Kolibri Global Energy (KEI & KGEIF in US) Update - May 12
Posted: Fri May 12, 2023 4:02 pm
I spent the afternoon updating my forecast/valuation and making what I believe are very conservative assumptions for their production volumes this year. This stock has a lot of potential for us, primarily because their horizontal well results in Oklahoma's SCOOP oil play have been very strong; exceeding their pre-drill type curves by a wide margin.
If you live in Houston, our luncheon on May 16th is one you definitely want to attend. I think KEI has the potential to meet or exceed the returns we've gotten on Hemisphere Energy and InPlay oil.
Kolibri is now completing three new wells that could significantly increase their production from the 3,194 Boepd they reported in Q1 2023. Plus, they have over 100 more low-risk / high-return horizontal development drilling locations in Oklahoma within their SCOOP leasehold that is now held-by-production. The fact that their more than 17,000 acres is all HBP makes it extremely valuable. It is rare for me to find a small-cap with this much running room and all of it HBP.
My updated forecast is based on the mid-point of the Company's production guidance for 2023. It shows earnings per share of $1.00US and operating cash flow of $1.58US per share. Those numbers could double next year with a one rig drilling program funded entirely by operating cash flow.
KEGIF closed at $3.30 US today. I now think their operating cash flow could exceed that in 2024.
I expect to see a lot of you at next Tuesday's luncheon.
If you live in Houston, our luncheon on May 16th is one you definitely want to attend. I think KEI has the potential to meet or exceed the returns we've gotten on Hemisphere Energy and InPlay oil.
Kolibri is now completing three new wells that could significantly increase their production from the 3,194 Boepd they reported in Q1 2023. Plus, they have over 100 more low-risk / high-return horizontal development drilling locations in Oklahoma within their SCOOP leasehold that is now held-by-production. The fact that their more than 17,000 acres is all HBP makes it extremely valuable. It is rare for me to find a small-cap with this much running room and all of it HBP.
My updated forecast is based on the mid-point of the Company's production guidance for 2023. It shows earnings per share of $1.00US and operating cash flow of $1.58US per share. Those numbers could double next year with a one rig drilling program funded entirely by operating cash flow.
KEGIF closed at $3.30 US today. I now think their operating cash flow could exceed that in 2024.
I expect to see a lot of you at next Tuesday's luncheon.