Kolibri Global Energy Inc. Announces Bank Line Increase to $50 Million

Rhea-AI Summary

Kolibri Global Energy announced a 25% increase in the borrowing base of its subsidiary BNK Petroleum's revolving line of credit with BOK Financial, bringing it from $40 million to $50 million.

This provides additional flexibility for the company, which currently has $32 million drawn on the credit facility. The increase supports ongoing development and cash flow growth initiatives for Kolibri's Tishomingo project.

Other terms of the credit facility remain unchanged.

Positive

• Increase in borrowing base from $40 million to $50 million.
• Enhanced financial flexibility for development and cash flow growth.
• Continued support from BOK Financial.

Negative

• Current outstanding debt on the credit facility is $32 million.

Insights

Financial Analyst

Kolibri Global Energy Inc. (KEI) has announced a 25% increase in its borrowing base from $40 million to $50 million for its subsidiary BNK Petroleum (US) Inc. This increase in the revolving line of credit, provided by BOK Financial (BOKF), reflects a positive outlook from the lender regarding KEI's ongoing projects and financial stability.

From a financial perspective, this increase in credit line enhances KEI's liquidity and financial flexibility, allowing them to fund the development of the Tishomingo project more effectively. The current outstanding amount of $32 million suggests that they still have significant headroom to draw an additional $18 million, which can be used for operational and developmental activities without additional financing burdens.

In the short term, this increase in borrowing capacity reduces the risk of cash flow constraints and can support KEI's production goals. In the long term, it can contribute to the company's growth trajectory if managed prudently. However, it's important for investors to monitor how the additional funds are utilized and whether the company can generate sufficient returns to justify the increased borrowing capacity.

Market Research Analyst

The Tishomingo project, which is the primary beneficiary of this increased credit line, is a important asset for KEI. By securing additional funds, KEI can accelerate development activities, potentially leading to higher production volumes and improved cash flows.

For investors, the success of this project is paramount. The increased borrowing base is a positive indicator of confidence from the lender. However, investors should remain cautious about the execution risks associated with the project. Factors such as operational efficiency, market conditions and regulatory changes could impact the outcomes.

In summary, while the additional borrowing capacity is a promising development, the real impact will depend on KEI's ability to effectively deploy these funds and achieve the intended production growth and cash flow improvements.

THOUSAND OAKS, Calif.--(BUSINESS WIRE)-- Kolibri Global Energy Inc. (the “Company” or “KEI”) (TSX: KEI, NASDAQ: KGEI) is pleased to announce that the Borrowing Base of its indirect wholly owned subsidiary BNK Petroleum (US) Inc. was increased from US$40 million to US$50 million on its revolving line of credit (“Credit Facility”) from BOK Financial (“BOKF”), an increase of 25%. The current outstanding amount drawn on the Credit Facility is US$32 million.

Wolf Regener, President and CEO, commented, “We are very pleased to have BOKF’s continued support as we continue the development of our Tishomingo project. The 25% increase in our borrowing base provides us with more flexibility and supports our production and cash flow growth initiatives and demonstrates the value of the field.”

The other terms of the credit facility remain the same.

About Kolibri Global Energy Inc.

Kolibri Global Energy Inc. 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240514553768/en/

For further information:

Wolf E. Regener +1 (805) 484-3613

Email: wregener@kolibrienergy.com

Website: www.kolibrienergy.com

Source: Kolibri Global Energy Inc.

FAQ

What is the new borrowing base for Kolibri Global Energy's credit facility?

The new borrowing base for Kolibri Global Energy's credit facility is $50 million.

How much has Kolibri Global Energy's borrowing base increased?

Kolibri Global Energy's borrowing base has increased by 25%, from $40 million to $50 million.

What is the current outstanding amount drawn on Kolibri Global Energy's credit facility?

The current outstanding amount drawn on Kolibri Global Energy's credit facility is $32 million.

Which financial institution increased Kolibri Global Energy's borrowing base?

BOK Financial increased Kolibri Global Energy's borrowing base.

What is the ticker symbol for Kolibri Global Energy on NASDAQ?

The ticker symbol for Kolibri Global Energy on NASDAQ is KGEI.