Kolibri Global Energy Inc. Announces Bank Line Increase

Rhea-AI Summary

Kolibri Global Energy Inc. (KGEIF) has announced an increase in its borrowing base to US$25 million from BOK Financial, up from US$16.2 million currently drawn. This boost allows its subsidiary, BNK Petroleum (US) Inc., to access an additional US$8.8 million for developing the Tishomingo project in Oklahoma. The credit facility features interest-only payments until June 2026, indicating strong financial backing and flexibility for the company's growth initiatives.

Positive

• Increased borrowing base to US$25 million, enhancing financial flexibility.
• Allows an additional US$8.8 million drawdown for Tishomingo project development.

Negative

• None.

THOUSAND OAKS, Calif.--(BUSINESS WIRE)-- Kolibri Global Energy Inc. (the “Company” or “KEI”) (TSX: KEI, OTCQX: KGEIF) is pleased to announce that its indirect wholly owned subsidiary BNK Petroleum (US) Inc. (“BNK US”) has obtained an increase in its Borrowing Base to US$25 million on its revolving line of credit (“Credit Facility”) from BOK Financial (“BOKF”). The current outstanding amount drawn on the Credit Facility is US$16.2 million.

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

The increase in available borrowing capacity gives BNK US the ability to drawdown an additional US$8.8 million for the further development of the Company’s Tishomingo field in Oklahoma. The facility provides for interest only payments until the June 2026 maturity date, with bi-annual scheduled reserve redeterminations.

About Kolibri Global Energy Inc.

Kolibri Global Energy Inc. is a North American 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 OTCQX 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 and “forward-looking statements” within the meaning of United States securities laws (collectively, “forward looking information”), including statements regarding the Credit Facility and the Company’s initiatives.

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 cost inflation of over 20% for the three remaining wells planned for 2022, work and operations in the Company’s 2022 drill program being completed on schedule, future operating costs, forecast prices and costs, estimated production, capital and other expenditures, plans for expected results of drilling activity, that anticipated results and estimated costs will be consistent with management’s expectations, 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 or 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 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221012005485/en/

Wolf E. Regener  +1 (805) 484-3613

Email: wregener@kolibrienergy.com

Website: www.kolibrienergy.com

Source: Kolibri Global Energy Inc.

FAQ

What is the recent borrowing base increase announced by Kolibri Global Energy Inc. (KGEIF)?

Kolibri Global Energy Inc. announced an increase in its borrowing base to US$25 million, allowing its subsidiary access to additional funds for development.

How much additional funding can BNK Petroleum access for its Tishomingo project?

BNK Petroleum can access an additional US$8.8 million for the Tishomingo project following the increase in the borrowing base.

What is the maturity date for Kolibri Global Energy's credit facility with BOK Financial?

The maturity date for the credit facility is June 2026, with interest-only payments until that date.