Kolibri Global Energy (KEI & KGEI in US) Update - Oct 19

[dan_s]

I confirmed a few things today.
> By mid-November they will complete three more horizontal wells (The Emery Pad). 2 Lower Caney and 1 T-Zone.
> The T-Zone well completed a few months ago is doing quite well. The T-Zone is consistent throughout the Companies acreage (over 17,000 acres). The new well completion method is working, and the T-Zone has SIGNIFICANT UPSIDE for this small-cap.
> Also, focusing primarily on the Lower Caney should ramp up production faster in 2024.
> By the end of November, they will have 29 total wells on production and one more to be drilled in December and completed in January.
> The gathering system / over-heating compressors problems that limited oil production in Q3 have been resolved. The Company's production guidance is 2,850 Boepd in Q3, a small increase over Q2 and 4,540 Boepd in Q4.
> 2023 production exit rate should be at or above the midpoint of their guidance (5,000 to 6,000 Boepd).
> 2023 capex program was 8 new HZ wells, including the one being drilled in December.
> They have not announced a 2024 drilling program, but if WTI stays over $80/bbl, Kolibri will have enough operating cash flow to fully fund a 12 well program next year. A 12 well program should push production over 7,500 Boepd by the end of 2024 with a clear path to 10,000 Boepd by the end of 2025. < 100% funded by operating cash flow.

Kolibri is heavily weighted to oil. Crude oil is 73% of 2023 production.
Their oil currently sells at a $1.50 discount to WTI, which is net of gathering and transportation expenses.

My updated forecast/valuation model for KGEI has been posted to the EPG website home page. My valuation increases by $4.75 to $13.25

PS: The uplisting to Nasdaq is a BIG DEAL.

[tlengoc]

Here is the latest YT video from Adelaide Capital discussing with KEI regarding their Nasdaq Listing KGEI and 2024 Goals.

https://youtu.be/OZj185WC-hw