Mr. Wolf Regener reports

KOLIBRI GLOBAL ENERGY INC. PROVIDES 2023 GUIDANCE UPDATE AND OPERATIONS UPDATE

Kolibri Global Energy Inc. is updating its estimated 2023 guidance and is providing an operations update for its Tishomingo field in Oklahoma.

Guidance update

The company is updating its 2023 forecasted guidance as noted herein.

The average production, revenue and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) guidance show significant growth from 2022 even though this guidance has been revised lower from the company's previous guidance due to several factors. The main factors are timing, as new wells started producing later than previously forecasted, oil prices that are lower than previously assumed and production impacts from the shut-in of wells surrounding the latest completions, discussed in more detail below.

The company expects annual capital expenditures paid during the year to be in the range of $47-million (U.S.) to $49-million (U.S.). This guidance is being lowered due to actual well costs coming in substantially below budget. Net debt is forecasted to be $29-million (U.S.) to $31-million (U.S.), which is higher than previously forecast due mainly to the timing of the wells. The company continues to anticipate that its debt to adjusted EBITDA ratio will be less than one time at the end of 2023.

Operations update

The Emery 17-3H, 17-4H and 17-5H wells were successfully drilled and fracture stimulated safely and under budget. Flowback of the fracture stimulation fluid is under way but is taking longer than expected. More fracture stimulation fluid is being recovered by these wells than from the company's previous wells. As a result, Kolibri does not yet have stabilized oil and gas rates. Once the cleanup of the wells is complete, the company will be in a better position to determine what these wells are capable of producing.

In addition, the fracture stimulation of these three Emery wells impacted the surrounding wells more than was originally anticipated. These surrounding wells, which were shut in during the Emery operations, have returned to production, but a number of them have not yet recovered to their preshut-in rates. Kolibri anticipates that it may take a few months for their recovery. These factors will cause the exit rate to fall below the previously announced rate. What the final rate will be is subject to the production rates of the Emery wells and the degree of recovery in the surrounding wells on Dec. 31, 2023.

The Velin 12-9H well was spudded last week and is anticipated to be finished drilling in the coming week. The rig is planned to spud the next well on the pad in the beginning of January.

About Kolibri Global Energy Inc.

Kolibri Global Energy 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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