilling operations; the successful 
completion of acquisitions and dispositions and that we will be able to implement our standards, controls, procedures and policies 
in respect of any acquisitions and realize the expected synergies on the anticipated timeline or at all; the benefits of acquisitions; 
the state of the economy and the exploration and production business in the jurisdictions in which IPC operates and globally; the 
availability and cost of financing, labour and services; our intention to complete share repurchases under our normal course issuer 
bid program, including the funding of such share repurchases, existing and future market conditions, including with respect to the 
price of our common shares, and compliance with respect to applicable limitations under securities laws and regulations and stock 
exchange policies; and the ability to market crude oil, natural gas and natural gas liquids successfully.
37

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Management’s Discussion and Analysis
For the three months and year ended December 31, 2025
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 current and potential conflicts in Ukraine, the Middle East, South America and elsewhere and 
their potential impact on, among other things, global market conditions;
• Political or economic developments, including, without limitation, the risk that (i) one or both of the U.S. and Canadian 
governments increases the rate or scope of tariffs implemented in 2025, or imposes new tariffs on the import of goods from 
one country to the other, including on oil and natural gas, (ii) the U.S. and/or Canada imposes any other form of tax, restriction 
or prohibition on the import or export of products from one country to the other, including on oil and natural gas, and (iii) the 
tariffs imposed by the U.S. on other countries and responses thereto could have a material adverse effect on the Canadian, 
U.S. and global economies, and by extension the Canadian oil and natural gas industry and the Corporation; and
• Changes in legislation, including but not limited to tax laws, royalties, environmental and abandonment regulations. 
Readers are cautioned that the foregoing list of factors is not exhaustive. See also “Risk Factors”.
Estimated production and FCF generation are based on IPC’s current business plans over the periods of 2026 to 2030 and 2031 
to 2035, less net debt of USD 484 million as at December 31, 2025, with assumptions based on the reports of IPC’s independent 
reserves evaluator and auditor, and including certain corporate adjustments relating to estimated general and administration costs 
and hedging, and excluding shareholder distributions and certain refinancing costs. Assumptions include average net production 
of approximately 62 Mboepd over the period of 2026 to 2030, average capital expenditures of approximately USD 5 per boe, 
average operating costs of approximately USD 18 to 20 per boe, average Brent oil prices of USD 65 to 95 per bbl 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 auditor 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.
Additional information on these and other factors that could affect IPC, or its operations or financial results, are included in 
the Financial Statements, the Corporation’s material change report (MCR) dated February 10, 2026, the Corporation’s Annual 
Information Form (AIF) for the year ended December 31, 2024 (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 MD&A. 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.
38

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Management’s Discussion and Analysis
For the three months and year ended December 31, 2025
RESERVES AND RESOURCES ADVISORY 
This MD&A contains references to estimates of gross and net reserves and resources attributed to the Corporation’s oil and gas 
assets. Gross reserves/resources are the working interest (operating or non-operating) share before deduction of royalties and 
without including any royalty interests. Net reserves/resources are the working interest (operating or non-operating) share after 
deduction of royalty obligations, plus royalty interests in reserves/resources, and in respect of PSCs in Malaysia, adjusted for cost 
and profit oil. Unless otherwise indicated, reserves/resource volumes are presented on a gross basis.
Reserve estimates, contingent resource estimates and estimates of future net revenue in respect of IPC’s oil and gas assets 
in Canada and France/Malaysia are effective as of December 31, 2025, and are included in the reports prepared by Sproule 
International Limited and ERCE Equipoise Ltd., respectively (collectively, Sproule ERCE), an independent qualified reserves 
evaluator and auditor, 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 ERCE’s December 31, 2025 
price forecasts.
The price forecasts used in the Sproule ERCE reports, are available on the website of Sproule ERCE (sproule-erce.com) and are 
contained in the MCR. These price forecasts are as at December 31, 2025 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 521 MMboe as at December 31, 2025, by the mid-point of 
the 2026 CMD production guidance of 44,000 to 47,000 boepd.
The product types comprising the 2P reserves and contingent resources described in this MD&A are contained in the MCR. 
See also “Supplemental Information regarding Product Types” below. Light, medium and heavy crude oil and bitumen reserves/ 
resources disclosed in this MD&A include solution gas and other by-products.
“2P reserves“ means proved plus probable reserves. “Proved reserves“ are those reserves that can be estimated with a high 
degree of certainty to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated proved 
reserves. “Probable reserves“ are those additional reserves that are less certain to be recovered than proved reserves. It is equally 
likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated proved plus probable 
reserves.
Each of the reserves categories reported (proved and probable) may be divided into developed and undeveloped categories. 
“Developed reserves” are those reserves that are expected to be recovered from existing wells and installed facilities or, if 
facilities have not been installed, that would involve a low expenditure (for example, when compared to the cost of drilling a well) 
to put the reserves on production. The developed category may be subdivided into producing and non-producing. “Developed 
producing reserves” are those reserves that are expected to be recovered from completion intervals open at the time of the 
estimate. These reserves may be currently producing or, if shut-in, they must have previously been on production, and the date of 
resumption of production must be known with reasonable certainty. “Developed non-producing reserves” are those reserves that 
either have not been on production, or have previously been on production, but are shut-in, and the date of resumption
of production is unknown. “Undeveloped reserves” are those reserves expected to be recovered from known accumulations 
where a significant expenditure (for example, when compared to the cost of drilling a well) is required to render them capable of 
production. They must fully meet the requirements of the reserves classification (proved, probable) to which they are assigned.
Contingent resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known 
accumulations using established technology or technology under development, but which are not currently considered to be 
commercially recoverable due to one or more contingencies. Contingencies are conditions that must be satisfied for a portion 
of contingent resources to be classified as reserves that are: (a) specific to the project being evaluated; and (b) expected to be 
resolved within a reasonable timeframe. Contingencies may include factors such as economic, legal, environmental, political, 
and regulatory matters, or a lack of markets. It is also appropriate to classify as contingent resources the estimated discovered 
recoverable quantities associated with a project in the early evaluation stage. Contingent resources are further classified in
accordance with the level of certainty associated with the estimates and may be sub-classified based on a project maturity and/or 
characterized by their economic status.
There are three classifications of contingent resources: low estimate, best estimate and high estimate. Best estimate is a 
classification of estimated resources described in the COGE Handbook as being considered to be the best estimate of the quantity 
that will be actually recovered. It is equally likely that the actual remaining quantities recovered will be greater or less than the best 
estimate. If probabilistic methods are used, there should be at least a 50 percent probability that the quantities actually recovered 
will equal or exceed the best estimate.
Contingent resources are further classified based on project maturity. The project maturity subclasses include development 
pending, development on hold, development unclarified and development not viable. All of the Corporation’s contingent resources 
are classified as either development on hold or development unclarified. Development on hold is defined as a contingent
resource where there is a reasonable chance of development, but there are major non-technical contingencies to be resolved 
that are usually beyond the control of the operator. Development unclarified is defined as a contingent resource that requires 
further appraisal to clarify the potential for development and has been assigned a lower chance of development until commercial 
contingencies can be clearly defined. Chance of development is the probability of a project being commercially viable. Where 
risked resources are presented, they have been adjusted based on the chance of development by multiplying the unrisked values 
by the chance of development.
 
39

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Management’s Discussion and Analysis
For the three months and year ended December 31, 2025
References to “unrisked“ contingent resources volumes means that the reported volumes of contingent resources have not 
been risked (or adjusted) based on the chance of commerciality of such resources. In accordance with the COGE Handbook for 
contingent resources, the chance of commerciality is solely based on the chance of development based on all contingencies 
required for the re-classification of the contingent resources as reserves being resolved. Therefore, unrisked reported volumes 
of contingent resources do not reflect the risking (or adjustment) of such volumes based on the chance of development of such 
resources.
The contingent resources reported in this MD&A are estimates only. The estimates are based upon a number of factors and 
assumptions each of which contains estimation error which could result in future revisions of the estimates as more technical and 
commercial information becomes available. The estimation factors include, but are not limited to, the mapped extent of the oil 
and gas accumulations, geologic characteristics of the reservoirs, and dynamic reservoir performance. There are numerous risks 
and uncertainties associated with recovery of such resources, including many factors beyond the Corporation’s control. There is 
uncertainty that it will be commercially viable to produce any portion of the contingent resources referred to in this MD&A.
2P reserves and contingent resources included in the reports prepared by Sproule ERCE have been aggregated. Estimates of 
reserves, resources and future net revenue for individual properties may not reflect the same level of confidence as estimates 
of reserves, resources and future net revenue for all properties, due to aggregation. This MD&A contains estimates of the net 
present value of the future net revenue from IPC’s reserves and contingent resources. The estimated values of future net revenue 
disclosed in this MD&A do not represent fair market value. There is no assurance that the forecast prices and cost assumptions 
used in the reserve and resources evaluations will be attained and variances could be material.
References to “contingent resources” do not constitute, and should be distinguished from, references to “reserves”.
The reserves and resources information and data provided in this MD&A present only a portion of the disclosure required 
under NI 51-101. All of the required information will be contained in the Corporation’s Annual Information Form for the year 
ended December 31, 2025, which will be filed on SEDAR+ (accessible at www.sedarplus.ca) on or before April 1, 2026. Further 
information with respect to IPC’s reserves, contingent resources and estimates of future net revenue is disclosed in the MCR 
available under IPC’s profile on www.sedarplus.ca and on IPC’s website at www.international-petroleum.com.
Boes may be misleading, particularly if used in isolation. A boe conversion ratio of 6 thousand cubic feet (Mcf) per 1 barrel (bbl) 
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 document:
Heavy Crude Oil 
(Mbopd)
Light and Medium 
Crude Oil (Mbopd)
Conventional Natural Gas
(per day)
Total
(Mboepd)
Three months ended
December 31, 2025 23.9 6.6 90.9 MMcf                     
(15.1 Mboe) 45.6
December 31, 2024 24.3 7.1 95.9 MMcf                     
(16.0 Mboe) 47.4
Year ended
December 31, 2025 23.6 6.4 89.6 MMcf                     
(14.9 Mboe) 44.9
December 31, 2024 23.9 7.7 95.1 MMcf                     
(15.8 Mboe) 47.4
This MD&A also makes reference to IPC’s forecast total average daily production of 44,000 to 47,000 boepd for 2026. IPC 
estimates that approximately 57% of that production will be comprised of heavy crude oil, approximately 12% will be comprised 
of light and medium crude oil and approximately 31% will be comprised of conventional natural gas.
40

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Management’s Discussion and Analysis
For the three months and year ended December 31, 2025
OTHER SUPPLEMENTARY INFORMATION
Currency Abbreviations
CAD  Canadian dollar
MCAD  Million Canadian dollar
EUR  Euro
MEUR  Million Euro
USD  US dollar
MUSD  Million US dollar
MYR  Malaysian Ringgit
MMYR  Million Malaysian Ringgit
Oil related terms and measurements
AECO   The daily average benchmark price for natural gas at the AECO hub in southeast Alberta                                                                            
AESO  Alberta Electric System Operator
API   An indication of the specific gravity of crude oil on the API (American Petroleum Institute) gravity scale
ASP   Alkaline surfactant polymer (an EOR process)
bbl   Barrel (1 barrel = 159 litres)
boe   Barrels of oil equivalents
boepd   Barrels of oil equivalents per day
bopd   Barrels of oil per day
Bcf  Billion cubic feet
C5  Condensate
CO2e  Carbon dioxide equivalents, including carbon dioxide, methane and nitrous oxide
Empress   The benchmark price for natural gas at the Empress point at the Alberta/Saskatchewan border
EOR   Enhanced Oil Recovery
FPSO  Floating Production Storage and Offloading (facility)
GJ  Gigajoules
Mbbl   Thousand barrels
MMbbl   Million barrels
Mboe   Thousand barrels of oil equivalents 
Mboepd   Thousand barrels of oil equivalents per day
Mbopd   Thousand barrels of oil per day
MMboe   Million barrels of oil equivalents
MMbtu   Million British thermal units
Mcf   Thousand cubic feet
Mcfpd  Thousand cubic feet per day
MMcf   Million cubic feet
MW  Mega watt
MWh  Mega watt per hour
NGL   Natural gas liquid
SAGD   Steam assisted gravity drainage
WTI   West Texas Intermediate
WCS   Western Canadian Select
41

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Management’s Discussion and Analysis
For the three months and year ended December 31, 2025
DIRECTORS
C. Ashley Heppenstall
Director, Chair
London, England
William Lundin
Director, President and Chief Executive Officer
Coppet, Switzerland
Chris Bruijnzeels
Director
Abcoude, The Netherlands
Donald K. Charter
Director
Toronto, Ontario, Canada
Lukas (Harry) H. Lundin
Director
Toronto, Ontario, Canada
Emily Moore
Director
Toronto, Ontario, Canada
Mike Nicholson
Director
Monaco
Deborah Starkman
Director
Toronto, Ontario, Canada
OFFICERS
William Lundin
President and Chief Executive Officer
Coppet, Switzerland
Christophe Nerguararian
Chief Financial Officer
Geneva, Switzerland
Nicki Duncan
Chief Operating Officer
Geneva, Switzerland
Jeffrey Fountain
General Counsel and Corporate Secretary
Geneva, Switzerland
Rebecca Gordon
Senior Vice President Corporate Planning and 
Investor Relations
Geneva, Switzerland 
Chris Hogue
Senior Vice President Canada
Calgary, Alberta, Canada
Ryan Adair
Vice President Asset Management and
Corporate Planning Canada
Calgary, Alberta, Canada
Curtis White
Vice President Commercial Canada
Calgary, Alberta, Canada
MEDIA AND INVESTOR RELATIONS
Robert Eriksson 
Stockholm, Sweden
CORPORATE OFFICE
Suite 2800, 1055 Dunsmuir Street Vancouver, 
British Columbia
V7X 1L2 Canada
Telephone: +1 604 689 7842
Website: www.international-petroleum.com
OPERATIONS OFFICE
5 Chemin de la Pallanterie
1222 Vésenaz
Switzerland
Telephone: +41 22 595 10 50
E-mail: info@international-petroleum.com
REGISTERED AND RECORDS OFFICE
Suite 3500, 1133 Melville Street 
Vancouver, British Columbia
V6E 4E5 Canada
INDEPENDENT AUDITORS
PricewaterhouseCoopers LLP , Canada
TRANSFER AGENT
Computershare Trust Company of Canada
Calgary, Alberta, and Toronto, Ontario
STOCK EXCHANGE LISTINGS
Toronto Stock Exchange and NASDAQ Stockholm 
Trading Symbol: IPCO
42

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International Petroleum Corporation
Suite 2800
1055 Dunsmuir Street
Vancouver, British Columbia
V7X 1L2, Canada
Tel: +1 604 689 7842
E-mail: info@international-petroleum.com
Web: international-petroleum.com□