Kolibri Global Energy Inc. Operations Update and Initial Flow Rates Barnes 7-4H & 7-5H Wells
Kolibri Global Energy Inc. (KEI) is thrilled to share an update on its operations at the Tishomingo field in Oklahoma. The company is pleased with the initial flow rates of its Barnes 7-4H and 7-5H wells, which have been producing higher rates than previous wells in the Caney formation. These two wells are part of the second group of down-spaced wells in the Caney, drilled at a 6-well per section spacing pattern.
The Barnes 7-4H well has averaged 686 Barrels of oil equivalent per day (BOEPD), with 534 barrels of oil per day (BOPD), while the Barnes 7-5H well has averaged 624 BOEPD, with 472 BOPD. These promising results demonstrate the potential for increased production and reserves in the Tishomingo field.
In terms of drilling and completion operations, KEI has completed drilling the Emery 17-3H and 17-4H wells and is currently drilling the Emery 17-5H. The Emery 17-3H and 17-5H are Lower Caney formation wells, while the Emery 17-4H is a T-Zone well. Completion operations for all three wells are expected to commence in the first week of November.
Wolf Regener, President and CEO of KEI, expressed excitement about the performance of the new Lower Caney wells and the upcoming wells in the Emery area. The company is eager to increase production and demonstrate the repeatability of production from the T-zone. KEI is also planning to spud the next set of wells in December for production in early 2024.
Regarding the field update, KEI has resolved most of the gathering system issues that were previously reported. The company has requested some additional optimization to further improve its production.
KEI has also provided an update on its annual forecasted guidance for 2023. The revised forecast includes an increased exit rate production of 5,000 to 6,000 BOEPD, representing a 25% to 50% increase from the previous year. The average production is expected to range from 3,100 to 3,400 BOEPD, showing significant growth compared to 2022. The revenue is projected to be between US$57 million to US$62 million, with adjusted EBITDA ranging from US$45 million to US$50 million.
While the guidance has been revised lower from the initial forecast due to various factors, including timing issues and gathering system impacts, KEI remains optimistic about its growth prospects. The company expects annual capital expenditures to be in the range of US$51 million to US$56 million, with net debt projected to be US$24 million to US$26 million. KEI aims to maintain a debt to adjusted EBITDA ratio of less than 1 times by the end of 2023.
Exciting news awaits KEI as it anticipates its shares to begin trading on the Nasdaq Stock Market on October 11th, 2023, under the symbol “KGEI.” This dual listing will provide increased visibility and access to a broader investor base.
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. With its technical and operational expertise, the company continues to identify and acquire additional projects to drive future growth. KEI’s shares are traded on the Toronto Stock Exchange under the symbol KEI and on the OTCQX under the symbol KGEIF.