Kolibri Global Energy (KEI & KGEIF in US) Update - Mar 9

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dan_s
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Joined: Fri Apr 23, 2010 8:22 am

Kolibri Global Energy (KEI & KGEIF in US) Update - Mar 9

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KGEIF is a recent addition to our Small-Cap Growth Portfolio. The Company's Q3 2022 production was 1,702 Boepd and by completing three more high-rate horizontal wells in the Caney zone during Q4, their exit rate was ~4,000 Boepd. You can expect this small-cap's production growth to be "lumpy" as they will be drilling several horizontal wells from a pad and then bringing in a completion crew to complete them at the same time. This is good business as it reduces the overall completed well costs.
Today, my 2023 production forecast is 5,000 Boepd. If this year's drilling program is more aggressive (say 12-15 new HZ wells), the 2023 exit rate could be close to 10,000 Boepd.
The leasehold they control in Central Oklahoma (over 17,000 acres all HBP) has room for 180 horizontal wells. At year-end 2022, ~60 locations were considered "proved" by the company.


KOLIBRI GLOBAL ENERGY INC. STARTS 2023 DRILLING PROGRAM

Based in Thousand Oaks, CALIFORNIA, with all oil & gas production in the Central Oklahoma SCOOP play


March 9, 2023 – Kolibri Global Energy Inc. (the “Company” or “KEI”) (TSX: KEI, OTCQX: KGEIF) is pleased to provide an update on its activities in its Tishomingo field in Oklahoma.

Start of the 2023 Drilling Program

The location has been built, and the surface pipe has been installed for the first three wells of our 2023 drilling program. The drilling rig started moving in yesterday and is expected to begin drilling in the middle of next week.

The Company’s first three wells of the 2023 drilling program will consist of two Caney wells, the Barnes 8-1H and Barnes 8-2H, at 6 wells per section spacing, and one “T-zone well”, the Barnes 8-3H. All three wells will be drilled from the same pad and are planned to be fracture stimulated simultaneously. The two Caney wells will be drilled in the heart of our corridor, similar to the five successful wells that we drilled in 2022.

The T-zone is located at the base of the Caney. A few of the Company’s earliest non-Woodford wells in the field were drilled in the T-zone using an old completion design and much smaller amounts of proppant. The best of these T-zone wells had a 30-day initial production rate (“IP30”) of 748 barrels of oil equivalent per day but had a decline rate that was higher than our Caney wells.

The Barnes 8-3H T-zone well will be completed with our latest generation completion design to evaluate whether a T-zone well can match the economics from our 2022 drilled Caney wells. If successful, T-zone wells have the potential to substantially increase the number of wells we can drill in this field and further add to our recoverable reserves.

Wolf Regener, President, and CEO commented, “We are excited to begin our 2023 drilling program and look forward to building on the tremendous success we had with our 2022 drilling program. Last year was a transformative year for the Company, where we significantly increased our production and cash flow and drilled wells that performed much better than the forecasted Type Curve. Our IP30 rates on the five wells drilled last year were over two times higher than the forecasted IP30 proved curve case utilized by our third-party engineering firm in our December 31, 2021, reserves report. We plan to fund our 2023 drilling program with our existing cash flow, with the potential of drawing down a portion of our outstanding credit facility to manage working capital.”

About Kolibri Global Energy Inc.

Kolibri Global Energy Inc. is a North American energy company focused on finding and exploiting energy projects in oil, gas, and clean and sustainable energy. Through various subsidiaries, the Company owns and operates energy properties in the United States. The Company continues to utilize its technical and operational expertise to identify and acquire additional projects. The Company's shares are traded on the Toronto Stock Exchange under the stock symbol KEI and on the OTCQX under the stock symbol KGEIF.
Dan Steffens
Energy Prospectus Group
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