I3 Energy Regulatory News (I3E)

4 January 2024

i3 Energy plc

("i3", "i3 Energy", or the "Company")

Publication of 2022 ESG Report

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 publication of its 2022 ESG report on its website (www.i3.energy).

Highlights of 2022 Environment, Social and Governance (ESG) Report

Emissions Reduction Initiatives

· i3 is committed to being net zero for Scope 11 and Scope 22 emissions for its operated assets by 2050, with accelerated targets to be set following additional pathways analysis.

· Since 2021, during which period the scope and scale of i3's operations grew significantly and production by 23%, the Company managed to achieve a 4% reduction in its Scope 1 and Scope 2 emissions.

· Continued the successful efforts to reduce methane emissions - completed the replacement of the Company's entire inventory of hi-bleed pneumatic controllers with low bleed or instrument air and commenced the replacement of 400 pneumatic pumps on the assets acquired from Cenovus with solar powered electric pumps; once complete these initiatives in aggregate will reduce annual methane emissions by an estimated 64,600 tCO2e3, which is equivalent to circa 28% of the Company's total CO2e emissions in 2022.

· Commenced electrification of well pumpjacks, completing 30 conversions in 2022 at the Company's Carmangay and Retlaw properties, reducing emissions by 6,366 tCO2e annually.

· Reduced emissions from the Company's extensive fleet of compressor engines by installing air-to-fuel gas gauges to optimise fuel efficiency and engine performance and converting rich burn engines to lean burn engines.

Emissions Reporting

· GHG Scope 1 and Scope 2 total emissions intensity for 2022 was 41 KgCO2e/boe, a 4% reduction on the 2021 level and below the average for Canadian conventional oil production and gas production and processing of 48.14 kgCO2e/bbl and 42.04 kgCO2e/boe, respectively.

· In 2022 commenced an alternative Fugitive Emissions Management Programme (launched in 2023), which uses a crewed aircraft equipped with laser technology to image methane emissions from the air, allowing more rapid and efficient repair operations, which could reduce fugitive methane leakage by more than 10% across our operations.

· Invested in software to optimise field process data acquisition to proactively detect and repair leaks, track fugitive emissions, and enhance reporting. When fully implemented across the Company's portfolio the software will assist in further reducing emissions.

Environment

· i3 operates in jurisdictions with environmentally responsible operating contexts and world class regulations for all aspects of ESG, with currently circa 77% of its production being gas and natural gas liquids.

· Abandonment and reclamation are ongoing activities, and in 2022, 70 wells were abandoned, 37 well sites were decommissioned and 9 reclamation certificates were received.

· The Company had 4 reportable spills in 2022 (a 53% reduction from 2021), all of which were rapidly cleaned up and remediated.

Social

· Safety is a top priority for i3; there were no employee loss time injuries and only 2 contractor loss time injuries in 2022.

· The Company is proud of its gender diversity with 26% of employees being women.

· i3 has an ongoing program of support, via charitable donations, to the communities in which it operates.

Governance

· Established i3 Energy's ESG committee which reports to the CEO and comprises a multidisciplinary team of senior leadership and subject matter experts across the organisation, tasked with assessing and recommending policies, programs and practices that promote the Company's ESG goals and long-term sustainability strategy.

· Established ESG-linked Key Performance Indicators (KPIs) as well as monitoring leading and lagging indicators of safety.

Majid Shafiq, CEO of i3 Energy plc, commented:

"Since 2021, during which period the scope and scale of our operations grew significantly and our production by over 23%, we are very proud to say that multiple initiatives and Company-wide efforts have managed to reduce our Scope 1 and 2 emissions intensity by 4%, and our emissions intensity remains below the average of our peers operating in Alberta on a CO2e/boe basis. This achievement is down to the strong oversight of our ESG Committee, and especially to the skill, ingenuity, dedication and hard work of all our employees and the daily efforts of our operations teams in the office and at the field level. We look forward to the future with optimism, as we continue to responsibly grow a sustainable energy business serving the needs of the communities and countries in which we operate."

Footnotes:

1. Scope 1 - direct greenhouse gas emissions that occur from sources that are controlled or owned by an organisation (e.g., emissions associated with fuel combustion in boilers, furnaces, and vehicles).

2. Scope 2 - indirect greenhouse gas emissions associated with the purchase of electricity, steam, heat or cooling.

3. tCO2e is tons of CO2 equivalent per year.

4. Source: Canada's Greenhouse Gas and Air Pollutant Emissions Projections 2021. Published by Environment and Climate Change Canada,

ENDS

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Notes to Editors:

i3 Energy is an oil and gas Company with a low cost, diversified, growing production base in Canada's most prolific hydrocarbon region, the Western Canadian Sedimentary Basin and appraisal assets in the North Sea with significant upside.

The Company is well positioned to deliver future growth through the optimisation of its existing 100% owned asset base and the acquisition of long life, low decline conventional production assets.

i3 is dedicated to responsible corporate practices and the environment, and places high value on adhering to strong Environmental, Social and Governance ("ESG") practices.  i3 is proud of its performance to date as a responsible steward of the environment, people, and capital management.  The Company is committed to maintaining an ESG strategy, which has broader implications to long-term value creation, as these benefits extend beyond regulatory requirements.

i3 Energy is listed on the AIM market of the London Stock Exchange under the symbol I3E and on the Toronto Stock Exchange under the symbol ITE. For further information on i3 Energy please visit https://i3.energy