Kolibri Global Energy Inc. (the “Company” or
“KEI”) (TSX: KEI), is providing the results of its December
31, 2022, independent reserves evaluation.
Wolf Regener, President and CEO, commented: “We are very pleased
that the net present value of all categories of our reserves has
significantly increased. Our Proved Developed Producing (‘PDP’)
reserves grew by over 69% as a result of the five wells that we
drilled and completed last year, and the Net Present Value (‘NPV’)
of those reserves increased by 159%. Due to our successful
development program, our percentage of PDP versus Total Proved
reserves increased from 10% to 18%, and the estimated percentage of
oil increased from 72% to 75% in the proved category.
“Our Proved Reserves value of US$514.8 million (NPV discounted
at 10%), which increased 43% from the 2021 independent reserves
evaluation, demonstrates the value of our Tishomingo Field. This
increase in value is attributed to higher type curves estimated by
Netherland, Sewell & Associates, Inc. (‘NSAI’), which increases
the NPV of each well, as well as higher pricing. The higher type
curves directly result from the excellent outcome of our 2022
drilling program.
“We look forward to continuing our success with the start of our
2023 drilling program, which is beginning this week. We expect our
drilling program, which currently includes drilling and completing
six to seven wells, to continue to significantly increase the
Company’s cash flow and add incremental value to our shareholders.
Our 2023 drilling program may be modified later in the year once we
have more visibility on prices and well performance.
Net Present Value of Reserves discounted at 10%
- Total Proved Reserves before tax of U.S. $514.8 million
- an increase of 43% over the December 31, 2021, estimate
- Proved plus Probable Reserves before tax of U.S. $724.4 million
- an increase of 47% over the December 31, 2021, estimate
- Proved plus Probable plus Possible Reserves before tax of U.S.
$939.2 million
- an increase of 46% over the December 31, 2021, estimate
“The evaluation of the Company’s reserves in the Caney formation
of the Tishomingo Field in the SCOOP area of Oklahoma was conducted
by Netherland, Sewell & Associates, Inc. (‘NSAI’) in accordance
with National Instrument 51-101 – Standards of Disclosure for Oil
and Gas Activities.
“As a result of the Company’s strong well performance, NSAI
increased the expected ultimate recovery (‘EUR’) for most proved
locations in the 2022 reserve report. However, for each section as
a whole, where we drilled and completed wells in 2022, they left
their EUR assumptions relatively unchanged from their 12/31/21
reserve report for the sum total of the wells and the well
locations in the respective section. This resulted in them
assigning a lower Proved EUR to the remaining well locations in
those sections, as the already drilled and producing wells are
projected to recover more oil and gas than NSAI’s average proved
type curve. Management believes that more production history is
needed for NSAI to move the Probable and Possible reserves assigned
to those well locations into the Proved category.
“We are pleased to report that, to date, all the 2022 wells are
producing above the 12/31/22 NSAI Proved type curve.”
2022 Gross Reserves Summary
- Total Proved Reserves 33.3 million Barrels of oil equivalent
(BOE)
- a decrease of 2% over the December 31, 2021, estimate
- Proved plus Probable Reserves 54.4 million BOEs
- an increase of 2% over the December 31, 2021, estimate
- Proved plus Probable plus Possible Reserves 77.5 million BOEs
- an increase of 2% over the December 31, 2021, estimate
The above total Proved reserves are attributed to 23 of the
Caney wells already drilled, four Woodford wells (4.9% working
interest for the Company), and the drilling of 51.96 net additional
wells over the next four years. The Probable reserves are
attributed to the drilling of 29.89 net additional wells. The wells
in NSAI’s 2022 report are planned at 107-acre spacing (6 wells per
section) on approximately 14,350 net acres.
Summary of Oil & Gas
Reserves
Tight Oil
Shale Gas
Natural Gas Liquids
MBOE’s
Reserve Category
KEI Gross (Mbbl)
Net (Mbbl)
KEI Gross (MMcf)
Net (MMcf)
KEI (Mbbl)
Net (Mbbl)
KEI (Mbbl)
Net (Mbbl)
Proved
Developed Producing
4,364
3,425
4,165
3,269
874
686
5,932
4,656
Undeveloped
20,584
16,212
18,190
14,253
3,795
2,973
27,411
21,561
Total Proved
24,948
19,637
22,355
17,522
4,668
3,659
33,342
26,216
Probable
14,547
11,532
17,221
13,683
3,593
2,855
21,010
16,668
Total Proved Plus Probable
39,495
31,169
39,576
31,205
8,261
6,514
54,352
42,884
Possible
16,906
13,559
16,597
13,245
3,462
2,763
23,134
18,530
Total Proved Plus Probable Plus
Possible
56,401
44,728
56,173
44,450
11,724
9,277
77,487
61,413
Net Present Value of Future
Net Revenue
As of December 31,
2022
Forecast Prices &
Costs
Net Present Value of Future Net
Revenue ($ millions)
Before Income Tax
After Income Tax
Reserve Category
0%
5%
10%
15%
20%
0%
5%
10%
15%
20%
United States
Proved
Developed Producing
262.8
187.3
147.9
124.1
108.3
262.8
187.3
147.9
124.1
108.3
Undeveloped
933.1
556.1
366.9
257.0
186.3
657.8
420.6
280.8
194.2
137.4
Total Proved
1,195.9
743.4
514.8
381.1
294.7
920.6
607.9
428.7
318.3
245.7
Probable
797.4
377.6
209.6
127.3
81.1
587.5
303.2
169.8
101.7
64.0
Total Proved Plus Probable
1,993.3
1,121.0
724.4
508.4
375.8
1,508.1
911.1
598.5
420.0
309.7
Possible
1,104.2
435.8
214.8
119.7
71.6
813.6
355.4
171.5
90.3
51.0
Total Proved Plus Probable plus
Possible
3,097.5
1,556.8
939.2
628.1
447.4
2,321.7
1,266.5
770.0
510.3
360.7
Note: All dollar values are expressed in
U.S. dollars and may not add due to rounding.
The Company's reserves are derived from non-conventional oil and
gas activities. The Company's reserves are contained in a shale oil
reservoir from which gas and natural gas liquids are produced as
by-products. "Tight oil" means crude oil (a) contained in dense
organic-rich rocks, including low-permeability shales, siltstones,
and carbonates, in which the crude oil is primarily contained in
microscopic pore spaces that are poorly connected to one another,
and (b) that typically requires the use of hydraulic fracturing to
achieve economic production rates. "Shale gas" means natural gas
(a) contained in dense organic-rich rocks, including
low-permeability shales, siltstones, and carbonates, in which the
natural gas is primarily adsorbed on the kerogen or clay minerals,
and (b) that usually requires the use of hydraulic fracturing to
achieve economic production rates.
These after-income tax net present values reflect the tax burden
on the Company’s Tishomingo Field interests on a standalone basis,
do not consider the business-entity-level tax situation or tax
planning, and do not provide an estimate of the value at the level
of the business entity, which may be significantly different. The
financial statements and the management’s discussion and analysis
(MD&A) of the Company should be consulted for information at
the level of the business entity.
Readers are referred to the Company’s Form 51-101F1 Statement of
Reserves Data and Other Oil & Gas Information for the year
ended December 31, 2022, which can be accessed electronically from
the SEDAR website at www.sedar.com, for additional information.
“BOEs” refers to barrels of oil equivalent. BOEs/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. 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
provided plus probable plus possible reserves. The present value of
estimated future net revenues referred to herein does not represent
fair market value and should not be construed as the current market
value of estimated crude oil and natural gas reserves attributable
to the Company’s properties. 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.
About Kolibri Global Energy Inc.
Kolibri Global Energy Inc. is an international 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 OTCQB under the stock symbol KGEIF.
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, including statements regarding estimates
of reserves and future net revenue and cash flow, expectations
regarding additional reserves and statements regarding Caney wells
development, including plans, anticipated results and timing.
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. Estimated reserves and future net
revenue have been independently evaluated by NSAI with an effective
date of December 31, 2022. This evaluation is based on a limited
number of wells with limited production history and includes a
number of assumptions relating to factors such as availability of
capital to fund required infrastructure, commodity prices,
production performance of the wells drilled, successful drilling of
infill wells, the assumed effects of regulation by government
agencies and future capital and operating costs. All of these
estimates will vary from actual results. Estimates of the
recoverable oil and natural gas reserves attributable to any
particular group of properties, classifications of such reserves
based on risk of recovery and estimates of future net revenues
expected therefrom, will vary. The Company's actual production,
revenues, taxes, development and operating expenditures with
respect to its reserves will vary from such estimates, and such
variances could be material. Estimates of after-tax net present
value are dependent on a number of factors including utilization of
tax-loss carry forwards. In addition to the foregoing, other
significant factors or uncertainties that may affect either the
Company’s reserves or the future net revenue associated with such
reserves include material changes to existing taxation or royalty
rates and/or regulations, and changes to environmental laws and
regulations. Forward-looking information regarding Caney wells
development and expectations regarding additional reserves are
based on plans and estimates of management and interpretations of
exploration information by the Company's exploration team at the
date the information is provided and is subject to several factors
and assumptions of management, including that required regulatory
approvals and capital will be available when required, 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 demand for oil and gas will
be sustained, that the price of oil will be sustained or increase,
that no unforeseen delays, unexpected geological or other effects,
equipment failures, permitting delays or labor or contract disputes
or shortages are encountered, that the development plans of the
Company and its co-venturers will not change, and 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, including that
anticipated results and estimated costs will not be consistent with
managements’ expectations, the risk of commodity price and foreign
exchange rate fluctuations, the Company or its subsidiaries not
being 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 capital
is not available when required, that unexpected geological results
are encountered and that equipment failures, permitting delays or
labor or contract disputes or shortages are encountered.
Information on other important economic factors or significant
uncertainties that may affect components of the reserves data and
the other forward looking statements in this release are contained
in the Company’s Form 51-101F1 Statement of Reserves Data and Other
Oil & Gas Information for the year ended December 31, 2022, the
Company’s Management Discussion and Analysis and the Company’s
Annual Information Form under "Risk Factors", which are available
under the Company's profile at www.SEDAR.com. The Company
undertakes no obligation to update forward-looking statements,
other than as required by applicable law.
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version on businesswire.com: https://www.businesswire.com/news/home/20230313005264/en/
Wolf E. Regener +1 (805) 484-3613 Email:
wregener@kolibrienergy.com Website: www.kolibrienergy.com
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