Kolibri Global Energy Inc. Announces Operations and Corporate Update
The Nickel Hill 35-1H well had a thirty-day production rate of 495 Barrels of oil equivalent per day (“BOEPD”) (376 barrels of oil per day (“BOPD”)), and the Nickel Hill 35-2H well had a thirty-day production rate of 511 BOEPD (400 BOPD). 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 with a one-mile lateral length. These well locations were listed as Possible reserves on Kolibri’s latest reserve report. By drilling these economic wells, we have added Proved reserves which should positively impact the next reserve report.
The Company anticipates beginning drilling the next three wells in four to five weeks. These wells will be the Alicia Renee 2-11-3H,
Kolibri has recently completed a study of the most economic and efficient future development plan for the field. The conclusion of the study was that drilling longer lateral lengths would benefit the development of most areas of the field. These longer laterals, which are expected to be either 1.5 or 2 miles in length, are projected to further improve the economics of the field.
New Guidance
The Company is updating its forecasted guidance for 2024 as follows:
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2024 Forecast |
% Increase from 2023 Actuals |
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Average production |
3,200 to 3,700 boepd |
14% to 33% |
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Revenue(1) |
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13% to 23% |
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Adjusted EBITDA(2) |
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10% to 23% |
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Capital expenditures |
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Net Debt(3) |
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Debt to EBITDA Ratio |
Below 1.0 |
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(1) Assumptions include forecasted pricing for 2024 of WTI US |
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(2) Adjusted EBITDA is considered a non-GAAP measure. Refer to the section entitled “Non-GAAP Measures” of this news release. | ||||
(3) Net Debt is forecast to be |
Share buyback
Kolibri is considering initiating a share buyback program in the second half of 2024. The buyback program, which could potentially begin this quarter, would be subject to board approval, the Company’s application for a normal course issuer bid to the
NON-GAAP MEASURES
Adjusted EBITDA is not a measure recognized under IFRS and does not have any standardized meaning prescribed by IFRS. Management of the Company believes that Adjusted EBITDA is relevant for evaluating returns on the Company's project as well as the performance of the enterprise as a whole. Adjusted EBITDA 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 EBITDA 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 EBITDA provides useful information to an investor and the purposes for which the Company’s management uses Adjusted EBITDA 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.sedarplus.ca and is incorporated by reference into this news release.
Adjusted EBITDA is calculated as net income before interest, taxes, depletion and depreciation and other non-cash and non-operating gains and losses. The Company considers this a key measure as it demonstrates its ability to generate cash from operations necessary for future growth excluding non-cash items, gains and losses that are not part of the normal operations of the Company and financing costs. The following is the reconciliation of the non-GAAP measure Adjusted EBITDA:
(US |
Three months ended
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2024 |
2023 |
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Net income |
3,345 |
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7,896 |
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Depletion and depreciation |
3,894 |
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4,338 |
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Accretion |
45 |
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45 |
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Interest expense |
915 |
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485 |
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Unrealized (gain) loss on commodity contracts |
915 |
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(1,390 |
) |
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Share based compensation |
128 |
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18 |
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Other income |
(59 |
) |
(1 |
) |
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Income tax expense |
1,191 |
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- |
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Foreign currency loss |
- |
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5 |
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Adjusted EBITDA |
10,374 |
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11,396 |
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About
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
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
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/20240708776072/en/
For further information, contact:
Email: wregener@kolibrienergy.com
Website: www.kolibrienergy.com
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