i3 Energy Targets 13.94 then 15.7 #i3e

· Q1 2021 average production of 8,856 boepd, outperforming expectations

· Financial discipline maintained, with an initial hedging strategy implemented and 2021 full-year net operating income expectations increased to CAD 38mm (USD 31mm)

· Significant initiatives in the Clearwater play

o Planning for an appraisal and development drilling programme at Marten Creek following successful oil appraisal recompletions

o i3 has farmed into additional Clearwater acreage and will earn up to 29.4 km2 through drilling activity, with the first two wells of a potential nine-well commitment being spud at Marten Hills in May

o Acquisition of additional 17.9 km2 of Clearwater acreage through recent Alberta Crown Land Sale

· Noel gas well expected to be on production during June

· EGM to approve dividend expected to be called shortly

Comment:

The final confirmation hearing in the High Court of Justice of England and Wales was held yesterday and the court approved the cancellation of i3 Energy's share premium account (the "Capital Reduction"). The court order together with the court approved statement of capital has been delivered to the Registrar of Companies and the Capital Reduction will finally become effective upon the registration of the court order by the Registrar of Companies, which is expected to occur in the next few days. The Ex-dividend date, Record Date and Payment Date will be announced immediately following confirmation of the registration. With the predicted timing of the above registration by the Registrar of Companies, i3 expects the Ex-dividend date to be during the week commencing 12 July 2021.

Previously announced as a letter of intent on 17 June 2021, the Company has now executed a binding sales and purchase agreement to acquire 230 boe/d of Wapiti production, a non-core asset to the seller, whereafter i3 intends to conduct six well reactivations to bring Next Twelve Months ("NTM") production to an estimated 310 boe/d at a total acquisition and capital cost of USD 410k, which translates to an acquisition cost of only 0.56x expected NTM net operating income (revenue minus royalties, opex, transportation and processing). This production acquisition is expected to complete in early Q3 2021, with a 1 April 2021 effective date.

Comment:

Operational Update

i3 Energy plc (AIM:I3E) (TSX:ITE), an independent oil and gas company with assets and operations in the UK and Canada, is pleased to announce the following update.

Production Update - Q2 2021

Production in the second quarter averaged 9,142 boepd, which included the impact of routine facility maintenance on third-party facilities. Production since the start-up of the Noel well on June 17 has averaged 9,353 boepd.

Clearwater Drilling

The Marten Hills 01-12-075-26W4 well was spud on 15 June 2021, targeting the 25m thick Clearwater C sandstone, and finished drilling on 30 June 2021 to a maximum true vertical depth of 630m. Eight horizontal lateral sections, for a total of 13,057m in length penetrating the reservoir, were successfully drilled from this wellbore with operations having progressed on time and on budget. All laterals drilled have encountered a clean upper shoreface sandstone, with porosities ranging from 24% to 27%, and oil has been evidenced throughout by oil shows on cuttings. The rig has been moved to, and now spud, the second well in this Marten Hills Clearwater drilling programme at 02-12-075-26W4, with drilling expected to finish mid-July. Tie-in and equipping of the wells is expected to take five days following rig release, with production from both wells anticipated to commence in late July.