Kolibri Global Energy (KEI & KGEIF) Valuation Update - Aug 4

[dan_s]

I was on a conference call with Kolibri this morning and I have updated my forecast/valuation model for their Q2 results that came in below my forecast, but production is expected to ramp up sharply as five more high-rate horizontal wells will be completed soon. Two new wells will be completed in the lower Caney where they are getting the highest production rates by end of Q3. Three more wells will be completed by mid-Q4, two in the Caney and one in the T-zone. Production should peak over 5,000 Boepd in December.

Wolf said a 10-12 well drilling program is possible for 2024, especially if WTI moves over $90/bbl. They are committed to fund all capex with operating cash flow.

For now, my valuation stays at $9.00US per share, but I expect their year-end PV10 Net Asset Value to be much higher.

My updated forecast model has been posted to the EPG website.