Kolibri Global Energy Inc. Achieves Its Best Ever 30 Day Initial Production Rate of 940 BOEPD From the Barnes 7-3H Well
18 April 2022 - 1:30PM
Business Wire
Kolibri Global Energy Inc. (the “Company” or
“KEI”) (TSX: KEI, OTCQB: KGEIF) is pleased to announce that
the Barnes 7-3H well (98.07% working interest) has averaged over
940 Barrels of oil equivalent per day (BOEPD), of which over 740
barrels are oil, for 30 days. The Company also announces that the
Barnes 8-4H well (99.8% working interest) has been successfully
completed and is now flowing back the stimulation fluids. Both
wells are located in the Company’s Tishomingo field in
Oklahoma.
Wolf Regener, President and CEO, commented. “I am thrilled that
the Barnes 7-3H well continues to perform exceptionally well. This
is the highest producing Caney well that we have ever had due to
the knowledge we have gained in this field and a great job of
execution by our team. To put the performance of this well in
perspective, the 30-day proved forecast curve case initial
production rate (IP30) utilized by our third-party engineering firm
for our reserve report is 388 BOEPD or 41% of what the Barnes 7-3H
IP30 rate is. The initial 30-day type curve utilized by the
Company’s management assumes a 472 BOEPD IP30 rate, which is half
of the Barnes 7-3H IP30 rate. The Glenn 16-2H well, which was
previously our best performing Caney well, had a 630 BOEPD IP30
rate, and it is projected to produce 765,000 barrels of oil
equivalents (BOEs) based on our third-party engineering firm
estimates”.
“The Barnes 8-4H well completion went very well thanks to the
performance of our team with 10.3 million pounds of proppant being
placed using the same stimulation design as was used on the Barnes
7-3H. The well is now flowing back the stimulation fluids, and we
will share production rates with the market over the coming weeks.
While the Barnes 8-4H well completion design and execution has been
similar to the Barnes 7-3H well, we do not need rates as high as
the Barnes 7-3H to make excellent wells. For example, if the Barnes
8-4H well performance matches the type curve utilized by the
Company’s management, the well would be projected to generate a
145% Internal Rate of Return at a $100 a barrel oil price.”
We look forward to bringing on the additional new unhedged
production at the current $100 a barrel oil price, which would add
significant additional cash flow assuming the type curve utilized
by the Company’s management is achieved.”
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.
Cautionary Statements
In this news release and the Company’s other public disclosure:
The references to barrels of oil equivalent ("Boes") reflect
natural gas, natural gas liquids and oil. 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. Given that the value ratio based
on the current price of crude oil as compared to natural gas is
significantly different from the energy equivalency of 6:1,
utilizing a conversion on a 6:1 basis may be misleading as an
indication of value. 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 proved plus probable plus
possible reserves. The type curve utilized by the Company’s
management is the average of the 7 Caney wells that are located in
the Corridor (well names can be found on the Company’s Corporate
presentation), with lateral lengths normalized to a 4,900 ft
lateral length, the other assumptions are the same as in the
Company’s December 31, 2021 independent reserves evaluation.
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. Readers are referred to the full
description of the results of the Company's December 31, 2021
independent reserves evaluation and other oil and gas information
contained in its Form 51-101F1 Statement of Reserves Data and Other
Oil and Gas Information for the year ended December 31, 2021, which
the Company filed on SEDAR on March 8, 2022.
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 and “forward-looking statements” within
the meaning of United States securities laws (collectively,
“forward looking information”), including statements regarding the
timing of and expected results from planned wells development, the
expected timing to finish completion operations, the expected
timing of stabilized production rates, a projected Internal Rate of
Return, $100 a barrel oil price, and the Company bringing on
additional new production with unhedged current pricing of over
$100 per barrel. Forward-looking information is based on plans and
estimates of management and interpretations of data by the
Company's technical team at the date the data is provided and is
subject to several factors and assumptions of management, including
that that indications of early results are reasonably accurate
predictors of the prospectiveness of the shale intervals,
management’s assumption of a 472 BOEPD IP30 rate for the initial
30-day type curve, $100 a barrel oil price, that required
regulatory approvals will be available when required, that no
unforeseen delays, unexpected geological or other effects,
including flooding and extended interruptions due to inclement or
hazardous weather conditions, equipment failures, permitting delays
or labor or contract disputes are encountered, that the necessary
labor and equipment will be obtained, that the development plans of
the Company and its co-venturers will not change, that the offset
operator’s operations will proceed as expected by management, that
the demand for oil and gas will be sustained, that the price of oil
will be sustained or increase, that the Company will continue to be
able to access sufficient capital through financings, farm-ins or
other participation arrangements to maintain its projects, and that
global economic conditions will not deteriorate in a manner that
has an adverse impact on the Company's business, its ability to
advance its business strategy and the industry as a whole.
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. Factors that could cause the
forward-looking information in this news release to change or to be
inaccurate include, but are not limited to, the risk that any of
the assumptions on which such forward looking information is based
vary or prove to be invalid, including that the Company or its
subsidiaries is not 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 unexpected geological results are encountered, that equipment
failures, permitting delays, labor or contract disputes or
shortages of equipment or labor are encountered, the risks
associated with the oil and gas industry (e.g. operational risks in
development, exploration and production; delays or changes in plans
with respect to exploration and development projects or capital
expenditures; the uncertainty of reserve and resource estimates and
projections relating to production, costs and expenses, and health,
safety and environmental risks, including flooding and extended
interruptions due to inclement or hazardous weather conditions),
the risk of commodity price and foreign exchange rate fluctuations,
that the offset operator’s operations have unexpected adverse
effects on the Company’s operations, 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 price of oil will decline, that the Company is
unable to access required capital, that occurrences such as those
that are assumed will not occur, do in fact occur, and those
conditions that are assumed will continue or improve, do not
continue or improve, and the other risks and uncertainties
applicable to exploration and development activities and the
Company's business as set forth in the Company's management
discussion and analysis and its annual information form, both of
which are available for viewing under the Company's profile at
www.sedar.com, any of which could result in delays, cessation in
planned work or loss of one or more concessions and have an adverse
effect on the Company and its financial condition. The Company
undertakes no obligation to update these forward-looking
statements, other than as required by applicable law.
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version on businesswire.com: https://www.businesswire.com/news/home/20220418005214/en/
Wolf E. Regener +1 (805) 484-3613 Email:
wregener@kolibrienergy.com Website: www.kolibrienergy.com
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