Mr. Wolf Regener reports

KOLIBRI GLOBAL ENERGY ANNOUNCES NET INCOME OF $4.3 MILLION AND EPS OF $0.12 PER SHARE FOR SECOND QUARTER OF 2023

Kolibri Global Energy Inc. has released its second quarter 2023 financial results. All amounts are in U.S. dollars unless otherwise indicated.

Second quarter highlights:

• Average production for the second quarter of 2023 was 2,415 barrels of oil equivalent per day, an increase of 25 per cent compared with the second quarter of 2022 average production of 1,928 boe/d. This increase is due to production from the Emery 17-2H, the Brock 9-3H and the Glenn 16-3H wells, which started production at the end of 2022, and the Barnes 8-1H, Barnes 8-2H and Barnes 8-3H wells, which started production in the last week of June, 2023. The production increases were partially offset by existing wells that were shut in for two to four weeks of the quarter while completion operations were under way. Approximately 800 boe/d were shut in for two weeks, and 300 boe/d were shut in for four weeks during the second quarter.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) (1) was $7.6-million in the second quarter of 2023 compared with $8.6-million in the second quarter of 2022, a decrease of 12 per cent. The decrease was due to a decrease in average prices of 37 per cent partially offset by a 25-per-cent increase in production.
• Revenue, net of royalties, was $10.1-million in the second quarter of 2023 compared with $12.4-million for second quarter of 2022, a decrease of 19 per cent, due to lower average prices partially offset by higher production.
• Net income in the second quarter of 2023 was $4.3-million, and earnings per share were 12 cents per share compared with $7.0-million and EPS of 20 cents per share in the second quarter of 2022. The decrease was due to lower average prices and higher depletion and depreciation expense, partially offset by higher production and lower realized losses on commodity contracts compared with the prior-year second quarter.
• Average netback from operations (2) for the second quarter of 2023 was $39.97 per boe, a decrease of 37 per cent from the prior-year second quarter due to higher average prices in 2022. Netback including commodity contracts (2) for the second quarter of 2023 was $38.60 per boe, which was 28 per cent lower than the prior-year second quarter.
• Production and operating expenses per barrel averaged $6.04 per boe in the second quarter of 2023 compared with $7.77 per boe in the second quarter of 2022, a decrease of 22 per cent. The decrease was due to increased production, which reduced the per-barrel fixed costs, and lower production taxes due to a decrease in prices.
• At June 30, 2023, the company had $21.8-million of available borrowing capacity on its credit agreement, and its net debt outstanding was $16.8-million.

(1) Adjusted EBITDA is considered a non-generally accepted accounting principle measure.

(2) Netback from operations and netback including commodity contracts are considered non-GAAP ratios.

Kolibri's president and chief executive officer, Wolf Regener, commented: "We are extremely excited about the execution of our 2023 drilling program as we continue to make progress in maximizing the development of our Tishomingo field. The early performance of the Barnes 8-1H and Barnes 8-2H wells is on track to confirm that we can economically down space to six Caney wells per section, and the early results of the Barnes 8-3H T-zone well indicate that T-zone wells are also likely to be economic.

"We are now accelerating our development plans by drilling five continuous wells to close out our 2023 drilling program. We are currently drilling the Barnes 7-5H well, to be followed immediately by the Barnes 7-4H well, which are both located in the lower Caney. We will then begin drilling the next three-well pad, consisting of two lower Caney wells and one T-zone well, while we simultaneously fracture stimulate the Barnes 7-5H and Barnes 7-4H wells. We will continue to fund our drilling program primarily from operating cash flow but expect our net debt to increase slightly at year-end as we manage our working capital from the accelerated drilling schedule.

"Average production for the second quarter of 2023 was 2,415 boe/d, an increase of 25 per cent compared to the second quarter of 2022 average production of 1,928 boe/d due to the five wells that were drilled in the prior year partially offset by the shut-in wells during completion operations. At the end of the second quarter, our exit rate production was about 3,400 boe/d. This does not include about 300 boe/d of production that was either shut in or was in the process of dewatering after being impacted by the completion operations.

"Adjusted EBITDA was $7.6-million in the second quarter of 2023 compared to $8.6-million in the second quarter of 2022, a decrease of 10 per cent. The decrease was due to a 37-per-cent decrease in average prices, partially offset by a 25-per-cent increase in production.

"Net revenue decreased by 19 per cent to $10.1-million in the second quarter of 2023 compared to $12.4-million for the second quarter of 2022 due to the average price decline partially offset by higher production. We expect revenue to increase in the third quarter due to production from the three recently completed wells in addition to production from the Barnes 7-4H and Barnes 7-5H wells, which we anticipate to begin before the end of the third quarter.

"Net income in the second quarter of 2023 was $4.3-million with EPS of 12 cents per share compared to $7.0-million with EPS of 20 cents per share in the second quarter of 2022. The decrease was due to lower average prices and higher depletion and depreciation expense partially offset by higher production and lower realized losses on commodity contracts compared to the prior-year second quarter.

"Netback from operations for the second quarter of 2023 was $39.97 per boe, a decrease of 37 per cent from the prior-year second quarter due to higher average prices in 2022. Netback including commodity contracts for the second quarter of 2023 was $38.60 per boe, which was 28 per cent lower than the prior-year second quarter.

"Operating expenses per barrel averaged $6.04 per boe in the second quarter of 2023 compared to $7.77 per boe in the second quarter of 2022, a decrease of 22 per cent. The decrease was due to increased production, which reduced the per-barrel fixed costs, and lower production taxes due to a decrease in prices."

About Kolibri Global Energy Inc.

Kolibri is a North American energy company focused on finding and exploiting energy projects in oil, gas, and clean and sustainable energy. 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 common shares of the company trade on the Toronto Stock Exchange under the symbol KEI and on the OTCQX under the symbol KGEIF.

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