Kolibri Global Energy Inc. (the “Company” or
“Kolibri”) (TSX: KEI, NASDAQ: KGEI) is pleased to provide an
update on its latest wells in its Tishomingo field in Oklahoma and
its preliminary inclusion in the Russell US reconstitution
portfolio.
Initial Flow Rates
The Nickel Hill 35-1H & 35-2H wells have been successfully
drilled and completed in the Caney Formation. Over the last seven
days, the Nickel Hill 35-1H well has averaged 472 Barrels of oil
equivalent per day (“BOEPD”) (369 barrels of oil per day (“BOPD”)),
and the Nickel Hill 35-2H well has averaged 478 BOEPD (379 BOPD).
The wells are still cleaning up and are currently producing about
510 BOEPD (397 BOPD) and 529 BOEPD (419 BOPD), respectively.
Kolibri owns a 62.9% working interest in both of the Nickel Hill
wells, which were drilled at a 6-well per section spacing
pattern.
Russell Microcap Index
On May 31, 2024, FTSE Russell, announced that the preliminary
Russell US reconstitution portfolio included the addition of
Kolibri Global Energy Inc. into the Russell Microcap Index. The
newly reconstituted index will take effect after the market close
on June 28, 2024.
Membership in the Russell Microcap 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 December 2023, approximately
$10.5 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.
Wolf Regener, President and CEO, commented, “We are very pleased
that these latest two Caney wells are performing so well. The early
production results indicate both wells to be very economic. In
addition, I’m proud that our team once again drilled and completed
these wells safely and under budget.
“We are also excited that our inclusion in the Russell Microcap
Index will further improve the visibility of our company among
investors. Our strategy is to continue to organically grow the
Company by increasing production and adjusted EBITDA utilizing our
existing cash flow and managing working capital with the $50
million available borrowing capacity from our existing credit
facility.“
About Kolibri Global Energy Inc.
Kolibri Global Energy Inc. is a North American energy company
focused on finding and exploiting energy projects in oil and gas.
Through various subsidiaries, the Company owns and operates energy
properties in the United States. The Company continues to utilize
its technical and operational expertise to identify and acquire
additional projects in oil, gas and clean and sustainable energy.
The Company's shares are traded on the Toronto Stock Exchange under
the stock symbol KEI and on the NASDAQ under the stock symbol
KGEI.
Cautionary Statements
In this news release and the Company’s other public disclosure:
The references to barrels of oil equivalent ("Boes") reflect
natural gas, natural gas liquids and oil. Boes may be misleading,
particularly if used in isolation. A Boe conversion ratio of 6
Mcf:1 Bbl is based on an energy equivalency conversion method
primarily applicable at the burner tip and does not represent a
value equivalency at the wellhead. Given that the value ratio based
on the current price of crude oil as compared to natural gas is
significantly different from the energy equivalency of 6:1,
utilizing a conversion on a 6:1 basis may be misleading as an
indication of value. Possible reserves are those additional
reserves that are less certain to be recovered than probable
reserves. There is a 10% probability that the quantities actually
recovered will equal or exceed the sum of proved plus probable plus
possible reserves.
Readers should be aware that references to initial production
rates and other short-term production rates are preliminary in
nature and are not necessarily indicative of long-term performance
or of ultimate recovery. Readers are referred to the full
description of the results of the Company's December 31, 2023
independent reserves evaluation and other oil and gas information
contained in its Amended and Restated Form 51-101F1 Statement of
Reserves Data and Other Oil and Gas Information for the year ended
December 31, 2023, which the Company filed on SEDAR on March 25,
2024.
Caution Regarding Forward-Looking Information
Certain statements contained in this news release constitute
"forward-looking information" as such term is used in applicable
Canadian securities laws and “forward-looking statements” within
the meaning of United States securities laws (collectively,
“forward looking information”), including statements regarding the
timing of and expected results from planned wells development,
including anticipated increases in production, revenue and adjusted
EBITDA. Forward-looking information is based on plans and estimates
of management and interpretations of data by the Company's
technical team at the date the data is provided and is subject to
several factors and assumptions of management, including that
indications of early results are reasonably accurate predictors of
the prospectiveness of the shale intervals, that required
regulatory approvals will be available when required, that no
unforeseen delays, unexpected geological or other effects,
including flooding and extended interruptions due to inclement or
hazardous weather conditions, equipment failures, permitting delays
or labor or contract disputes are encountered, that the necessary
labor and equipment will be obtained, that the development plans of
the Company and its co-venturers will not change, that the offset
operator’s operations will proceed as expected by management, that
the demand for oil and gas will be sustained, that the price of oil
will be sustained or increase, that the gathering system issues
will be resolved, that the Company will continue to be able to
access sufficient capital through cash flow, debt, financings,
farm-ins or other participation arrangements to maintain its
projects, and that global economic conditions will not deteriorate
in a manner that has an adverse impact on the Company's business,
its ability to advance its business strategy and the industry as a
whole. Forward-looking information is subject to a variety of risks
and uncertainties and other factors that could cause plans,
estimates and actual results to vary materially from those
projected in such forward-looking information. Factors that could
cause the forward-looking information in this news release to
change or to be inaccurate include, but are not limited to, the
risk that any of the assumptions on which such forward looking
information is based vary or prove to be invalid, including that
the Company or its subsidiaries is not able for any reason to
obtain and provide the information necessary to secure required
approvals or that required regulatory approvals are otherwise not
available when required, that unexpected geological results are
encountered, that equipment failures, permitting delays, labor or
contract disputes or shortages of equipment, labor or materials are
encountered, the risks associated with the oil and gas industry
(e.g. operational risks in development, exploration and production;
delays or changes in plans with respect to exploration and
development projects or capital expenditures; the uncertainty of
reserve and resource estimates and projections relating to
production, costs and expenses, and health, safety and
environmental risks, including flooding and extended interruptions
due to inclement or hazardous weather conditions), the risk of
commodity price and foreign exchange rate fluctuations, that the
offset operator’s operations have unexpected adverse effects on the
Company’s operations, that completion techniques require further
optimization, that production rates do not match the Company’s
assumptions, that very low or no production rates are achieved,
that the gathering system operator doesn’t get the issues resolved,
that the price of oil will decline, that the Company is unable to
access required capital, that occurrences such as those that are
assumed will not occur, do in fact occur, and those conditions that
are assumed will continue or improve, do not continue or improve,
and the other risks and uncertainties applicable to exploration and
development activities and the Company's business as set forth in
the Company's management discussion and analysis and its annual
information form, both of which are available for viewing under the
Company's profile at www.sedar.com, any of which could result in
delays, cessation in planned work or loss of one or more leases and
have an adverse effect on the Company and its financial condition.
The Company undertakes no obligation to update these
forward-looking statements, other than as required by applicable
law.
Caution Regarding Future-Oriented Financial Information and
Financial Outlook
This news release may contain information deemed to be
“future-oriented financial information” or a “financial outlook”
(collectively, “FOFI”) within the meaning of applicable securities
laws. The FOFI has been prepared by management to provide an
outlook of the Company’s activities and results and may not be
appropriate for other purposes. The FOFI has been prepared based on
a number of assumptions including the assumptions discussed above
under “Caution Regarding Forward-Looking Information”. The actual
results of operations of the Company and the resulting financial
results may vary from the amounts set forth herein, and such
variations may be material. The Company and management believe that
the FOFI has been prepared on a reasonable basis, reflecting
management’s best estimates and judgments. FOFI contained in this
news release was made as of the date of this news release and the
Company disclaims any intention or obligations to update or revise
any FOFI contained in this news release, whether as a result of new
information, future events or otherwise, unless required pursuant
to applicable law.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240603748801/en/
Wolf E. Regener +1 (805) 484-3613 Email:
wregener@kolibrienergy.com Website: www.kolibrienergy.com
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