Kolibri Global Energy Inc. (the “Company” or
“KEI”) (TSX: KEI), is providing the results of its December
31, 2021, independent reserves evaluation.
Wolf Regener, President, and CEO, commented, “We are very
pleased that our proved reserves increased slightly (3% increase on
a BOE basis), demonstrating the low decline rates of our production
and the quality of our reservoir. The year after year of excellent
reserve numbers demonstrates the favorable performance of our wells
and the long life we anticipate from our field.
Our Proved Reserves value of US$358.8 million dollars (Net
Present Value discounted at 10%), which increased 86% from the 2020
independent reserves evaluation, shows how valuable the Tishomingo
Field is for the Company. Also of note is that the current oil
strip pricing is far higher than the $73 and $70 oil pricing used
for 2022 and 2023, respectively, in this reserves evaluation.
We have drilled two additional wells that are not accounted for
in this December 31, 2021 reserves evaluation since they were
started in 2022. The first of these two wells is currently being
completed. We look forward to bringing these wells on production in
the current price environment, which is expected to significantly
increase the Company’s cash flow at current prices and add
incremental value to the shareholders.”
The evaluation of the Company’s reserves in the Caney formation
of the Tishomingo Field in the SCOOP area of Oklahoma was conducted
by Netherland, Sewell & Associates, Inc. ("NSAI") in accordance
with National Instrument 51-101 – Standards of Disclosure for Oil
and Gas Activities.
2021 Gross Reserves Summary
- Total Proved Reserves 34.1 million Barrels of oil equivalent
(BOE) - an increase of 3% over the December 31, 2020 estimate
- Proved plus Probable Reserves 53.3 million BOEs - an increase
of 2% over the December 31, 2020 estimate
- Proved plus Probable plus Possible Reserves 76.1 million BOEs -
a decrease of 1% over the December 31, 2020 estimate
Net Present Value of Reserves discounted at 10%
- Total Proved Reserves before tax of U.S. $358.8 million - an
increase of 86% over the December 31, 2020 estimate
- Proved plus Probable Reserves before tax of U.S. $492.2 million
- an increase of 87% over the December 31, 2020 estimate
- Proved plus Probable plus Possible Reserves before tax of U.S.
$642.8 million - an increase of 76% over the December 31, 2020
estimate
The above total Proved reserves are attributed to 18 of the
Caney wells already drilled, four Woodford wells (4.9% working
interest for the Company) and the drilling of 55.72 net additional
wells over the next 3 years. The Probable reserves are attributed
to the drilling of 28.3 net additional wells. The wells in this
report are planned at 107 acre spacing (6 wells per section) on
approximately 14,350 net acres.
Summary of Oil & Gas
Reserves
Tight Oil
Shale Gas
Natural Gas Liquids
MBOE's
Reserve Category
KEI Gross (Mbbl)
Net (Mbbl)
KEI Gross (MMcf)
Net (MMcf)
KEI (Mbbl)
Net (Mbbl)
KEI (Mbbl)
Net (Mbbl)
Proved
Developed Producing
2,308
1,805
3,205
2,510
659
516
3,501
2,739
Undeveloped
22,207
17,466
22,598
17,704
4,615
3,615
30,588
24,032
Total Proved
24,515
19,271
25,803
20,214
5,274
4,132
34,089
26,771
Probable
12,691
10,085
17,536
13,955
3,581
2,850
19,195
15,261
Total Proved Plus Probable
37,206
29,356
43,339
34,169
8,855
6,982
53,284
42,032
Possible
16,753
13,431
16,418
13,111
3,353
2,678
22,842
18,293
Total Proved Plus Probable Plus
Possible
53,958
42,786
59,757
47,280
12,208
9,659
76,126
60,325
Net Present Value of Future
Net Revenue
As of December 31,
2021
Forecast Prices &
Costs
Net Present Value of Future Net
Revenue ($ millions)
Before Income Tax
After Income Tax
Reserve Category
0%
5%
10%
15%
20%
0%
5%
10%
15%
20%
United States
Proved
Developed Producing
106.1
74.4
57.2
46.6
39.6
106.1
74.4
57.2
46.6
39.6
Undeveloped
855.4
483.8
301.6
198.5
134.1
645.0
394.9
252.7
166.8
111.8
Total Proved
961.5
558.2
358.8
245.2
173.8
751.1
469.3
309.9
213.4
151.4
Probable
571.0
257.0
133.4
74.3
42.3
420.7
204.9
105.8
56.4
29.7
Total Proved Plus Probable
1,532.5
815.2
492.2
319.5
216.0
1,171.8
674.2
415.7
269.8
181.1
Possible
871.1
328.1
150.6
76.4
40.3
641.8
267.8
119.9
56.3
26.8
Total Proved Plus Probable plus
Possible
2,403.5
1,143.3
642.8
395.9
256.4
1,813.6
942.0
535.6
326.1
207.9
Note: All dollar values are expressed in
U.S. dollars and may not add due to rounding.
The Company's reserves are derived from non-conventional oil and
gas activities. The Company's reserves are contained in a shale oil
reservoir from which gas and natural gas liquids are produced as
by-products. "Tight oil" means crude oil (a) contained in dense
organic-rich rocks, including low-permeability shales, siltstones
and carbonates, in which the crude oil is primarily contained in
microscopic pore spaces that are poorly connected to one another,
and (b) that typically requires the use of hydraulic fracturing to
achieve economic production rates. "Shale gas" means natural gas
(a) contained in dense organic-rich rocks, including
low-permeability shales, siltstones and carbonates, in which the
natural gas is primarily adsorbed on the kerogen or clay minerals,
and (b) that usually requires the use of hydraulic fracturing to
achieve economic production rates.
These after income tax net present values reflect the tax burden
on the Company’s Tishomingo Field interests on a standalone basis,
do not consider the business-entity-level tax situation, or tax
planning and do not provide an estimate of the value at the level
of the business entity, which may be significantly different. The
financial statements and the management’s discussion and analysis
(MD&A) of the Company should be consulted for information at
the level of the business entity.
Readers are referred to the Company’s Form 51-101F1 Statement of
Reserves Data and Other Oil & Gas Information for the year
ended December 31, 2021, which can be accessed electronically from
the SEDAR website at www.sedar.com, for additional information.
“BOEs” refers to barrels of oil equivalent. BOEs/boes may be
misleading, particularly if used in isolation. A boe conversion
ratio of 6 Mcf:1 Bbl is based on an energy equivalency conversion
method primarily applicable at the burner tip and does not
represent a value equivalency at the wellhead. Possible reserves
are those additional reserves that are less certain to be recovered
than probable reserves. There is a 10% probability that the
quantities actually recovered will equal or exceed the sum of
provided plus probable plus possible reserves. The present value of
estimated future net revenues referred to herein does not represent
fair market value and should not be construed as the current market
value of estimated crude oil and natural gas reserves attributable
to the Company’s properties. Readers should be aware that
references to initial production rates and other short-term
production rates are preliminary in nature and are not necessarily
indicative of long-term performance or of ultimate recovery.
About Kolibri Global Energy Inc.
Kolibri Global Energy Inc. is an international energy company
focused on finding and exploiting energy projects in oil, gas and
clean and sustainable energy. 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. The
Company's shares are traded on the Toronto Stock Exchange under the
stock symbol KEI and on the OTCQB under the stock symbol KGEIF.
Caution Regarding Forward-Looking Information
Certain statements contained in this news release constitute
"forward-looking information" as such term is used in applicable
Canadian securities laws, including statements regarding estimates
of reserves and future net revenue, expectations regarding
additional reserves and statements regarding Caney wells
development, including plans, anticipated results and timing.
Forward-looking information is subject to a variety of risks and
uncertainties and other factors that could cause plans, estimates
and actual results to vary materially from those projected in such
forward-looking information. Estimated reserves and future net
revenue have been independently evaluated by NSAI with an effective
date of December 31, 2021. This evaluation is based on a limited
number of wells with limited production history and includes a
number of assumptions relating to factors such as availability of
capital to fund required infrastructure, commodity prices,
production performance of the wells drilled, successful drilling of
infill wells, the assumed effects of regulation by government
agencies and future capital and operating costs. All of these
estimates will vary from actual results. Estimates of the
recoverable oil and natural gas reserves attributable to any
particular group of properties, classifications of such reserves
based on risk of recovery and estimates of future net revenues
expected therefrom, will vary. The Company's actual production,
revenues, taxes, development and operating expenditures with
respect to its reserves will vary from such estimates, and such
variances could be material. Estimates of after-tax net present
value are dependent on a number of factors including utilization of
tax-loss carry forwards. In addition to the foregoing, other
significant factors or uncertainties that may affect either the
Company’s reserves or the future net revenue associated with such
reserves include material changes to existing taxation or royalty
rates and/or regulations, and changes to environmental laws and
regulations. Forward-looking information regarding Caney wells
development and expectations regarding additional reserves are
based on plans and estimates of management and interpretations of
exploration information by the Company's exploration team at the
date the information is provided and is subject to several factors
and assumptions of management, including that required regulatory
approvals and capital will be available when required, that
completion techniques require further optimization, that production
rates do not match the Company’s assumptions, that very low or no
production rates are achieved, that the demand for oil and gas will
be sustained, that the price of oil will be sustained or increase,
that no unforeseen delays, unexpected geological or other effects,
equipment failures, permitting delays or labor or contract disputes
or shortages are encountered, that the development plans of the
Company and its co-venturers will not change, and is subject to a
variety of risks and uncertainties and other factors that could
cause plans, estimates and actual results to vary materially from
those projected in such forward-looking information, including that
anticipated results and estimated costs will not be consistent with
managements’ expectations, the risk of commodity price and foreign
exchange rate fluctuations, the Company or its subsidiaries not
being able for any reason to obtain and provide the information
necessary to secure required approvals or that required regulatory
approvals are otherwise not available when required, that capital
is not available when required, that unexpected geological results
are encountered and that equipment failures, permitting delays or
labor or contract disputes or shortages are encountered.
Information on other important economic factors or significant
uncertainties that may affect components of the reserves data and
the other forward looking statements in this release are contained
in the Company’s Form 51-101F1 Statement of Reserves Data and Other
Oil & Gas Information for the year ended December 31, 2021, the
Company’s Management Discussion and Analysis and the Company’s
Annual Information Form under "Risk Factors", which are available
under the Company's profile at www.SEDAR.com. The Company
undertakes no obligation to update forward-looking statements,
other than as required by applicable law.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220308005565/en/
Wolf E. Regener +1 (805) 484-3613 Email:
wregener@kolibrienergy.com Website: www.kolibrienergy.com
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