Kolibri Global Energy (KEI & KGEIF) Valuation Update - July 7

[dan_s]

I have updated my forecast/valuation model for Kolibri and posted it to the EPG website.

KEI and KGEIF are were trading at $6.22Cdn and $4.63USD respectively when I posted this.

My current valuation increases by 0.67Cdn to $12.00Cdn and $9.00US.
> The three most recent horizontal wells are outstanding, coming online above the type curves. Q3 production s/b ~4,150 Boepd.
> The two Caney wells indicate that six wells per section is the proper spacing (time will tell).
> The T-Zone well is SIGNIFICANT because if the T-Zone can produce at high rates with the new completion "recipe" that zone could double KEI's recoverable oil reserves.
> They are drilling two more Caney horizontal wells this quarter that should be completed to sales by September and push Q4 production up to ~5,000 Boepd.
> If WTI oil prices firm up over $80/barrel by the end of Q3, I expect Kolibri to drill and complete two more Caney HZ wells in Q4. If so, they could have production up to 6,000 Boepd by year end and my forecast for 2024 will go much higher.
> Lower completed well costs and higher oil prices should allow Kolibri to fund a more aggressive drilling program in 2024 (10 to 12 HZ wells) with operating cash flow.

I cannot stress enough how significant it is that 99% of Kolibri's leasehold in Oklahoma is held by production. This enables them to have a flexible development drilling program that is FULLY FUNDED BY OPERATING CASH FLOW. It also makes the company a "Screaming Takeover Target".