Kolibri Global Energy (KEI & KGEIF in US) Update - Mar 16

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dan_s
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Joined: Fri Apr 23, 2010 8:22 am

Kolibri Global Energy (KEI & KGEIF in US) Update - Mar 16

Post by dan_s »

NET PRESENT VALUE OF PROVED RESERVES INCREASED 43% TO US$515 MILLION

Thousand Oaks CALIFORNIA, March 13, 2023 – Kolibri Global Energy Inc. (the “Company” or “KEI”) (TSX: KEI), is providing the results of its December 31, 2022, independent reserves evaluation.

Wolf Regener, President and CEO, commented: “We are very pleased that the net present value of all categories of our reserves has significantly increased. Our Proved Developed Producing (“PDP”) reserves grew by over 69% as a result of the five wells that we drilled and completed last year, and the Net Present Value (“NPV”) of those reserves increased by 159%. Due to our successful development program, our percentage of PDP versus Total Proved reserves increased from 10% to 18%, and the estimated percentage of oil increased from 72% to 75% in the proved category.

Our Proved Reserves value of US$514.8 million (NPV discounted at 10%), which increased 43% from the 2021 independent reserves evaluation, demonstrates the value of our Tishomingo Field. This increase in value is attributed to higher type curves estimated by Netherland, Sewell & Associates, Inc. (“NSAI”), which increases the NPV of each well, as well as higher pricing. The higher type curves directly result from the excellent outcome of our 2022 drilling program.

We look forward to continuing our success with the start of our 2023 drilling program, which is beginning this week. We expect our drilling program, which currently includes drilling and completing six to seven wells, to continue to significantly increase the Company’s cash flow and add incremental value to our shareholders. Our 2023 drilling program may be modified later in the year once we have more visibility on prices and well performance.

Net Present Value of Reserves discounted at 10%

Total Proved Reserves before tax of U.S. $514.8 millio OR $13.98/share USD
- an increase of 43% over the December 31, 2021, estimate

Proved plus Probable Reserves before tax of U.S. $724.4 million or $19.87/Share USD an increase of 47% over the December 31, 2021, estimate

Proved plus Probable plus Possible Reserves before tax of U.S. $939.2 million or $25.90/share USD
- an increase of 46% over the December 31, 2021, estimate

The evaluation of the Company’s reserves in the Caney formation of the Tishomingo Field in the SCOOP area of Oklahoma was conducted by Netherland, Sewell & Associates, Inc. ("NSAI") in accordance with National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities.

As a result of the Company’s strong well performance, NSAI increased the expected ultimate recovery (“EUR’’) for most proved locations in the 2022 reserve report. However, for each section as a whole, where we drilled and completed wells in 2022, they left their EUR assumptions relatively unchanged from their 12/31/21 reserve report for the sum total of the wells and the well locations in the respective section. This resulted in them assigning a lower Proved EUR to the remaining well locations in those sections, as the already drilled and producing wells are projected to recover more oil and gas than NSAI’s average proved type curve. Management believes that more production history is needed for NSAI to move the Probable and Possible reserves assigned to those well locations into the Proved category.

We are pleased to report that, to date, all the 2022 wells are producing above the 12/31/22 NSAI Proved type curve.


2022 Gross Reserves Summary

Total Proved Reserves 33.3 million Barrels of oil equivalent (BOE)
- a decrease of 2% over the December 31, 2021, estimate

Proved plus Probable Reserves 54.4 million BOEs
- an increase of 2% over the December 31, 2021, estimate

Proved plus Probable plus Possible Reserves 77.5 million BOEs
- an increase of 2% over the December 31, 2021, estimate

The above total Proved reserves are attributed to 23 of the Caney wells already drilled, four Woodford wells (4.9% working interest for the Company), and the drilling of 51.96 net additional wells over the next four years. The Probable reserves are attributed to the drilling of 29.89 net additional wells. The wells in NSAI’s 2022 report are planned at 107-acre spacing (6 wells per section) on approximately 14,350 net acres.
Dan Steffens
Energy Prospectus Group
dan_s
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Joined: Fri Apr 23, 2010 8:22 am

Re: Kolibri Global Energy (KEI & KGEIF in US) Update - Mar 16

Post by dan_s »

Register at this link to join Kolibri's webcast set for Thursday, March 16 at 1PM CT
https://us02web.zoom.us/webinar/register/WN_QGXt59fPSVSe0rkvhiNIvQ

Kolibri Global Energy Inc. Investor Update

Description
Please join Wolf Regener CEO and Gary Johnson CFO for Kolibri Global Energy Inc Year end, budget and 2022 updated reserve report webinar with Adelaide Capital. on March 16 at 2pm. . The Company's shares are traded on the Toronto Stock Exchange under the stock symbol KEI and on the OTCQX under the stock symbol KGEIF.

Koilibri has been one of the best growth stories of 2022, exiting the year over 4,000boepd on a forecast of 2,700 boepd. KEI is operating in Oklahoma, drilling the Caney Shale. Their outperformance has been a result of their continued improvement in drilling and their latest generation of their new completion technique on the five wells drilled last year, which outperformed their type curve by more than 40%. They have 55 more proven locations to drill, with drilling expected to restart this week.

The company has been underfollowed from a research perspective and is trading at a discount to their 1P NPV 10 value of US$10.07/share. The Company is expecting further production and reserve growth for 2023.

Time
Mar 16, 2023 02:00 PM in Eastern Time (US and Canada)
Dan Steffens
Energy Prospectus Group
ChuckGeb
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Joined: Thu Nov 21, 2013 2:46 pm

Re: Kolibri Global Energy (KEI & KGEIF in US) Update - Mar 16

Post by ChuckGeb »

Look forward to the call of this promising rising star. Would be good to know the pricing used in their reserve report. Undoubtedly it is SEC that would be biased to higher prices than strip. I guess we'll find out on Thursday.
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