Kolibri Global - Bank Line Increase, Russell 2000 Inclusion and Operations Update

[Petroleum economist]

Jun 25, 2025 THOUSAND OAKS, Calif. – Kolibri Global Energy Inc. (the “Company” or “Kolibri“) (TSX: KEI, NASDAQ: KGEI) is pleased to announce the following:

CREDIT FACILITY
The available borrowing base of the Company’s indirect wholly owned subsidiary, Kolibri Energy US Inc., was increased from US$50 million to US$65 million on its revolving line of credit (“Credit Facility“). This was a 30% increase on the Credit Facility which is held by a bank syndicate which is led by BOK Financial (“BOKF“) and now includes Arvest Bank. All other terms of the credit facility remain the same. The current outstanding amount drawn on the Credit Facility is US$30.5 million.

RUSSELL 2000
Kolibri is expected to be included in the Russell 2000 Index at the conclusion of the 2025 Russell Indexes Annual Reconstitution, according to a preliminary list of additions posted by FTSE Russell on June 20, 2025. The inclusion in the index will take effect after the U.S. market opens on June 27, 2025.

Membership in the Russell 2000 Index, which remains in place for one year, includes inclusion in the appropriate growth and value style indexes. FTSE Russell is a leading global index provider and membership for its Russell indexes is determined primarily by objective, market-capitalization rankings, and style attributes.

Russell indexes are widely used by investment managers and institutional investors for index funds and as benchmarks for active investment strategies. As of May 2025, approximately $10.6 trillion in assets are benchmarked to a Russell index. Reference information on the reconstitution process, including member additions and deletions, can be found at: www.lseg.com/en/ftse-russell/russell-reconstitution.

OPERATIONS UPDATE
The Lovina 9-16-1H, Lovina 9-16-2H, Lovina 9-16-3H, and Lovina 9-16-4H wells (100% working interest) are currently being fracture stimulated. The completion operations are proceeding well, even though they were off to a slower than anticipated start due to the heavy rains, which caused flooding and other issues earlier in the month. The wells are anticipated to begin production in July.

The Forguson 17-20-3H well has been successfully drilled and will be fracture stimulated after the Lovina wells have been completed. Kolibri is operator and has a 46% working interest in this well, which is testing the economics of the Company’s eastern acreage which is comprised of 3,000 acres.

Wolf Regener, President and CEO, commented, “We are very pleased to have BOKF’s continued support and appreciate the new support from Arvest Bank, who joined the syndicate. The 30% increase in our borrowing base provides us with more working capital flexibility and supports our production and cash flow growth initiatives and continues to demonstrate the value of the field.

“We are also excited that inclusion in the Russell 2000 index will further improve the visibility of our Company among investors. This is a significant milestone for us, which we believe is a result of our successful efforts to increase shareholder value.

“The fracture stimulation of the four Lovina wells is progressing well and we are looking forward to the completion of these wells and the Forguson well.

“The east side acreage, where the Forguson well is located and Kolibri has approximately 3,000 net acres, is not included in the December 31, 2024 reserve report. The Caney target for the Forguson well has very similar characteristics and thickness as in the main part of the field in Kolibri’s proved acreage, except that it is shallower. If the Forguson well proves to be economic, in addition to adding cash flow, it could lead to many additional development locations for the Company.

“We are looking forward to the additional production from all of these wells, which we expect will significantly increase the Company’s cash flow. We believe our 2025 drilling program, as well as the continuation of our normal course issuer bid share buyback program, will continue to add incremental value to our shareholders.”

Observations on above:
• The increase in the credit facility is logical. With a 100% share of the four Lovina wells being drilled and a 46% share in the Forguson well capex in Q2 will be $ 24-26 M. With current oil prices operational cash flow will be about $ 8 M, leaving a Q2 negative free cash flow of $ 16-18 M, thus creating a need for additional cash. With increased production and low capex in Q3, and limited capex in Q4, Kolibri should be able to repay the increase in the credit facility before the end of 2025.
• The inclusion in the Russell 200 is positive and should lead to an increased trading volume.
• The delays in the well fracturing do not have a lot of impact. IP30 well results now should come available in early/mid-August.
• The new wells potentially can double Kolibri production in Q3.

Kolibri Global tops my rankings.

[dan_s]

If the four Lovina wells are as good as the average Alica Renee HZ wells, my valuation of KGEI will be going a lot higher.

Lovina well results might be leaking out today. KGEI up 19% on heavy volume this afternoon.

[Cliff_N]

Any insights on why KGEI is down over 11% today, with volume almost over 3X the average at 35 minutes into the market, says the big boys and girls are leaving the room.

[dan_s]

No news, but lots of the upstream stocks are down despite WTI being up more than $1/bbl today. Lots of confused investors that seem to be over-reacting to the OPEC+ quota increase.

We will not know how good the four horizontal Lovina wells are until they have been online for ~30 days.
These wells are being fracked, so it takes several weeks before all of the frac water is returned and we know how much oil & gas will be produced.

All I know is that the well logs on the four Lovina wells were as good or better than the logs on the three Alica Renee wells.

Take a look at the 5-day chart and you will see that the share price spiked way up on July 2, even though there was no news.

[Petroleum economist]

Kolibri Global is a small cap. Even a moderate size order (say 30-40 K shares) at the opening can cause the share price to collapse and induce a lot of uncertainty in the market.
The number of shares traded today after 5 hours was 721 K or 2% of the total (35.7 M). Noticeable, but not overwhelming.

I am not worried about the Lovina results:
- Production in Q4 2024 was 4.4 K BoE/d.
- If the IP30 production rates of the Lovina wells would match the 2024 Alicia Renee wells for the full 100% (IP30 = 950 K BoE/d/well), then Q4 2025 production could reach 9.2 K BoE/d.
- If the IP30 rates of the Lovina wells would be 80% of the Alicia Renee wells then the Q4 production could be 8.2 K BoE/d.
- If the IP30 rates of the Lovina wells would be 60% of the Alicia Renee wells then the Q4 production still can reach 7.2 K BoE/d.

Under the 80-100% scenario, Kolibri sits at the top of the ranking. With 60% of the Alicia Renee well rates, Kolibri drops to the 6th position but still is a great proposition.

I am struggling to see a real downside scenario for Kolibri.
Great proven reserves and remember the upside from the Ferguson well.