Mr. Wolf Regener reports

KOLIBRI GLOBAL ENERGY INC. PROVIDES 2024 GUIDANCE AND OPERATIONS UPDATE

Kolibri Global Energy Inc. has provided its 2024 guidance and an operations update for its Tishomingo field in Oklahoma.

Two thousand twenty-four guidance

The company has provided its forecasted guidance for 2024, as shown in the associated table.

The strategy of the company for 2024 is to continue to develop the field by converting its significant number of proved undeveloped wells into producing wells that generate cash flow. The average production, revenue and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) guidance for 2024 shows significant growth from the latest 2023 forecast numbers, even with a $72 WTI (West Texas Intermediate) price assumption. As the company executes this strategy going forward, it will consider the implementation of a shareholder return policy in 2024.

The company anticipates completing six to seven wells this year. The company plans to drill and complete two wells in the second quarter, drill two to three additional wells later in the year, and then fracture stimulate the two to three additional wells, together with the two Velin wells that the company just finished drilling.

Wolf Regener, president and chief executive officer, commented: "We are looking forward to another strong year of revenue and cash flow growth for the company, based on our 2024 forecast. We are also very pleased with our team's execution. The constant improvement that we strive for has led to a large reduction in our well costs. The forecasted well costs were $7.2-million last year, and the cost for the last two Emery wells was about $5.4-million, which is a 25-per-cent reduction in well costs."

Operations update

The three-well Emery pad averaged a total of 960 barrels of oil equivalent per day (boe/d) (710 barrels of oil per day (bopd)) for the first 30 days of production and averaged 1,010 boe/d (755 bopd) for five days last week. As previously disclosed, more fracture stimulation fluid is being recovered from all three wells than from the company previous wells, which management believes explains the slight uptick in the recent production numbers. Based on Kolibri's preliminary analysis, the technical team believes that there is increased natural fracturing in certain areas of the field, which appears to allow the fracture stimulations to communicate between the T-zone and the Caney. This connection is likely the cause of the different flowback and early production profiles of the Emery wells, with more fluid having been pushed into the Caney. The company is still conducting further analysis work on the tracers, production and pressure data that are continuing to be gathered, and intends to complete that analysis before drilling additional T-zone wells.

The three Emery wells were drilled and completed for about $5.6-million (U.S.) each, with the last two averaging $5.4-million (U.S.) each. The last two were drilled utilizing efficiency changes implemented partway through drilling the first Emery well. The company continues to improve its efficiency in its field operations as the well costs of $5.4-million (U.S.) are substantially lower than the well costs of $7.2-million (U.S.) that were forecast in early 2023 and are also lower than the $6-million (U.S.) cost of the last two wells, the Barnes 7-4H and Barnes 7-5H.

The company recently finished drilling the Velin 12-9H well and the Velin 12-10H well, which are both Caney wells. Both wells were drilled safely and on budget. As the company continues to analyze the flowback profile from the three-well Emery pad, the drilling rig has been released as it determined not to drill the previously planned T-zone well.

Also, as previously disclosed, the fracture stimulation of these three Emery wells impacted the surrounding wells more than was originally anticipated, which was likely also caused by increased natural fracturing. These wells have continued to recover, and the company continues to expect that recovery to take several months.

Like many other operators, the company's operations were impacted by the below-freezing temperatures in January, 2024. This caused much of the Tishomingo field to be shut in for nine to 14 days. The company is currently restoring production and anticipates it will be fully restored this week. Prior to the freeze, the field was producing about 3,800 boe/d.

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 and gas, and clean and sustainable energy.

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