Mr. Wolf Regener reports

KOLIBRI GLOBAL ENERGY ANNOUNCES ANNUAL 2023 NET INCOME OF US$19.3 MILLION AND ADJUSTED EBITDA OF $39.1 MILLION

Kolibri Global Energy Inc. has released its 2023 results. (All amounts are in United States dollars unless otherwise indicated.) Kolibri's president and chief executive officer, Wolf Regener, commented:

"We are excited about the continued production and cash flow growth of the company in 2023 after our transformative year in 2022. The company increased adjusted EBITDA by 56 per cent by successfully drilling and completing eight wells during the year which increased production by 70 per cent. Management is expecting to build on the company's continued growth in 2024. We drilled two additional wells in December, 2023, and January, 2024, that will be fracture stimulated later in the year. In April, we finished drilling the Nickel Hill 35-1H and Nickel Hill 35-2H wells (both 62.9-per-cent working interest) under budget and faster than we had forecasted. We expect to begin fracture stimulation operations on these wells in early May.

"During the first quarter of 2024, the company reworked three wells which were impacted by offset fracture stimulations. Wells that were impacted by offset fracture stimulations reduced production for the quarter by about 275 BOEPD. Production in the first quarter averaged about 3,305 BOEPD. At the end of the first quarter of 2024, production from the impacted wells hadn't fully recovered yet, and another two reworks were undertaken in April. Even with the impacted wells, oil production is tracking above our year-end reserve engineer's forecast.

"Adjusted EBITDA was $39.1-million in 2023 compared with $25.1-million in 2022, an increase of 56 per cent. This increase was due to a 70-per-cent increase in production and lower realized losses from commodity contracts partially offset by a 22-per-cent decrease in average prices.

"The average production for 2023 was 2,796 BOEPD, an increase of 70 per cent compared with 2022 production of 1,640 BOEPD. The increase is due to production from the wells that were drilled and completed in 2023.

"Net revenues for 2023 were $50.6-million, an increase of 35 per cent compared with 2022. This increase was primarily due to a 70-per-cent increase in production partially offset by a 22-per-cent decrease in average prices in 2023 compared with 2022.

"Net income in 2023 was $19.3-million compared with $16.6-million in 2022, an increase of 16 per cent due to higher production, lower realized losses and higher unrealized gains on commodity contracts partially offset by lower prices and higher depreciation and income tax expense compared with 2022.

"Netback from operations decreased to $42.97 per BOE compared with $54.56 per BOE in 2022, a decrease of 21 per cent. Netback including commodity contracts for 2023 was $41.61 per BOE compared with $47.79 per BOE in 2022, a decrease of 13 per cent from the prior year. These decreases compared with the prior year were due to lower average prices of 22 per cent.

"Production and operating expense per barrel averaged $6.61 per BOE in 2023 compared with $8.19 per BOE in 2022, a decrease of 19 per cent. The decrease was due to increased production which reduced the per barrel fixed costs and lower production taxes."

2023 highlights

• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was $39.1-million in 2023 compared with $25.1-million in 2022, an increase of 56 per cent. This increase was due to the increase in production of 70 per cent and lower realized losses from commodity contracts partially offset by a decrease in average prices of 22 per cent.
• Net revenues for 2023 were $50.6-million, an increase of 35 per cent compared with 2022. This increase was primarily due to a 70-per-cent increase in production partially offset by a 22-per-cent decrease in average prices in 2023 compared with 2022.
• Net income in 2023 was $19.3-million (54 cents per basic share) compared with $16.6-million (47 cents per basic share) in 2022. Net income increased by $2.6-million or 16 per cent over 2022 due to higher production, lower realized losses and higher unrealized gains on commodity contracts partially offset by lower prices, and higher depreciation and income tax expense compared with 2022.
• Average production for 2023 was 2,796 BOEPD, an increase of 70 per cent compared with 2022 production of 1,640 BOEPD. The increase is due to production from the wells that were drilled and completed in 2023.
• The company's NPV10 of total proved reserves was $482.6-million for 2023, which was a 6-per-cent decrease from 2022 according to the company's Dec. 31, 2023, independent reserves evaluation, due primarily to lower estimated future pricing and the 2023 production.
• Netback from operations decreased to $42.97 per BOE compared with $54.56 per BOE in 2022, a decrease of 21 per cent. Netback including commodity contracts for 2023 was $41.61 per BOE compared with $47.79 per BOE in 2022, a decrease of 13 per cent from the prior year. These decreases compared with the prior year were due to lower average prices of 22 per cent.
• Production and operating expense per barrel averaged $6.61 per BOE in 2023 compared with $8.19 per BOE in 2022, a decrease of 19 per cent. The decrease was due to increased production which reduced the per barrel fixed costs as well as lower production taxes.
• The net debt of the company at Dec. 31, 2023, was $29.4-million. As of Dec. 31, 2023, the company has $10-million of available borrowing capacity on the credit facility.
• The ratio of debt to adjusted EBITDA was 0.68 at Dec. 31, 2023.

Year ended 2023 to year ended 2022

For 2023, oil and gas gross revenues increased $16.0-million or 33 per cent to $64.4-million. Oil revenues before royalties increased by 40 per cent to $59.7-million due to a 73-per-cent increase in production partially offset by a 19-per-cent decrease in prices. Natural gas revenues before royalties decreased by $1.0-million or 37 per cent due to a 59-per-cent decrease in average gas prices partially offset by a 54-per-cent increase in natural gas production. NGL (natural gas liquids) revenue before royalties increased by $100,000 or 3 per cent due to a 71-per-cent increase in production partially offset by a 40-per-cent decrease in average prices.

Average production for 2023 was 2,796 BOEPD (barrels of oil equivalent per day), an increase of 70 per cent compared with 2022 average production of 1,640 BOEPD due to the wells drilled during 2023.

Production and operating expenses increased by $1.0-million due to an increase in production for 2023. Production and operating expense per barrel averaged $6.61 per BOE in 2023 compared with $8.19 per BOE in 2022, a decrease of 19 per cent. The decrease was due to increased production which reduced the fixed per barrel costs and lower production taxes.

Depletion and depreciation expense increased $7.4-million, or 98 per cent, in 2023 due to increased production and a higher PP&E (property, plant and equipment) balance.

General and administrative expenses increased $700,000 or 21 per cent in 2023 due to higher costs associated with the dual listing process, higher investor relations and marketing costs, and increases in payroll and director costs.

Finance income increased by $1.3-million due to higher unrealized gains on financial commodity contracts recorded in 2023.

Finance expense decreased by $1.3-million due to lower realized losses on commodity contracts in 2023 compared with 2022, partially offset by higher interest expense in 2023.

Fourth quarter highlights:

• Adjusted EBITDA was $10.5-million in the fourth quarter of 2023 compared with $6.9-million in 2022, an increase of 53 per cent. This increase was due to the increase in production partially offset by the decrease in average prices.
• Net revenues for the fourth quarter of 2023 were $13.4-million, an increase of 38 per cent, compared with the fourth quarter of 2022. This increase was primarily due to an increase in production partially offset by a decrease in average prices.
• Net income in the fourth quarter of 2023 was $4.8-million, compared with net income of $2.8-million in the fourth quarter of 2022. The increase was due to higher average production and an unrealized gain on commodity contracts in 2023 partially offset by lower average prices and higher income tax expense in 2023.
• Average production for the fourth quarter of 2023 was 2,842 BOEPD, an increase of 52 per cent compared with fourth quarter 2022 production of 1,868 BOEPD. The increase is due to production from the new wells drilled in 2023.
• Netback from operations decreased to $44.40 per BOE in the fourth quarter of 2023 compared with $48.39 per BOE in the fourth quarter of 2022, a decrease of 8 per cent. Netback including commodity contracts for the fourth quarter of 2023 was $43.43 per BOE compared with $46.05 in the fourth quarter of 2022, a decrease of 6 per cent from the prior-year quarter. The 2023 decreases compared with the prior year was due to the decrease in average prices.
• Production and operating expense per barrel averaged $7.02 per BOE in the fourth quarter of 2023 compared with $8.25 per BOE in the fourth quarter of 2022, a decrease of 15 per cent. The decrease was due to increased production which reduced the per barrel fixed costs.

Fourth quarter 2023 to fourth quarter 2022

Gross oil and gas revenues totalled $17.2-million in the fourth quarter of 2023 versus $12.5-million in the fourth quarter of 2022, an increase of 38 per cent. Oil revenues were $16.2-million in the fourth quarter of 2023 versus $11.5-million in the fourth quarter of 2022, an increase of 41 per cent, due to increased average production partially offset by lower prices. Natural gas revenues decreased 49 per cent to $300,000 in the fourth quarter of 2023 due to lower average prices partially offset by higher production. NGL revenue increased 78 per cent to $700,000 due to higher production, partially offset by lower average prices.

Operating expenses were $1.6-million in the fourth quarter of 2023 compared with $1.4-million in 2022 due to higher production.

General and administrative expenses increased by 6 per cent in the fourth quarter of 2023 compared with the prior-year fourth quarter due to higher costs associated with the dual listing process and higher investor relations and marketing costs.

Finance income in the fourth quarter of 2023 increased by $2.2-million from the fourth quarter of 2022 due to an unrealized gain on commodity contracts in the fourth quarter of 2023.

Finance expense in the fourth quarter of 2023 decreased by $900,000 from the fourth quarter of 2022 due to an unrealized loss on commodity contracts in 2022 partially offset by higher interest expense.

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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