UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
6-K
Report
of Foreign Private Issuer
Pursuant
to Rule 13a-16
or 15d-16
UNDER
the Securities Exchange Act of 1934
For
the month of March 2024
Commission
File No.: 001-41824
Kolibri
Global Energy Inc.
(Translation
of registrant’s name into English)
925
Broadbeck Drive, Suite 220
Thousand
Oaks, CA 91320
(Address
of principal executive office)
Indicate
by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F: Form 20-F ☐ Form
40-F ☒
EXHIBIT
INDEX
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.
|
Kolibri Global Energy Inc.
|
Date:
March 21, 2024 |
By: |
/s/
Gary Johnson |
|
Name: |
Gary
Johnson |
|
Title: |
Chief
Financial Officer |
Exhibit
99.1
|
925
Broadbeck Drive, Suite 220,
Thousand Oaks, California 91320
Phone:
(805) 484-3613
TSX
ticker symbol: KEI
OTCQX ticker symbol: KGEIF |
For
Immediate Release
KOLIBRI
GLOBAL ENERGY INC. ANNOUNCES
PROVED
RESERVES WITH NET PRESENT VALUE OF US$483 MILLION
Thousand
Oaks CALIFORNIA, March 21, 2024 – Kolibri Global Energy Inc. (the “Company” or “KEI”)
(TSX: KEI), is providing the results of its December 31, 2023, independent reserves evaluation.
Wolf
Regener, President and CEO, commented: “We are very pleased with the growth of our Proved Developed Producing (“PDP”)
reserves, which grew by 33% as a result of the wells that we drilled and completed last year. Our percentage of PDP versus Total Proved
reserves increased to 24% from 18% last year as we continued to convert our proved undeveloped reserves into cash generating PDP wells.
We are also pleased that the Net Present Value (“NPV”) of the PDP reserves increased by 11% even as the forecast pricing
used in the reserve report decreased compared to the prior year.
“Our
Proved Reserves value of US$482.6 million (NPV discounted at 10%), decreased by 6% from the 2022 independent reserves evaluation. This
is attributed to the lower forecast pricing as well as the 1 million barrels of oil equivalent (“BOE”) the Company produced
in 2023.
“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 62.9% working interest, with a large integrated oil company participating with their ownership
interest. We expect our 2024 drilling program, which currently includes drilling and completing six to seven wells, to continue to significantly
increase the Company’s cash flow and add incremental value to our shareholders.”
Net
Present Value of Reserves discounted at 10%
● |
Total
Proved Reserves before tax of U.S. $482.6 million |
|
|
-
a decrease of 6% from the December 31, 2022, estimate |
● |
Proved
plus Probable Reserves before tax of U.S. $719.2 million |
|
|
-
a decrease of 1% from the December 31, 2022, estimate |
● |
Proved
plus Probable plus Possible Reserves before tax of U.S. $981 million |
|
|
-
an increase of 4% from the December 31, 2022, estimate |
The
evaluation of the Company’s reserves in the Caney formation of the Tishomingo Field in the SCOOP area of Oklahoma was conducted
by Netherland, Sewell & Associates, Inc. (“NSAI”) in accordance with National Instrument 51-101 – Standards
of Disclosure for Oil and Gas Activities.
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 |
● |
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 |
The
above total Proved reserves are attributed to the 31 Caney wells, four Woodford wells (4.9% working interest for the Company), and the
drilling of 47.76 net additional wells over the next four years. The Probable reserves are attributed to the drilling of 28.26 net additional
wells. The wells in NSAI’s 2023 report are planned at 107-acre spacing (6 wells per section) on approximately 14,111 net acres.
| |
Summary of Oil & Gas Reserves | |
| |
Tight Oil | | |
Shale Gas | | |
Natural Gas Liquids | | |
MBOE’s | |
Reserve Category | |
KEI Gross (Mbbl) | | |
Net (Mbbl) | | |
KEI Gross (MMcf) | | |
Net (MMcf) | | |
KEI (Mbbl) | | |
Net (Mbbl) | | |
KEI (Mbbl) | | |
Net (Mbbl) | |
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 |
As of December 31, 2023 |
Forecast Prices & Costs |
| |
Net Present Value of Future Net Revenue ($ millions) | |
| |
Before Income Tax | | |
After Income Tax | |
Reserve Category | |
| 0% | | |
| 5% | | |
| 10% | | |
| 15% | | |
| 20% | | |
| 0% | | |
| 5% | | |
| 10% | | |
| 15% | | |
| 20% | |
United States | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
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 U.S. dollars and may not add due to rounding.
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 10% probability that the quantities actually recovered will equal or exceed the sum of provided plus probable plus possible reserves.
The present value of estimated future net revenues referred to herein does not represent fair market value and should not be construed
as the current market value of estimated crude oil and natural gas reserves attributable to the Company’s properties. 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.
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.
For
further information, contact:
Wolf
E. Regener +1 (805) 484-3613
Email: wregener@kolibrienergy.com
Website: www.kolibrienergy.com
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 Caney wells development, including plans, anticipated results, and timing and the Company’s working
interest. 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. Estimated reserves and future net revenue
have been independently evaluated by NSAI with an effective date of December 31, 2023. This evaluation is based on a limited number of
wells with limited production history and includes a number of assumptions relating to factors such as availability of capital to fund
required infrastructure, commodity prices, production performance of the wells drilled, successful drilling of infill wells, the assumed
effects of regulation by government agencies and future capital and operating costs. All of these estimates will vary from actual results.
Estimates of the recoverable oil and natural gas reserves attributable to any particular group of properties, classifications of such
reserves based on risk of recovery and estimates of future net revenues expected therefrom, will vary. The Company’s actual production,
revenues, taxes, development and operating expenditures with respect to its reserves will vary from such estimates, and such variances
could be material. Estimates of after-tax net present value are dependent on a number of factors including utilization of tax-loss carry
forwards. In addition to the foregoing, other significant factors or uncertainties that may affect either the Company’s reserves
or the future net revenue associated with such reserves include material changes to existing taxation or royalty rates and/or regulations,
and changes to environmental laws and regulations. Forward-looking information regarding Caney wells development and expectations regarding
additional reserves are based on plans and estimates of management and interpretations of exploration information by the Company’s
exploration team at the date the information is provided and is subject to several factors and assumptions of management, including that
required regulatory approvals and capital will be available when required, 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 demand for
oil and gas will be sustained, that the price of oil will be sustained or increase, that no unforeseen delays, unexpected geological
or other effects, equipment failures, permitting delays or labor or contract disputes or shortages are encountered, that the development
plans of the Company and its co-venturers will not change, and 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, including
that anticipated results and estimated costs will not be consistent with managements’ expectations, the risk of commodity price
and foreign exchange rate fluctuations, the Company or its subsidiaries not being 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 capital
is not available when required, that unexpected geological results are encountered and that equipment failures, permitting delays or
labor or contract disputes or shortages are encountered.
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.
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