Kolibri Global Energy (KEI & KGEIF in US) Update - May 12

[dan_s]

I spent the afternoon updating my forecast/valuation and making what I believe are very conservative assumptions for their production volumes this year. This stock has a lot of potential for us, primarily because their horizontal well results in Oklahoma's SCOOP oil play have been very strong; exceeding their pre-drill type curves by a wide margin.

If you live in Houston, our luncheon on May 16th is one you definitely want to attend. I think KEI has the potential to meet or exceed the returns we've gotten on Hemisphere Energy and InPlay oil.

Kolibri is now completing three new wells that could significantly increase their production from the 3,194 Boepd they reported in Q1 2023. Plus, they have over 100 more low-risk / high-return horizontal development drilling locations in Oklahoma within their SCOOP leasehold that is now held-by-production. The fact that their more than 17,000 acres is all HBP makes it extremely valuable. It is rare for me to find a small-cap with this much running room and all of it HBP.

My updated forecast is based on the mid-point of the Company's production guidance for 2023. It shows earnings per share of $1.00US and operating cash flow of $1.58US per share. Those numbers could double next year with a one rig drilling program funded entirely by operating cash flow.

KEGIF closed at $3.30 US today. I now think their operating cash flow could exceed that in 2024.

I expect to see a lot of you at next Tuesday's luncheon.

[dan_s]

KEI was previously known as BNK Petroleum, and previously made a large discovery in deeper intervals on the current KEI lands. Those intervals were sold to XOM for $147MM USD in 2013. Current land position is ~17,163 acres in the southern part of the Scoop play drilling the Caney Shale. Operators near Kolibri are COG, OVV, MRO,DVN and XOM amongst others. Over the last few years KEI focused on delineating their Caney land base, adding to reserves and perfecting their completion technique. Type Curve on previous wells 380 BOEPD (80% liquids) and EUR’s of 555K BOEPD. They completed their 5 wells in 2022, two drilled in March that came on between 600 BOEPD & 900 BOEPD 80% liquids. Currently, they have 185 locations at 6 wells per section, but this is just the start.

[dan_s]

I just found out that Wolf Regener is making a presentation in Toronto on Monday before flying to Houston to do our luncheon on Tuesday.

[tlengoc]

Here is the latest Kolibri Global Energy YT video with Adelaide Capital.

https://www.youtube.com/watch?v=eOIbImtdKrE