Kolibri Global Energy Inc. (the “Company” or
“KEI”) (TSX: KEI, OTCQX: KGEIF) is pleased to announce that
it has finished drilling the Brock 9-3H and Emery 17-2H wells and
it is currently drilling the Glenn 16-3H well in the Company’s
Tishomingo field in Oklahoma.
OPERATIONS
The Emery 17-2H and Brock 9-3H wells were drilled safely and
without incident to their intended target depth, and the drilling
operations for the Glenn 16-3H are progressing as expected. We have
encountered good oil and gas shows in both wells comparable to our
previously drilled corridor wells in the field and expect similar
results from the Glenn 16-3H well. The completion operations for
all three wells originally planned to start at the end of October
are delayed to mid-November when our contractor expects to be
finished with their prior job. All materials and other services
have already been sourced and are awaiting the frack equipment to
arrive on location.
The Emery 17-2H well will be fracture stimulated first, followed
by the fracture stimulations for the Brock 9-3H and Glenn 16-3H
wells, which are scheduled to be done concurrently. Production from
the Emery 17-2H well is now anticipated to begin in early December,
with production from the Brock 9-3H and Glenn 16-3H expected to
commence in late December.
UPDATED FORECAST
While our forecasted year-end exit production rate remains the
same at 2,700 boepd, we are revising our previously announced
forecast to factor in a lower oil price for the remainder of the
year and to reflect the later than expected completion of the
wells.
Revised
Forecast
% Increase from
Fiscal Year 2021
Exit rate production
2,700 boepd
192%
Forecasted average production
1,500 to 1,700 boepd
54% to 74%
Revenue(1)
$35 million to $37 million
134% to 147%
Adjusted Funds Flow(2)
$23 million to $25 million
250% to 281%
(1)
Assumptions include on forecasted
pricing from October 2022 through December 2022 of WTI US $85/bbl,
$6 Henry Hub and NGL pricing of $34/boe and includes the impact of
the Company’s existing hedges.
(2)
Adjusted funds flow is considered
a non-GAAP measure. Refer to the section entitled “Non-GAAP
Measures” of this news release.
Wolf Regener, President, and CEO commented, “We are pleased that
the drilling of the wells is progressing smoothly. Even though we,
along with much of our industry, are experiencing tightness in
materials and equipment availability, we still expect production to
commence from all three wells by the end of 2022. By putting these
wells on production in 2022, it allows these wells to be included
in our year-end reserve report.”
NON-GAAP MEASURES
Adjusted funds flow is not a measure recognized under Canadian
generally accepted accounting principles ("GAAP") and does
not have any standardized meaning prescribed by IFRS. Management of
the Company believes that adjusted funds flow is relevant for
evaluating returns on the Company's project as well as the
performance of the enterprise as a whole. Adjusted funds flow may
differ from similar computations as reported by other similar
organizations and, accordingly, may not be comparable to similar
non-GAAP measures as reported by such organizations. Adjusted funds
flow should not be construed as an alternative to net income, cash
flows related to operating activities, working capital or other
financial measures determined in accordance with IFRS, as an
indicator of the Company's performance.
An explanation of how adjusted funds flow provides useful
information to an investor and the purposes for which the Company’s
management uses adjusted funds flow is set out in the management's
discussion and analysis under the heading “Non-GAAP Measures” which
is available under the Company's profile at www.sedar.com and is
incorporated by reference into this news release.
Adjusted funds flow is calculated as cash from operating
activities excluding changes in non-cash operating working capital
and interest expense. The Company considers this a key measure as
it demonstrates its ability to generate funds from operations
necessary for future growth excluding the impact from short-term
fluctuations in the collection of accounts receivable and the
payment of accounts payable and financing costs.
The following is the reconciliation of adjusted funds flow to
the comparable financial measures disclosed in the Company’s
financial statements:
(US $000)
Three months ended June
30,
Six months ended June
30,
2022
2021
2022
2021
Cash flow from continuing operations
8,314
1,649
9,557
3,013
Change in non-cash working capital
113
(379)
1494
(443)
Interest expense(3)
187
195
385
404
Adjusted funds flow
8,614
1,465
11,436
2,974
(3)
Interest expense on long-term
debt excluding the amortization of debt issuance costs
About Kolibri Global Energy Inc.
Kolibri Global Energy Inc. is a North American energy company
focused on finding and exploiting energy projects in oil, gas, and
clean and sustainable energy. 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. 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.
Cautionary Statements
In this news release and the Company’s other public
disclosure:
- The Company's natural gas production is reported in thousands
of cubic feet ("Mcfs"). The Company also uses references to
barrels ("Bbls") and barrels of oil equivalent
("Boes") to reflect natural gas liquids and oil production
and sales. 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.
- Discounted and undiscounted net present value of future net
revenues attributable to reserves do not represent fair market
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.
- The Company discloses peak and 30-day initial production rates
and other short-term production rates. Readers are cautioned that
such production rates are preliminary in nature and are not
necessarily indicative of long-term performance or of ultimate
recovery.
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 and expected funding sources of, and expected results from,
planned wells development, projected total capital program budget
for all five of the Company’s 2022 wells, and forecasted results of
the Company’s operations with respect to production, revenue,
adjusted funds flow.
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 $85 a barrel oil
price, $6 Henry Hub and NGL pricing of $34 bbl cost inflation of
over 20% for the three remaining wells planned for 2022, work and
operations in the Company’s 2022 drill program being completed on
schedule, future operating costs, forecast prices and costs,
estimated production, capital and other expenditures, plans for
expected results of drilling activity, that anticipated results and
estimated costs will be consistent with management’s expectations,
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 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 or 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 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 concessions 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/20221024005366/en/
For further information, contact: Wolf E. Regener +1
(805) 484-3613 Email: wregener@kolibrienergy.com Website:
www.kolibrienergy.com
Kolibri Global Energy (TSX:KEI)
Gráfica de Acción Histórica
De Dic 2024 a Ene 2025
Kolibri Global Energy (TSX:KEI)
Gráfica de Acción Histórica
De Ene 2024 a Ene 2025
