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 25, 2024 |
By: |
/s/
Gary Johnson |
|
Name: |
Gary
Johnson |
|
Title: |
Chief
Financial Officer |
Exhibit
99.1
![](https://www.sec.gov/Archives/edgar/data/1477081/000149315224011220/ex99-1_001.jpg)
FORM
51-101F1 –
AMENDED
AND RESTATED
STATEMENT
OF RESERVES DATA
AND
OTHER OIL AND GAS INFORMATION
For
the Year Ended December 31, 2023
March
25, 2024
TABLE
OF CONTENTS
PART
1: INTRODUCTION |
|
4 |
PART
2: DISCLOSURE OF RESERVES DATA |
|
5 |
2.1
Reserves Data (Forecast Prices and Costs) |
|
5 |
PART
3: PRICING ASSUMPTIONS |
|
7 |
3.1
Forecast Prices Used in Estimates |
|
7 |
PART
4: RECONCILIATIONS OF CHANGES IN RESERVES AND FUTURE NET REVENUE |
|
8 |
4.1
Reserves Reconciliation |
|
8 |
PART
5: ADDITIONAL INFORMATION RELATING TO RESERVES DATA |
|
9 |
5.1
Undeveloped Reserves |
|
9 |
5.2
Significant Factors or Uncertainties |
|
9 |
5.3
Future Development Costs |
|
10 |
PART
6: OTHER OIL AND GAS INFORMATION |
|
11 |
6.1
Oil and Gas Properties and Wells |
|
11 |
6.2
Properties with No Attributed Reserves |
|
12 |
6.3
Forward Contracts |
|
12 |
6.4
Tax Horizon |
|
13 |
6.5
Costs Incurred |
|
13 |
6.6
Exploration and Development Activities |
|
13 |
6.7
Production Estimates |
|
14 |
6.8
Production History |
|
14 |
PART
7: NOTES |
|
15 |
GLOSSARY
OF TERMS
“AIF”
refers to the Company’s Annual Information Form filed on SEDAR+
“AIT”
stands for ‘After Income Taxes’;
“BIT”
stands for ‘Before Income Taxes’;
“Company”
or “KGEI” means Kolibri Global Energy Inc.;
“NSAI”
means Netherland, Sewell & Associates, Inc., independent petroleum engineering consultants of Houston, Texas, U.S.;
“NI
51-101” refers to National Instrument 51-101; and
“Woodford
Sale” means the sale by BNK US of its Tishomingo field assets, excluding the Caney and Upper Sycamore formations, the completion
of which was announced by the Company on April 21, 2013.
Abbreviations
Bbl |
|
Barrel |
Bbls |
|
Barrels |
Bcfe |
|
Billion
cubic feet of gas equivalent |
Boe |
|
Barrels
of oil equivalent (converted at 6 Mcf to 1 Boe) |
Bopd |
|
Barrels
of oil per day |
Mbbls |
|
Thousand
barrels |
MMboe |
|
Millions
of barrels of oil equivalent |
Mcf |
|
Thousand
cubic feet |
MMcf |
|
Million
cubic feet |
Mcf/d |
|
Thousand
cubic feet per day |
Bcf |
|
Billion
cubic feet |
PART
1: INTRODUCTION
The
effective date of the information being provided in this statement is December 31, 2023. The preparation date of the information being
provided in this statement is March 25, 2024. For a glossary of terminology and definitions relating to the information included within
this statement (including the aforementioned dates), readers are referred to NI 51-101.
Amendment
and Restatement
This
statement has been amended and restated to correct and restate certain disclosure in the previous report filed March 20, 2024, a brief
description of which is set out below for ease of reference:
Reference |
|
Restatement |
Page
14: Table entitled “Summary of 2023 Company Share of Production & Netbacks”. |
|
Recalculation
of figures under the columns entitled “Q4” and “Total Year”. |
In
conjunction with the filing of this report, the Company has also filed an amended and restated Form 51-101F3 – Report of Management
and Directors on Oil and Gas Disclosure, which signifies that the Company’s management and directors have reviewed and approved
this report.
Reserves
and Future Net Revenue
The
following is a summary of the oil and natural gas reserves and the net present values of future net revenue of Kolibri Global Energy
Inc.’s wholly owned subsidiary BNK Petroleum (U.S.) Inc. as evaluated by NSAI. The Company’s only property with assigned
reserves and gathering revenue is the Tishomingo field in Oklahoma, U.S. NSAI is an independent qualified reserves evaluator appointed
by the Company pursuant to NI 51-101. Readers should note that totals in the following tables may not add due to rounding.
The
estimated future net revenue figures contained in the following tables do not necessarily represent the fair market value of the Company’s
reserves. There is no assurance that the forecast prices and cost assumptions used by NSAI in its report to the Company will be attained
and variances could be material. NSAI’s report to the Company contained additional assumptions relating to costs and other matters.
The recovery and reserves estimates attributed to the Company’s properties described herein are estimates only. The actual reserves
attributed to the Company’s properties may be greater or less than those calculated.
All
dollar values are expressed in U.S. dollars, unless otherwise indicated.
Cautionary
Statements
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 proved plus probable plus possible reserves.
BOEs
may be misleading, particularly if used in isolation. A boe conversion ratio of six mcf to one barrel is based on an energy equivalency
conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
PART
2: DISCLOSURE OF RESERVES DATA
2.1
Reserves Data (Forecast Prices and Costs)
| |
United States | |
| |
Tight Oil | | |
Shale Gas | | |
Natural Gas Liquids | |
Reserve Category | |
KGEI Gross
(Mbbl) | | |
Net
(Mbbl) | | |
KGEI Gross
(MMcf) | | |
Net
(MMcf) | | |
KGEI Gross
(Mbbl) | | |
Net
(Mbbl) | |
Proved | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Developed Producing | |
| 5,607 | | |
| 4,376 | | |
| 5,671 | | |
| 4,418 | | |
| 1,311 | | |
| 1,021 | |
Undeveloped | |
| 17,842 | | |
| 14,091 | | |
| 16,752 | | |
| 13,150 | | |
| 3,859 | | |
| 3,029 | |
Total Proved | |
| 23,449 | | |
| 18,466 | | |
| 22,422 | | |
| 17,568 | | |
| 5,170 | | |
| 4,051 | |
Probable | |
| 15,757 | | |
| 12,518 | | |
| 15,133 | | |
| 12,008 | | |
| 3,487 | | |
| 2,767 | |
Total Proved Plus Probable | |
| 39,205 | | |
| 30,984 | | |
| 37,555 | | |
| 29,576 | | |
| 8,656 | | |
| 6,817 | |
Possible | |
| 19,821 | | |
| 15,890 | | |
| 13,813 | | |
| 11,041 | | |
| 3,182 | | |
| 2,544 | |
Total Proved Plus Probable Plus Possible | |
| 59,026 | | |
| 46,875 | | |
| 51,368 | | |
| 40,617 | | |
| 11,838 | | |
| 9,361 | |
Notes:
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.
Summary of Oil & Gas Reserves
As of December 31, 2023
Forecast
Prices & Costs
| |
Reserves Total | |
Reserve Category | |
KGEI Gross (MBOE) | | |
Net (MBOE) | |
Proved | |
| | | |
| | |
Developed Producing | |
| 7,862 | | |
| 6,133 | |
Undeveloped | |
| 24,493 | | |
| 19,311 | |
Total Proved | |
| 32,355 | | |
| 25,444 | |
Probable | |
| 21,765 | | |
| 17,286 | |
Total Proved Plus Probable | |
| 54,120 | | |
| 42,731 | |
Possible | |
| 25,305 | | |
| 20,274 | |
Total Proved Plus Probable Plus Possible | |
| 79,425 | | |
| 63,005 | |
Note:
May not add due to rounding. Boe basis: 6 Mcf to 1 Bbl
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 | |
Notes:
May not add due to rounding. The after income tax net present values presented in the preceding table take into account available non-operating
tax losses of $128.9 million and reflect the tax burden on the Company’s Tishomingo Field interests on a standalone basis, do not
consider the business-entity-level tax situation or tax planning and do not provide an estimate of the value at the level of the business
entity, which may be significantly different. The financial statements and the management’s discussion and analysis (MD&A)
of the Company should be consulted for information at the level of the business entity.
Total Future Net Revenue (Undiscounted - by Reserve Category)
As of December 31, 2023
Forecast Prices & Costs ($ millions)
Reserve Category | |
Company Gross Revenue | | |
Royalties | | |
Operating Expenses | | |
Severance Taxes | | |
Develop. Costs | | |
Abandonment & Reclamation Costs | | |
Future Net Revenue BIT | | |
Income Taxes | | |
Future Net Revenue AIT | |
| |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| |
Total Proved | |
| 2,276.7 | | |
| 484.7 | | |
| 359.7 | | |
| 115.4 | | |
| 259.7 | | |
| 8.7 | | |
| 1,048.5 | | |
| 243.0 | | |
| 805.5 | |
Total Proved Plus Probable | |
| 3,977.3 | | |
| 834.7 | | |
| 632.9 | | |
| 203.9 | | |
| 437.7 | | |
| 13.8 | | |
| 1,854.3 | | |
| 456.1 | | |
| 1,398.2 | |
Total Proved Plus Probable Plus Possible | |
| 6,251.0 | | |
| 1,287.3 | | |
| 961.2 | | |
| 325.3 | | |
| 603.6 | | |
| 19.4 | | |
| 3,054.2 | | |
| 773.2 | | |
| 2,281.0 | |
Total Future Net Revenue (NPV discounted 10%, BIT by Reserve Category)
As of December 31, 2023
Forecast
Prices & Costs
| |
Tishomingo
Field - Tight Oil, NGL & Shale Gas | |
Reserve Category | |
$ millions | | |
Unit Value ($/boe) | |
| |
| | |
| |
Total Proved | |
| 482.6 | | |
| 19.0 | |
Total Proved Plus Probable | |
| 719.2 | | |
| 16.8 | |
Total Proved Plus Probable Plus Possible | |
| 981.0 | | |
| 15.6 | |
PART
3: PRICING ASSUMPTIONS
3.1
Forecast Prices Used in Estimates
Forecast
benchmark reference product price and inflation rate assumptions are summarized below. These forecast assumptions with adjustments were
provided in the NSAI report.
Summary of Pricing & Inflation Rate Assumptions
As of December 31, 2023
Forecast Prices & Costs
| |
| | |
United States | |
| |
WTI* | | |
Henry Hub* | | |
NGL | | |
Inflation Rate | |
Year | |
US$/bbl | | |
US$/MMbtu | | |
US$/bbl | | |
% | |
2024 | |
| 76.00 | | |
| 2.75 | | |
| 23.56 | | |
| | |
2025 | |
| 76.00 | | |
| 3.75 | | |
| 23.56 | | |
| | |
2026 | |
| 76.00 | | |
| 4.00 | | |
| 23.56 | | |
| | |
2027 | |
| 77.52 | | |
| 4.08 | | |
| 24.03 | | |
| | |
2028 | |
| 79.07 | | |
| 4.16 | | |
| 24.51 | | |
| | |
2029 | |
| 80.65 | | |
| 4.24 | | |
| 25.00 | | |
| | |
2030 | |
| 82.26 | | |
| 4.33 | | |
| 25.50 | | |
| | |
2031 | |
| 83.91 | | |
| 4.42 | | |
| 26.01 | | |
| | |
2032 | |
| 85.59 | | |
| 4.50 | | |
| 26.53 | | |
| | |
2033 | |
| 87.30 | | |
| 4.59 | | |
| 27.06 | | |
| | |
| |
| | | |
| | | |
| | | |
| 2.0 | |
Note:
Sproule Oil & Natural Gas Forecast from NSAI Report to the Company including adjustments for differentials; prices escalated @ 2%
after 2033.
2023
weighted average prices were: $76.34 for oil, $2.93 for natural gas and $20.89 for NGLs.
PART
4: RECONCILIATIONS OF CHANGES IN RESERVES AND FUTURE NET REVENUE
4.1
Reserves Reconciliation
A
reconciliation of changes to the Company’s gross (before deduction of royalties) proved, probable and proved plus probable reserves
is provided below. This reconciliation reflects changes to the Company’s reserves estimated using forecast prices and costs.
| |
United States | |
| |
Tight Oil | | |
Shale Gas | | |
Natural Gas Liquids | |
| |
Proved | | |
Probable | | |
Proved + Probable | | |
Proved | | |
Probable | | |
Proved + Probable | | |
Proved | | |
Probable | | |
Proved + Probable | |
| |
(Mbbl) | | |
(Mbbl) | | |
(Mbbl) | | |
(MMcf) | | |
(MMcf) | | |
(MMcf) | | |
(Mbbl) | | |
(Mbbl) | | |
(Mbbl) | |
31-Dec-22 | |
| 24,948.1 | | |
| 14,546.9 | | |
| 39,495.0 | | |
| 22,354.9 | | |
| 17,220.8 | | |
| 39,575.8 | | |
| 4,668.2 | | |
| 3,592.8 | | |
| 8,260.9 | |
Extensions | |
| 395.5 | | |
| 56.2 | | |
| 451.7 | | |
| 404.9 | | |
| 56.4 | | |
| 461.3 | | |
| 93.3 | | |
| 13.0 | | |
| 106.3 | |
Improved Recovery | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
Proved Additions | |
| 1.9 | | |
| (1.8 | ) | |
| 0.1 | | |
| 5.3 | | |
| (4.9 | ) | |
| 0.4 | | |
| 1.2 | | |
| (1.1 | ) | |
| 0.1 | |
Technical Revisions | |
| (1,114.2 | ) | |
| 1,155.3 | | |
| 41.1 | | |
| 251.9 | | |
| (2,139.2 | ) | |
| (1,887.5 | ) | |
| 545.7 | | |
| (118.2 | ) | |
| 427.6 | |
Discoveries | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
Acquisitions | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
Dispositions | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
Economic Factors | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
Production | |
| (782.7 | ) | |
| - | | |
| (782.7 | ) | |
| (594.9 | ) | |
| - | | |
| (594.9 | ) | |
| (138.8 | ) | |
| - | | |
| (138.8 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
31-Dec-23 | |
| 23,448.6 | | |
| 15,756.6 | | |
| 39,205.2 | | |
| 22,422.1 | | |
| 15,133.1 | | |
| 37,555.2 | | |
| 5,169.6 | | |
| 3,486.5 | | |
| 8,656.1 | |
Note:
May not add due to rounding. Boe basis: 6 Mcf to 1 Bbl. Changes under “Technical Revisions” include all changes due to revisions
in forecast parameters associated with all wells.
PART
5: ADDITIONAL INFORMATION RELATING TO RESERVES DATA
5.1
Undeveloped Reserves
The
Company’s undeveloped reserves exist in the Caney shale of its interests in the Tishomingo Field in Oklahoma, U.S. Most of these
reserves are designated within the undeveloped category because significant capital expenditures will be required in order to render
these reserves capable of production.
The
following tables disclose the proved undeveloped and probable undeveloped reserves from the Company’s current net interest in the
Tishomingo Field that were first attributed in each of the most recent three financial years:
| |
Oil (Mbbl) | | |
Natural Gas MMcf | | |
NGL | |
Proved Undeveloped Reserves | |
First Attributed | | |
Booked at Year End | | |
First Attributed | | |
Booked at Year End | | |
First Attributed | | |
Booked at Year End | |
12/31/2021 | |
| 585.5 | | |
| 17,466.1 | | |
| 748.7 | | |
| 17,704.0 | | |
| 196.7 | | |
| 3,615.2 | |
12/31/2022 | |
| 0.0 | | |
| 16,212.4 | | |
| 0.0 | | |
| 14,252.9 | | |
| 0.0 | | |
| 2,973.4 | |
12/31/2023 | |
| 0.0 | | |
| 14,090.5 | | |
| 0.0 | | |
| 13,149.8 | | |
| 55.9 | | |
| 3,029.3 | |
| |
Oil (Mbbl) | | |
Natural Gas MMcf | | |
NGL | |
Probable Undeveloped Reserves | |
First Attributed | | |
Booked at Year End | | |
First Attributed | | |
Booked at Year End | | |
First Attributed | | |
Booked at Year End | |
12/31/2021 | |
| 147.5 | | |
| 9,846.8 | | |
| 0.0 | | |
| 13,623.3 | | |
| 0.0 | | |
| 2,781.9 | |
12/31/2022 | |
| 4,462.2 | | |
| 11,126.5 | | |
| 3,265.5 | | |
| 13,264.3 | | |
| 742.8 | | |
| 2,767.1 | |
12/31/2023 | |
| 1,209.7 | | |
| 11,952.6 | | |
| 0.0 | | |
| 11,440.1 | | |
| 0.0 | | |
| 2,635.5 | |
Plans
for future development of these undeveloped reserves (based on Forecast Prices and Costs) are summarized below:
United
States of America Properties
Tishomingo
Field, Oklahoma
NSAI
assigns 24,493 Mboe (Company Gross Working Interest share) Proved Undeveloped and 20,750 Mboe (Company Gross Working Interest share)
Probable Undeveloped reserves to the Tishomingo Field. The Proved Undeveloped reserves are forecast to be recoverable from the drilling
of 11 wells in 2024 and 20, 20 and 9 wells in 2025, 2026 and 2027 respectively (10.79, 14.25, 14.67 and 8.05 net KGEI wells). The Probable
Undeveloped reserves are forecast to be recoverable from the drilling of 7 wells in 2026, 33 wells in 2027, 16 wells in 2028 and 1 in
2029 respectively (2.3, 20.48, 4.48 and 1 net KGEI wells).
The
production forecast is based on producing the existing wells and drilling the additional wells as listed above and applying the historical
production behavior to the undeveloped well locations.
5.2
Significant Factors or Uncertainties
Estimates
of economically recoverable oil and natural gas reserves (including natural gas liquids) and the future net cash flows therefrom are
based upon a number of variable factors and assumptions, 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.
Information
on other important economic factors or significant uncertainties that may affect components of the reserves data and other oil and gas
information contained in this Form 51-101F1 are contained in the Company’s Management Discussion and Analysis filed under the Company’s
profile at www.sedarplus.ca and in the AIF under “Risk Factors”.
5.3
Future Development Costs
A
summary of the estimated development costs deducted in the estimation of future net revenue attributable to various reserves categories
and prepared under various price and cost assumptions are summarized in the following table. The Company expects to fund its estimated
future development costs through some combination of internally generated cash flow and debt or equity financing. There can be no guarantee
that funds will be available when required to proceed with the development on the schedule contemplated herein or that the Board of Directors
of the Company will allocate funding to develop all of the reserves requiring development. Failure to develop such reserves could negatively
impact future net revenue.
Summary
of Estimated Development Costs Attributed to Reserves
Forecast
Prices & Costs
| |
Estimated Development Costs ($ millions) | |
| |
Total Proved | | |
Total Proved + Probable | |
United States | |
| | | |
| | |
2024 | |
| 55.0 | | |
| 55.0 | |
2025 | |
| 81.4 | | |
| 81.4 | |
2026 | |
| 85.2 | | |
| 104.1 | |
2027 | |
| 38.2 | | |
| 165.2 | |
2028+ | |
| - | | |
| 32.1 | |
Total | |
| 259.8 | | |
| 437.7 | |
PART
6: OTHER OIL AND GAS INFORMATION
6.1
Oil and Gas Properties and Wells
The
following discussion outlines the Company’s important properties, plants, facilities and installations:
United
States
Tishomingo
Field, Ardmore Basin, Oklahoma
In
Oklahoma, the Company currently holds approximately 17,168 net acres of Caney shale acreage in the Tishomingo Field near Ardmore, OK.
The Company originally drilled wells to the slightly deeper Woodford shale in this field. In April 2013, the Company sold some of its
rights in the Tishomingo Field, keeping the rights to the Caney and the upper Sycamore formations, where it had previously drilled and
tested two wells. Beginning in 2013, the Company began focusing primarily on developing the oily Caney shale. A subsequent transaction
in 2015 resulted in the Company obtaining a 4.9% working interest in one section and participating in four Woodford shale horizontal
wells which were completed in 2016. Over the years, the Company increased its net acreage position from about 12,500 to the current 17,168
net acres. The Company plans to continue development drilling in this field with the objective of increasing production and proved reserves.
The Company’s oil is trucked from the field and its wells are connected to a 3rd party gathering system, whose operator
markets and sells the gas and NGL’s.
In
2023, the Company drilled eight wells, and as of December 31st, 2023, has 31 completed Caney wells, all of which are on production. Production
increased from an average of approximately 1,640 BOEPD in 2022 to 2,796 BOEPD in 2023, with the production just over 1 million oil equivalent
barrels in 2023. KGEI’s 2023 year-end proved reserves were 32.4 million BOE, and its proved and probable reserves were 54.1 million
BOE.
Oil
& Gas Properties Associated with Reserves
As
of December 31, 2023
| |
| |
Acreage | |
|
|
| |
| |
Developed | | |
Undeveloped | | |
Total | |
|
|
Properties | |
Location | |
Gross | | |
Net | | |
Gross | | |
Net | | |
Gross | | |
Net | |
Plants, Facilities & Installation |
|
United States | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
|
|
Tishomingo | |
Oklahoma, U.S. | |
| 19,255 | | |
| 14,043 | | |
| 1,920 | | |
| 67 | | |
| 21,175 | | |
| 14,111 | |
|
|
| |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
|
|
Total | |
| |
| 19,255 | | |
| 14,043 | | |
| 1,920 | | |
| 67 | | |
| 21,175 | | |
| 14,111 | |
|
|
Oil
& Gas Properties Associated with Reserves
As
of December 31, 2023
| |
United States | | |
| | |
| | |
| | |
| |
| |
Tight Oil | | |
Shale Gas | | |
Natural Gas Liquids | | |
| | |
| | |
Total | |
| |
Gross | | |
Net | | |
Gross | | |
Net | | |
Gross | | |
Net | | |
Sus-pended (1) | | |
Service (2) | | |
Gross | | |
Net | |
| |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| |
Oklahoma Producing | |
| 31 | | |
| 29.2 | | |
| 4.0 | | |
| 0.2 | | |
| | | |
| | | |
| | | |
| | | |
| 35 | | |
| 29.4 | |
Oklahoma Non-Producing | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Total | |
| 31 | | |
| 29.2 | | |
| 4.0 | | |
| 0.2 | | |
| | | |
| | | |
| | | |
| | | |
| 35 | | |
| 29.4 | |
(1)
Suspended wells may be capable of production but which, for a variety of reasons, including, but not limited to lack of markets or development
are not placed on production at the present time. (2) Service wells are used for the disposal or injection of water or other in-field
service operations related to oil and gas product.
6.2
Properties with No Attributed Reserves
The
Company’s unproved properties, including those for which the Company expects its rights to explore, develop and exploit to expire
within one year, are outlined in the following table.
Properties
with no Attributed Reserves
As
of December 31, 2023
| |
| |
Undeveloped Acreage (Acres) | | |
Company Interest | | |
|
Properties | |
Location | |
Gross | | |
Net | | |
(%) | | |
Work Commitments
(existence, nature, timing & cost) |
United States | |
| |
| | | |
| | | |
| | | |
|
Tishomingo | |
Carter & Johnson County, OK | |
| 6,397 | | |
| 3,058 | | |
| 45 | | |
Held by production with working interest over numerous sections |
McIntosh County | |
McIntosh County, OK | |
| 3,800 | | |
| 67 | | |
| 3 | | |
Held by production with small interests spread over numerous sections. |
Total | |
| |
| 10,237 | | |
| 3,125 | | |
| | | |
|
6.3
Forward Contracts
The
Company is not bound by any agreements which may impact the realization of future full market prices for its oil and gas production as
described in this report, other than the financial commodity contracts listed below.
|
|
|
|
Total
Volume Hedged |
|
Price |
Commodity |
|
Period |
|
(BBLS) |
|
($/BBL) |
Oil
– WTI Put |
|
January
1, 2024 to March 31, 2024 |
|
25,500 |
|
$60.00 |
Oil
– WTI Swap |
|
January
1, 2024 to May 31, 2024 |
|
40,000 |
|
$62.77 |
Oil
– WTI Costless Collars |
|
January
1, 2024 to June 30, 2024 |
|
6,000 |
|
$65.00
- $79.50 |
Oil
– WTI Costless Collars |
|
January
1, 2024 to June 30, 2024 |
|
24,000 |
|
$65.00
- $86.00 |
Oil
– WTI Costless Collars |
|
January
1, 2024 to December 31, 2024 |
|
60,000 |
|
$65.00
- $89.50 |
Oil
– WTI Put |
|
April
1, 2024 to June 30, 2024 |
|
1,650 |
|
$60.00 |
Oil
– WTI Costless Collars |
|
April
1, 2024 to June 30, 2024 |
|
1,950 |
|
$65.00
- $94.55 |
Oil
– WTI Costless Collars |
|
June
1, 2024 to June 30, 2024 |
|
8,000 |
|
$60.00
- $78.15 |
Oil
– WTI Costless Collars |
|
July
1, 2024 to September 30, 2024 |
|
21,000 |
|
$60.00
- $86.65 |
Oil
– WTI Costless Collars |
|
July
1, 2024 to September 30, 2024 |
|
18,000 |
|
$60.00
- $78.00 |
Oil
– WTI Costless Collars |
|
July
1, 2024 to September 30, 2024 |
|
3,600 |
|
$65.00
- $90.65 |
Oil
– WTI Costless Collars |
|
October
1, 2024 to December 31, 2024 |
|
39,000 |
|
$60.00
- $82.50 |
Oil
– WTI Costless Collars |
|
January
1, 2025 to March 31, 2025 |
|
36,000 |
|
$60.00
- $77.00 |
Oil
– WTI Costless Collars |
|
April
1, 2025 to June 30, 2025 |
|
20,400 |
|
$60.00
- $75.40 |
Oil
– WTI Costless Collars |
|
April
1, 2025 to June 30, 2025 |
|
1,350 |
|
$65.00
- $82.54 |
Oil
– WTI Costless Collars |
|
July
1, 2025 to September 30, 2025 |
|
21,000 |
|
$65.00
- $82.00 |
Oil
– WTI Costless Collars |
|
July
1, 2025 to September 30, 2025 |
|
750 |
|
$65.00
- $80.50 |
The
Company has no transportation obligations or commitments for future deliveries which exceed its expected related future production from
proved reserves, as estimated using forecast prices and costs.
6.4
Tax Horizon
The
Company does not expect to be required to pay income taxes in the immediate foreseeable future.
6.5
Costs Incurred
For
the year ended December 31, 2023, the Company incurred costs related to its acquisition, exploration and development activities as outlined
in the following table.
|
|
Cost
Incurred ($ millions) |
|
|
United
States |
Property
Acquisition Costs |
|
|
Proved
Properties |
|
Nil |
Unproved
Properties/Wells |
|
Nil |
|
|
|
Exploration
Costs |
|
Nil |
Development
Costs |
|
53.2 |
6.6
Exploration and Development Activities
The
Company’s drilling activity and results for the year ended December 31, 2023, are summarized in the following table. It should
be noted that the data outlined in this table reflects those wells that the Company participated in and where the rig was released during
the period.
| |
Exploratory Wells | | |
Development Wells | |
| |
Gross | | |
Net | | |
Gross | | |
Net | |
United States | |
| | | |
| | | |
| | | |
| | |
Oil Wells | |
| 0.0 | | |
| 0.0 | | |
| 8.0 | | |
| 8.0 | |
Gas Wells | |
| 0.0 | | |
| 0.0 | | |
| 0.0 | | |
| 0.0 | |
Service Wells | |
| 0.0 | | |
| 0.0 | | |
| 0.0 | | |
| 0.0 | |
Stratigraphic Test Wells | |
| 0.0 | | |
| 0.0 | | |
| 0.0 | | |
| 0.0 | |
Dry Holes | |
| 0.0 | | |
| 0.0 | | |
| 0.0 | | |
| 0.0 | |
Total Wells | |
| 0.0 | | |
| 0.0 | | |
| 8.0 | | |
| 8.0 | |
The
Company’s exploration and development activities are summarized as follows:
United
States
During
fiscal year 2023 KGEI drilled 8 wells in its Tishomingo Field. The Company plans additional development drilling in the Tishomingo Field,
OK with the objective of increasing production and reserves.
6.7
Production Estimates
Estimated
production volumes (before Royalties) derived from the first year (2024) of the cash flow forecasts prepared in conjunction with the
Company’s reserves data included in the NSAI Report are provided in the following table.
Summary
of Production Estimates
Proved
+ Probable Reserves Case
For
Year 2024
| |
United States | | |
| |
| |
Tight Oil | | |
Shale Gas | | |
Natural Gas Liquids | | |
Company Total | |
Reserve Category | |
(Mbbl) | | |
(MMcf) | | |
(Mbbl) | | |
(Mboe) | |
| |
| | |
| | |
| | |
| |
United States | |
| | | |
| | | |
| | | |
| | |
Tishomingo, OK | |
| 1,283.5 | | |
| 987.9 | | |
| 227.9 | | |
| 1,676.1 | |
| |
| | | |
| | | |
| | | |
| | |
Total | |
| 1,283.4 | | |
| 987.9 | | |
| 227.9 | | |
| 1,676.1 | |
(1)
Significant fields represent greater than 20% of Company total (by country) of production in the first year of
forecast
6.8
Production History
The
Company’s historical production and netback data for period ended December 31, 2023 is presented below.
Summary
of 2023 Company Share of Production & Netbacks
| |
United States | |
| |
Q1 | | |
Q2 | | |
Q3 | | |
Q4 | | |
Total Year | |
| |
| | |
| | |
| | |
| | |
| |
Company share of daily production before deduction of royalties | |
| | | |
| | | |
| | | |
| | | |
| | |
Shale Gas (Mcf/d) | |
| 2,138 | | |
| 1,397 | | |
| 1,565 | | |
| 1,428 | | |
| 1,630 | |
Tight Oil (bopd) | |
| 2,431 | | |
| 1,821 | | |
| 2,083 | | |
| 2,245 | | |
| 2,144 | |
NGLs (bopd) | |
| 407 | | |
| 361 | | |
| 393 | | |
| 359 | | |
| 380 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Average ($/bbl or $/mcf) | |
| | | |
| | | |
| | | |
| | | |
| | |
Price received ($/boe) | |
| 62.87 | | |
| 58.00 | | |
| 65.04 | | |
| 65.76 | | |
| 63.10 | |
Royalties paid | |
| (13.16 | ) | |
| (11.98 | ) | |
| (14.42 | ) | |
| (14.34 | ) | |
| (13.52 | ) |
Production costs | |
| (6.04 | ) | |
| (6.05 | ) | |
| (7.34 | ) | |
| (7.02 | ) | |
| (6.61 | ) |
Netback from operations | |
| 43.67 | | |
| 39.97 | | |
| 43.28 | | |
| 44.40 | | |
| 42.97 | |
Price adjustment from commodity contracts | |
| (1.44 | ) | |
| (1.37 | ) | |
| (1.63 | ) | |
| (0.97 | ) | |
| (1.36 | ) |
Netback after adjustments | |
| 42.23 | | |
| 38.60 | | |
| 41.65 | | |
| 43.43 | | |
| 41.61 | |
Total Production (mboe before deductions of royalties) | |
| 287.5 | | |
| 219.8 | | |
| 251.8 | | |
| 261.5 | | |
| 1,020.6 | |
Boe
basis: 6 Mcf to 1 Bbl
PART
7: NOTES
The
following definitions and guidelines are contained in Section 5.4 of Volume 1 of the Canadian Oil and Gas Evaluation Handbook (Second
Edition, September 1, 2007) prepared jointly by The Society of Petroleum Evaluation Engineers (Calgary Chapter) and the Canadian Institute
of Mining, Metallurgy & Petroleum (Petroleum Society) (the “COGE Handbook”) and have been prepared by the Standing Committee
on Reserves Definitions of the CIM (Petroleum Society). Readers should consult the COGE Handbook for additional explanation and guidance.
Certain other terms used in this Listing Application have the meanings assigned to them in NI 51-101 and accompanying Companion Policy
51-101 CP, adopted by the Canadian securities regulatory authorities.
Gross
|
(a) |
In
relation to the Company’s interest in production or reserves, its “company gross reserves”, which are the Company’s
working interest (operating or non-operating) share before deduction of royalties and without including any royalty interest of the
Company. |
|
|
|
|
(b) |
In
relation to wells, the total number of wells in which the Company has an interest. |
|
|
|
|
(c) |
In
relation to properties, the total area of properties in which the Company has an interest. |
Net
|
(a) |
In
relation to the Company’s interest in production or reserves, the Company’s working interest (operating and non-operating)
share after deduction of royalty obligations, plus the Company’s royalty interests in production or reserves. |
|
|
|
|
(b) |
In
relation to the Company’s interest in a property, the total area in which the Company has an interest multiplied by the working
interest owned by the Company. |
The
following definitions apply to both estimates of individual reserves entities and the aggregate of reserves for multiple entities:
Reserve
Categories
Reserves
are estimated remaining quantities of oil and natural gas and related substances anticipated to be recoverable from known accumulations
from a given date forward, based on:
|
■ |
Analysis
of drilling, geological, geophysical and engineering data; |
|
|
|
|
■ |
The
use of established technology; and |
|
|
|
|
■ |
Specified
economic conditions |
Reserves
are classified according to the degree of certainty associated with the estimates:
|
(a) |
Proved
reserves are those reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual
remaining quantities recovered will exceed the estimated proved reserves. |
|
|
|
|
(b) |
Probable
reserves are those additional reserves that are less certain to be recovered than proved reserves. It is equally likely that the
actual remaining quantities recovered will be greater or less than the sum of the estimated proved plus probable reserves. |
Development
and Production Status
Each
of the reserve categories (proved and probable) may be divided into developed and undeveloped categories:
|
(a) |
Developed
reserves are those reserves that are expected to be recovered from existing wells and installed facilities or, if facilities
have not been installed, that would involve a low expenditure (for example, when compared to the cost of drilling a well) to put
the reserves on production. The developed category may be subdivided into producing and non-producing. |
|
(i) |
Developed
producing reserves are those reserves that are expected to be recovered from completion intervals open at the time of the
estimate. These reserves may be currently producing or, if shut-in, they must have previously been on production, and the date of
resumption of production must be known with reasonable certainty. |
|
|
|
|
(ii) |
Developed
non-producing reserves are those reserves that either have not been on production, or have previously been on production,
but are shut-in, and the date of resumption of production is unknown. |
|
(b) |
Undeveloped
reserves are those reserves expected to be recovered from known accumulations where a significant expenditure (for example,
when compared to the cost of drilling a well) is required to render them capable of production. They must fully meet the requirements
of the reserves classification (proved, probable) to which they are assigned. |
In
multi-well pools it may be appropriate to allocate total pool reserves between the developed and undeveloped categories or to subdivide
the developed reserves for the pool between developed producing and developed non-producing. This allocation should be based on the estimator’s
assessment as to the reserves that will be recovered from specific wells, facilities and completion intervals in the pool and their respective
development and production status.
Levels
of Certainty for Reported Reserves
The
qualitative certainty levels referred to in the definitions above are applicable to individual reserve entities (which refers to the
lowest level at which reserves calculations are performed) and to reported reserves (which refers to the highest level sum of individual
entity estimates for which reserves are presented). Reported reserves should target the following levels of certainty under a specific
set of economic conditions:
|
■ |
At
least a 90 percent probability that the quantities actually recovered will equal or exceed the estimated proved reserves; and |
|
|
|
|
■ |
At
least a 50 percent probability that the quantities actually recovered will equal or exceed the sum of the estimated proved plus probable
reserves. |
A
quantitative measure of the certainty levels pertaining to estimates prepared for the various reserves categories is desirable to provide
a clearer understanding of the associated risks and uncertainties. However, the majority of reserves estimates will be prepared using
deterministic methods that do not provide a mathematically derived quantitative measure of probability. In principle, there should be
no difference between estimates prepared using probabilistic or deterministic methods.
Forecast
prices and costs
Future
prices and costs that are:
|
(a) |
Generally
accepted as being a reasonable outlook of the future; and |
|
|
|
|
(b) |
If,
and only to the extent that, there are fixed or presently determinable future prices or costs to which the Company is legally bound
by a contractual or other obligation to supply a physical product, including those for an extension period of a contract that is
likely to be extended, those prices or costs rather than the prices and costs referred to in paragraph (a). |
The
forecast summary pricing table identifies benchmark reference pricing that apply to the Company.
Exhibit
99.2
AMENDED
AND RESTATED FORM 51-101F3
REPORT
OF MANAGEMENT AND DIRECTORS ON RESERVES DATA AND OTHER INFORMATION
Management
of Kolibri Global Energy Inc. (the “Company”) is responsible for the preparation and disclosure of information with respect
to the Company’s oil and gas activities in accordance with securities regulatory requirements. This information includes reserve
data.
An
independent qualified reserve evaluator has evaluated and reviewed the Company’s reserves data. The report of the independent qualified
reserves evaluator was previously filed with the securities regulatory authorities on March 20, 2024. An amended and restated Form 51-101F1
report based on the previously filed report by the qualified reserves evaluator is being submitted herewith.
The
Reserves Committee of the Board of Directors of the Company has:
| 1. | reviewed
the Company’s procedures for providing information to the independent qualified reserves
evaluator. |
| 2. | met
with the independent qualified reserves evaluator to determine whether any restrictions affected
the ability of the independent qualified reserves evaluator to report without reservation;
and |
| 3. | reviewed
the reserves data with management and the independent qualified reserves evaluator. |
The
Reserves Committee of the Board of Directors has reviewed the Company’s procedures for assembling and reporting other information
associated with oil and gas activities and has reviewed that information with management. The Board of Directors has, on the recommendation
of the Reserves Committee, approved:
| 1. | the
content and filing with securities regulatory authorities of an amended and restated Form
51-101F1 containing reserves data and other oil and gas information. |
| 2. | the
filing of Form 51-101F2, which is the report of the independent qualified reserves evaluators
on the reserves data; and |
| 3. | the
content and filing of this report. |
Because
the reserves data are based on judgments regarding future events, actual results will vary and the variations may be material.
“Wolf
Regener” |
|
WOLF
REGENER, |
|
President
& Chief Executive Officer |
|
|
|
“Gary
Johnson” |
|
GARY
JOHNSON, |
|
Chief
Financial Officer & Vice President |
|
|
|
“Leslie
O’Connor” |
|
LESLIE
O’CONNOR, |
|
Director |
|
|
|
“Evan
Templeton” |
|
EVAN
TEMPLETON, |
|
Director |
|
|
|
Dated
this 25th day of March, 2024 |
|
Kolibri Global Energy (QX) (USOTC:KGEIF)
Historical Stock Chart
From Jul 2024 to Aug 2024
Kolibri Global Energy (QX) (USOTC:KGEIF)
Historical Stock Chart
From Aug 2023 to Aug 2024