Kolibri Global Energy (KEI & KGEIF in US) Valuation Update - Mar 16
Posted: Thu Mar 16, 2023 6:18 pm
I have adjusted my forecast/valuation model to agree with Kolibri's guidance for 2023, which looks extremely conservative to me.
KEI.TO closed today at $5.45Cdn. My valuation adjusts to $11.00Cdn, which translates to $8.25US for KGEIF.
This small-cap has a very strong balance sheet, is funding D&C capex entirely with operating cash flow and it has a lot of running room in the SCOOP oil play in Central Oklahoma (60 PUD drilling locations). Their current guidance is based on only drilling seven new horizontal wells this year. One well in the first three will be testing the T-Zone, which is under the Caney formation. If successful, it could significantly increase recoverable reserves and my stock valuation.
Per the Netherland Swell year-end reserve report, based on Canada's commodity price rules.
> P1 PV10 Net Asset Value is $19.53Cdn / $14.45US per share
> P2 PV10 Net Asset Value is $27.49Cdn / $20.34US per share
My updated forecast model has been posted to the EPG website. We will publish an update profile on Kolibri early in April.
The CEO will be coming to Houston to host a luncheon for us on May 16.
KEI.TO closed today at $5.45Cdn. My valuation adjusts to $11.00Cdn, which translates to $8.25US for KGEIF.
This small-cap has a very strong balance sheet, is funding D&C capex entirely with operating cash flow and it has a lot of running room in the SCOOP oil play in Central Oklahoma (60 PUD drilling locations). Their current guidance is based on only drilling seven new horizontal wells this year. One well in the first three will be testing the T-Zone, which is under the Caney formation. If successful, it could significantly increase recoverable reserves and my stock valuation.
Per the Netherland Swell year-end reserve report, based on Canada's commodity price rules.
> P1 PV10 Net Asset Value is $19.53Cdn / $14.45US per share
> P2 PV10 Net Asset Value is $27.49Cdn / $20.34US per share
My updated forecast model has been posted to the EPG website. We will publish an update profile on Kolibri early in April.
The CEO will be coming to Houston to host a luncheon for us on May 16.