Mr. Wolf Regener reports

KOLIBRI GLOBAL ENERGY INC. PROVIDES GUIDANCE AND CORPORATE UPDATE

Kolibri Global Energy Inc. is providing an update on operations and updated guidance.

Guidance update

The company is updating its 2025 forecasted guidance as shown in the attached table.

The average production, revenue and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) guidance show significant growth from 2024 even though this guidance has been revised lower from the company's previous guidance due to several factors. The first factor is lower than expected oil prices, which have averaged less than the $70/bbl price used in the company's original guidance from early January, 2025, when oil was at $78/bbl. Also, the four wells that were planned to come on production during the fourth quarter are delayed due to a drill pipe failure. After the Barnes 6-31-3H well was drilled to total depth, the drill pipe failure caused the drilling assembly to become stuck in the wellbore. Attempts to recover the drilling assembly were unsuccessful. As a result, the well is currently being redrilled. This has caused a delay in the fracture stimulations of all four wells since they are located in the same area. While this incident will not impact the ultimate productivity of the well, the delay in the start of production from the new wells has caused us to adjust our original forecast.

The company expects annual capital expenditures paid during the year to be in the range of $55-million (U.S.) to $58-million (U.S.), which is higher than originally forecasted due to the redrill, weather issues and cost increases in 2025. Net debt is forecasted to be between $46-million (U.S.) and $48-million (U.S.), which is higher than previously forecast, mainly due to the timing of the wells. The company expects to generate cash flow from production, including the four new wells, to make debt paydowns of $8-million to $10-million in the first quarter of 2026.

Operations update

The Barnes 6-31-2H well was successfully and safely drilled under budget, per field estimates. Once the redrill of the Barnes 6-31-3H well is completed, the company will begin completion operations on the two Barnes wells along with the Velin 12-9 and 12-10 wells that have already been drilled.

The four Lovina wells that were completed earlier this year are still producing at a higher oil rate of 80 per cent and declining at lower rates than the company's other wells.

The Forguson 17-20-3H well, which is located on the east side of the company's property, is still increasing production as frack fluid is being recovered. While only 3.8 per cent of the frack fluid has been recovered, production from the well has increased by 21 per cent since the company's last update. On average, the company's wells have achieved their peak production rate by the time 7 per cent to 10 per cent of the fracture stimulation fluid has been recovered. The well is currently averaging about 195 barrels of oil equivalent per day, with 106 barrels being oil.

Wolf Regener, president and chief executive officer, commented: "It is unfortunate and disappointing when a single component failure impacts the company's drilling program. We have not been forced to redrill a well in over 11 years. We are not happy with the delay it has caused in completing the four wells, but I am glad that it won't affect the ultimate productivity of the well. These wells are now expected to come on production in December and thus will have the biggest impact on production in the first quarter of 2026. We expect to achieve a record production exit rate, which sets the company up for a strong 2026 with further success to grow from.

"On the Lovina wells, we are happy to see that they are declining at lower rates than other wells in our field. This is what we were predicting given the higher percentage oil rates from the wells, which are also expected to lead to higher netbacks for the company.

"The continued improvement in the production rates of the Forguson well is also encouraging. As a reminder, the Forguson well and the 3,000 net acres associated with it in the eastern part of the field are not part of our reserve report."

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. The company's shares are traded on the Toronto Stock Exchange under the stock symbol KEI and on Nasdaq under the stock symbol KGEI.

The following is the reconciliation of the non-GAAP (generally accepted accounting principles) measure adjusted EBITDA to the comparable financial measures disclosed in the company's financial statements.

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