Kolibri Global Energy (KEI & KGEIF in US) Update - Apr 6

[dan_s]

I just posted my updated profile and forecast model on KEI to the EPG website.

Kolibri hosted a webinar for us back on December 1, 2022. After that event, I came away with the opinion that this small-cap was a "Screaming Takeover Target". It has a large block of leasehold in Central Oklahoma that is all held by production (HBP) because of deep gas wells operated by Exxon and the potentially recoverable oil reserves in the shallow zones retained by Kolibri (see page 11) are HUGE.

Take a look at the six-month stock price chart for KEI.TO and you will see that the share price more than doubled over the two months after our webinar, primarily because they announced production results from three new wells completed using a new method in the Caney zone. The share price has pulled back (from $7.57 to $5.11) to a good entry price.

They will soon be announcing results of their first three horizontal wells in this year's program. If their 2023 wells come on as strong as the three wells discussed on page 7, this stock has a lot more upside than my current valuation ($11.00Cdn) because they hold over 180 more horizontal drilling locations in the Tishomingo Oilfield shown on page 2. Key to an even higher valuation is the T-Zone test well, which could double Kolibri's recoverable reserves.

Kolibri will be hosting a Houston luncheon for us on May 16th.