Mr. Wolf Regener reports

KOLIBRI GLOBAL ENERGY ANNOUNCES THIRD QUARTER 2023 NET INCOME OF US$2.3 MILLION AND ADJUSTED EBITDA OF US$9.5 MILLION

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

Third quarter 2023 highlights:

• Average production for the third quarter of 2023 was 2,737 barrels of oil equivalent per day, an increase of 61 per cent compared with third quarter 2022 production of 1,702 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 production restrictions due to the company's gathering system operator, existing wells that were shut in while completion operations were under way and a few well reworks. These reduced third quarter production by approximately 200 boe/d.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was $9.5-million in the third quarter of 2023 compared with $6.9-million in the third quarter of 2022, an increase of 39 per cent. The increase was primarily due to an increase in production of 61 per cent and lower realized losses on commodity contracts, partially offset by a decrease in average prices of 20 per cent.
• Revenue, net of royalties, was $12.7-million in the third quarter of 2023 compared with $9.9-million for the third quarter of 2022, which was an increase of 29 per cent, as production increased by 61 per cent partially offset by a decrease in average prices of 20 per cent.
• Net income for the third quarter of 2023 was $2.3-million, and basic earnings per share were seven cents per share compared with net income of $9.3-million and basic EPS of 26 cents for the third quarter of 2022. The decrease was mainly due to an unrealized loss on commodity contracts of $2.6-million in the third quarter of 2023 versus an unrealized gain on commodity contracts of $4.6-million that was recorded in the third quarter of 2022. In addition, the third quarter of 2023 had lower average prices and higher depreciation expense, which were offset by higher production compared with the third quarter of 2022.
• Average netback from operations for the third quarter of 2023 was $43.28 per boe, a decrease of 22 per cent from the prior-year third quarter due to lower prices in 2023. Average netback including commodity contracts for the third quarter of 2023 was $41.65 per boe, a decrease of 16 per cent from the prior-year third quarter due to lower prices.
• Production and operating expenses per barrel averaged $7.34 per boe in the third quarter of 2023 compared with $7.77 per boe in the third quarter of 2022, a decrease of 6 per cent. The $7.34 per boe in the third quarter includes prior-month costs, which its gathering system operator had underbilled for previous periods. In addition, due to the company's recent completion operations, some of the adjacent existing wells are producing additional water, which is expected to decrease over time.
• In October, 2023, the credit facility was redetermined with the same $40-million borrowing base. At Sept. 30, 2023, the company had $15.8-million of available borrowing capacity on its credit agreement, and its net debt outstanding was $23.8-million.

Kolibri's president and chief executive officer, Wolf Regener, commented: "We are pleased that the company continues to grow our operations with third quarter 2023 adjusted EBITDA of $9.5-million, a 39-per-cent increase from the prior-year quarter. With the Barnes 7-4H and the Barnes 7-5H wells starting production at the beginning of October and the Emery 17-3H, 17-4H and 17-5H wells expected to start production at the beginning of December, we expect a continued increase in our cash flow in the fourth quarter. The Barnes 7-4H well had a 30-day production rate of 665 boe/d, and the Barnes 7-5H had a 30-day production rate of 613 boe/d.

"We are also continuing to improve the efficiency of our field operations as the Barnes 7-4H and Barnes 7-5H wells had an average total cost of approximately $6-million per well and the 3 Emery wells were drilled at an average time of only 11 days each. This is a dramatic improvement as we were estimating 20-day wells at the beginning of this year. We expect to start completion operations for the Emery 17-3H, 17-4H and 17-5 wells in the next week and expect them to begin producing in early December. We are excited to apply our new completion technique to the Emery 17-4H well, which is the second well we have drilled in the T-zone, to demonstrate the repeatability of making economic wells in this new formation.

"We have also scheduled to begin drilling the first well in our next three-well pad in mid-December. The three-well pad will consist of two lower Caney wells and one T-zone well.

"Average production for the third quarter of 2023 was 2,737 boe/d, an increase of 61 per cent compared to third quarter 2022 production of 1,702 boe/d 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, partially offset by the wells that were shut in during completion operations and the production restrictions from the gathering system operator.

"Adjusted EBITDA was $9.5-million for the third quarter of 2023 compared to $6.9-million for the prior-year third quarter, an increase of 39 per cent. The increase was due to the increase in production partially offset by a decrease in average prices.

"Net revenue was $12.7-million in the third quarter of 2023 compared to $9.9-million for third quarter of 2022, which was an increase of 29 per cent due to higher production partially offset by lower prices.

"Net income for the third quarter of 2023 was $2.3-million compared to net income of $9.3-million for the third quarter of 2022. The decrease was mainly due to an unrealized loss on commodity contracts of $2.6-million in the third quarter of 2023 versus an unrealized gain on commodity contracts of $4.6-million that was recorded in the third quarter of 2022. In addition, the third quarter of 2023 had lower average prices and higher depreciation expense, which was offset by higher production compared to the third quarter of 2022.

"Netback from operations decreased to $43.28 per boe in the third quarter of 2023 compared to $55.16 per boe in the same period of 2022, a decrease of 22 per cent. Netback including commodity contracts for the third quarter of 2023 was $41.65 per boe compared to $49.69 in 2022, a decrease of 16 per cent from the prior-year period. The 2023 decreases compared to the same periods in the prior year were due to the decrease in average prices.

"Operating expenses averaged $7.34 per boe in the third quarter of 2023 compared to $7.77 per boe in the third quarter of 2022, a decrease of 6 per cent. The $7.34 per boe in the third quarter includes prior-month costs, which our gathering system operator had underbilled for previous periods. In addition, due to the company's recent completion operations, some of the adjacent existing wells are producing additional water, which is expected to decrease over time."

About Kolibri Global Energy Inc.

Kolibri is a North American energy company focused on finding and exploiting energy projects in oil and gas. 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 in oil, gas, and clean and sustainable energy. The company's shares are traded on the Toronto Stock Exchange under the stock symbol KEI and on the Nasdaq under the stock symbol KGEI.

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