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Kolibri Global Energy Inc. Begins Drilling Nickel Hill Wells
Rhea-AI Impact
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Rhea-AI Sentiment
(Negative)
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Rhea-AI Summary
Kolibri Global Energy Inc. announces the commencement of drilling at the Tishomingo field in Oklahoma. The Company will have a 62.9% working interest in the Nickel Hill 35-1H and 35-2H wells, with a major oil company as a partner. The drilling program is part of the 2024 plan, aiming to enhance cash flow.
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Insights
The initiation of drilling operations by Kolibri Global Energy Inc. in the Tishomingo field represents a strategic step in expanding the company's production capabilities. The 62.9% working interest in these wells demonstrates a significant stake, indicating potential for a notable increase in revenue streams upon successful completion. As the energy sector often faces volatility from geopolitical and market factors, the expansion of drilling operations could serve as a hedge against production disruptions elsewhere.
Investors should monitor the progress of these wells, as their completion aligns with the company's goal to enhance cash flow. However, it's essential to consider the risks associated with drilling, such as operational delays or lower than expected production volumes, which could impact projected financial outcomes. The partnership with a large integrated oil company may provide additional technical expertise and financial stability to the project.
For stakeholders of KEI, the commencement of drilling is a forward-looking indicator that may influence the company's stock performance. The market often reacts to such operational updates, especially when they suggest an increase in production capacity and potential cash flow. The dual completion of Nickel Hill 35-1H and 35-2H wells in May is a timeline that investors will likely keep an eye on, as it could lead to short-term stock price movements based on the anticipation of positive results.
Long-term implications include the sustainability of increased production levels and the impact on the company's balance sheet. If KEI manages to bring these wells into production without significant cost overruns, it could improve their financial ratios, potentially leading to a re-rating of the stock by analysts.
Understanding the broader market implications of KEI's drilling activity requires analyzing current energy demands and pricing trends. The oil and gas sector is heavily influenced by global supply and demand dynamics. With energy prices currently at elevated levels, the timing of bringing new wells online could be advantageous for KEI, assuming stable or increasing oil prices.
Moreover, investor sentiment in the energy sector is often swayed by environmental, social and governance (ESG) considerations. KEI's operational efficiency and adherence to environmental standards in the drilling process could play a role in attracting investment from funds with an ESG focus. This aspect, while not directly financial, can have a significant impact on the attractiveness of KEI to a broader range of investors.
THOUSAND OAKS, Calif.--(BUSINESS WIRE)--
Kolibri Global Energy Inc. (the “Company” or “KEI”) (TSX: KEI, NASDAQ: KGEI) is pleased to announce that drilling is underway in the Company’s Tishomingo field in Oklahoma.
Drilling began this week on the Nickel Hill 35-1H well and will be followed by the rig sliding over to drill the Nickel Hill 35-2H well. The Company will have a 62.9% working interest in these wells, with a large integrated oil company participating with their ownership interest.
Wolf Regener, President and CEO commented, “We are pleased to be continuing our 2024 drilling program and anticipate that both of these wells will be completed at the same time in May. We look forward to getting these wells on production to increase our cash flow further.”
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.
Cautionary Statements
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 Company’s working interest and the Company further increasing cash flow. 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 indications of early results are reasonably accurate predictors of the prospectiveness of the shale intervals, 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 cash flow, debt, 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, labor or materials 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 leases 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.
