Kolibri Global Energy Inc. Announces Proved Reserves With Net Present Value of US$483 Million
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Insights
The recent report by Kolibri Global Energy Inc. highlights a 33% growth in Proved Developed Producing (PDP) reserves, which is a significant metric for investors as it directly correlates to the company's current production capabilities and cash flow generation. Despite a 6% decrease in the Net Present Value (NPV) of Proved Reserves, attributed to lower forecast pricing and production of 1 million barrels of oil equivalent (BOE), the company's ability to increase its PDP reserves is a positive indicator of its operational efficiency and strategy to convert undeveloped reserves into producing wells.
From a financial perspective, the 11% increase in the NPV of PDP reserves despite lower forecast pricing suggests a strong operational performance. This could potentially mitigate the impact of the overall 6% NPV decrease in Proved Reserves and the 1% decrease in Proved plus Probable Reserves. The company's upcoming drilling program, which includes six to seven wells, is expected to further enhance cash flow and shareholder value, potentially leading to a reevaluation of the company's stock by investors.
The technical details within the report provide insight into the operational strategy of Kolibri Global Energy Inc. The increase in PDP reserves by 33% is indicative of successful drilling and completion activities over the past year. The conversion of proved undeveloped reserves into PDP wells demonstrates the company's focus on developing its existing assets, which is important for maintaining production levels and ensuring a steady revenue stream.
The planned drilling at 107-acre spacing suggests an efficient use of the Caney formation within the Tishomingo Field, optimizing resource recovery while likely reducing environmental impact through fewer surface disturbances. The partnership with a large integrated oil company on the next two wells could provide additional technical and financial resources, enhancing the probability of successful exploitation of these reserves.
Assessing the market implications of KEI's reserves evaluation, one must consider the broader industry context. The growth in PDP reserves amidst a backdrop of declining forecast pricing reflects a resilient operational model, which can be appealing to investors looking for stability in the volatile energy sector. The anticipated drilling program signals to the market that KEI is actively working to expand its reserve base and production profile, which could be a catalyst for future growth.
However, the 6% decrease in the NPV of Proved Reserves could raise concerns about the company's long-term profitability, especially if oil prices continue to fluctuate. Investors will be closely monitoring commodity prices and the company's ability to maintain cost efficiencies to ensure that the projected increase in cash flow and shareholder value materializes.
Wolf Regener, President and CEO, commented: “We are very pleased with the growth of our Proved Developed Producing (“PDP”) reserves, which grew by
“Our Proved Reserves value of
“We look forward to continuing our success with the next two wells, where drilling is scheduled to start in the first week of April. In these next two wells, the Company will have a
Net Present Value of Reserves discounted at
-
Total Proved Reserves before tax of
U.S. $482.6 million -
a decrease of
6% from the December 31, 2022, estimate
-
a decrease of
-
Proved plus Probable Reserves before tax of
U.S. $719.2 million -
a decrease of
1% from the December 31, 2022, estimate
-
a decrease of
-
Proved plus Probable plus Possible Reserves before tax of
U.S. $981 million -
an increase of
4% from the December 31, 2022, estimate
-
an increase of
The evaluation of the Company’s reserves in the
2023 Gross Reserves Summary
-
Total Proved Reserves 32.4 million Barrels of oil equivalent (BOE)
-
a decrease of
3% from the December 31, 2022, estimate
-
a decrease of
-
Proved plus Probable Reserves 54.1 million BOEs
- no change from the December 31, 2022, estimate
-
Proved plus Probable plus Possible Reserves 79.4 million BOEs
-
an increase of
3% from the December 31, 2022, estimate
-
an increase of
The above total Proved reserves are attributed to the 31 Caney wells, four
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Summary of Oil & Gas Reserves |
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|
Tight Oil |
Shale Gas |
Natural Gas Liquids |
MBOE's |
||||
Reserve Category |
KEI
|
Net
|
KEI
|
Net
|
KEI
|
Net
|
KEI
|
Net
|
Proved |
|
|
|
|
|
|
|
|
Developed Producing |
5,607 |
4,376 |
5,671 |
4,418 |
1,311 |
1,021 |
7,862 |
6,133 |
Undeveloped |
17,842 |
14,091 |
16,752 |
13,150 |
3,859 |
3,029 |
24,493 |
19,311 |
Total Proved |
23,449 |
18,466 |
22,422 |
17,568 |
5,170 |
4,051 |
32,355 |
25,444 |
Probable |
15,757 |
12,518 |
15,133 |
12,008 |
3,487 |
2,767 |
21,765 |
17,286 |
Total Proved Plus Probable |
39,205 |
30,984 |
37,555 |
29,576 |
8,656 |
6,817 |
54,120 |
42,731 |
Possible |
19,821 |
15,890 |
13,813 |
11,041 |
3,182 |
2,544 |
25,305 |
20,274 |
Total Proved Plus Probable Plus Possible |
59,026 |
46,875 |
51,368 |
40,617 |
11,838 |
9,361 |
79,425 |
63,005 |
Net Present Value of Future Net Revenue |
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As of December 31, 2023 |
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Forecast Prices & Costs |
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Net Present Value of Future Net Revenue ($ millions) |
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|
Before Income Tax |
After Income Tax |
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Reserve Category |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proved |
|
|
|
|
|
|
|
|
|
|
Developed Producing |
292.1 |
209.3 |
164.6 |
137.1 |
118.7 |
292.1 |
209.3 |
164.6 |
137.1 |
118.7 |
Undeveloped |
756.5 |
466.6 |
318.0 |
230.9 |
174.7 |
513.4 |
338.5 |
234.9 |
170.7 |
128.6 |
Total Proved |
1,048.5 |
675.9 |
482.6 |
368.0 |
293.4 |
805.5 |
547.8 |
399.5 |
307.8 |
247.3 |
Probable |
805.7 |
404.6 |
236.7 |
151.6 |
102.7 |
592.7 |
320.2 |
189.2 |
120.3 |
81.1 |
Total Proved Plus Probable |
1,854.3 |
1,080.5 |
719.2 |
519.6 |
396.1 |
1,398.2 |
868.0 |
588.7 |
428.1 |
328.4 |
Possible |
1,199.9 |
503.5 |
261.8 |
153.5 |
96.5 |
882.8 |
405.7 |
207.5 |
116.4 |
70.2 |
Total Proved Plus Probable plus Possible |
3,054.2 |
1,584.0 |
981.0 |
673.1 |
492.6 |
2,281.0 |
1,273.7 |
796.2 |
544.5 |
398.6 |
Note: All dollar values are expressed in |
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, 2023, which can be accessed electronically from the SEDAR website at www.sedarplus.ca, 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
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
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 and cash flow, expectations regarding additional reserves and statements regarding
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, 2023, 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.sedarplus.ca. 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/20240321644202/en/
Wolf E. Regener +1 (805) 484-3613
Email: wregener@kolibrienergy.com
Website: www.kolibrienergy.com
Source: Kolibri Global Energy Inc.
FAQ
What was the percentage growth in Proved Developed Producing reserves for Kolibri Global Energy Inc. (KEI)?
How much did the Net Present Value (NPV) of PDP reserves increase by for KEI?
Why did the Proved Reserves value decrease for KEI?
When is KEI scheduled to start drilling two new wells?
What is the working interest percentage for KEI in the next two wells?