Kolibri Global Energy Announces Third Quarter 2022 Net Income of US$9.3 Million and Adjusted EBITDA of US$6.9 Million
THOUSAND OAKS, Calif.–(BUSINESS WIRE)–All amounts are in U.S. Dollars unless otherwise indicated:
THIRD QUARTER 2022 HIGHLIGHTS
- Adjusted EBITDA(1) was $6.9 million in the third quarter of 2022 compared to $1.7 million in the third quarter of 2021, an increase of 296%. The increase was primarily due to an increase in production of 77% and an increase in average prices of 43%, partially offset by higher realized losses from commodity contracts in the third quarter of 2022
- Net income for the third quarter of 2022 was $9.3 million compared to net income of $0.6 million for the third quarter of 2021 due to increases in average prices and production and an unrealized gain on commodity contracts of $4.6 million in the third quarter of 2022
- Revenue, net of royalties was $9.9 million in the third quarter of 2022 compared to $3.9 million for the third quarter of 2021, which was an increase of 152%, as average prices increased by 43% and production increased by 77%
- Average netback from operations(2) for the third quarter of 2022 was $55.16/boe, an increase of 54% from the prior year third quarter due to higher prices in 2022. Average netback including commodity contracts(2) for the third quarter of 2022 was $49.69 per boe, an increase of 84% from the prior year third quarter
- Average production for the third quarter of 2022 was 1,702 BOEPD, an increase of 77% compared to third quarter 2021 production of 960 BOEPD. This increase is due to production from the Barnes 7-3H well and the Barnes 8-4H well
- Production and operating expenses per barrel averaged $7.77 per BOE in the third quarter of 2022 compared to $8.40 per BOE in the second quarter of 2021, a decrease of 8%. The decrease was due to increased production which reduced the per barrel fixed costs partially offset by higher production taxes due to an increase in prices
- In October 2022, the credit facility was redetermined and the borrowing base was increased from $20 million to $25 million. After the redetermination, the Company has $8.8 million of available borrowing capacity
- Adjusted EBITDA is considered a non-GAAP measure. Refer to the section entitled “Non-GAAP Measures” of this earnings release.
- Netback from operations and netback including commodity contracts are considered non-GAAP ratios. Refer to the section entitled “Non-GAAP Measures” of this earnings release.
KEI’s President and Chief Executive Officer, Wolf Regener commented:
“We are pleased that the Company generated third quarter 2022 adjusted EBITDA(1) of $6.9 million which was an increase of almost 300% from the prior year quarter. The Barnes 7-3H well and the Barnes 8-4H well, the first two wells in our 2022 drilling program, continue to exceed management’s type curve.
We are excited that we will bring three wells into production during the fourth quarter. The Company has just completed drilling the Glenn 16-3H well, which is the fifth well in our 2022 drilling program. The Emery 17-2H and Brock 9-3H wells have already been drilled. Completion operations on the Emery 17-2H well have begun, with production expected later in November. The completion operations on the Brock 9-3H well and the Glenn 16-3H well will be done concurrently immediately after the Emery 17-2H well with production expected in December.
Average production for the third quarter of 2022 was 1,702 BOEPD, an increase of 77% compared to third quarter 2021 production of 960 BOEPD due to new production from the Barnes 7-3H well and the Barnes 8-4H well.
Adjusted EBITDA(1) was $6.9 million for the third quarter of 2022 compared to $1.7 million for the prior year third quarter, an increase of 296%. The increase was primarily due to an increase in average prices of 43% and an increase in production of 77%, partially offset by higher realized losses from commodity contracts in the third quarter of 2022.
Net income in the third quarter of 2022 was $9.3 million, compared to a net income of $0.6 million in the third quarter of 2021. The increases were due to higher production and higher average prices and an unrealized gain on commodity contracts of $4.6 million in the third quarter of 2022.
Netback from operations(2) increased to $55.16 per BOE in the third quarter of 2022 compared to $35.87 per BOE in the third quarter of 2021, an increase of 54%. Netback including commodity contracts(2) for the third quarter of 2022 was $49.69 per BOE, an increase of 84% from the prior year third quarter. The 2022 increases compared to the same periods in the prior year were due to the increase in average prices.
Net revenue was $9.9 million in the third quarter of 2022 compared to $3.9 million for third quarter of 2021, which was an increase of 152% due to higher prices and higher production.
Operating expenses averaged $7.77 per BOE in the third quarter of 2022 compared to $8.40 per BOE in the third quarter of 2021, a decrease of 8%. The decrease was due to increased production which reduced the per barrel fixed costs partially offset by higher production taxes due to an increase in prices.
In October 2022, the credit facility with BOK Financial was redetermined and the borrowing base was increased from $20 million to $25 million. After the redetermination, the Company now has $8.8 million of available borrowing capacity.”
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Third Quarter |
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First Nine Months |
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2022 |
|
2021 |
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% |
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2022 |
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2021 |
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% |
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Net Income (Loss): |
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$ Thousands |
$9,299 |
|
$608 |
|
1,429 |
|
$13,850 |
|
$(1,338) |
|
– |
|
|
$ per common share |
$0.26 |
|
$0.03 |
|
767 |
|
$0.39 |
|
$(0.06) |
|
– |
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assuming dilution |
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Capital Expenditures |
$4,940 |
|
$47 |
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10,411% |
|
$19,913 |
|
$137 |
|
14,435 |
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Average Production (Boepd) |
1,702 |
|
960 |
|
77% |
|
1,563 |
|
991 |
|
58% |
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Average Price per Barrel |
$80.89 |
|
$56.49 |
|
43% |
|
$84.19 |
|
$50.58 |
|
66% |
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Average Netback from operations(2) per Barrel |
$55.16 |
|
$35.87 |
|
54% |
|
$57.05 |
|
$31.45 |
|
81% |
|
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Average Netback including commodity contracts(2) per Barrel |
$49.69 |
|
$27.04 |
|
84% |
|
$48.50 |
|
$25.08 |
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93% |
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September 2022 |
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June 2022 |
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December 2021 |
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Cash and Cash Equivalents |
$ 4,878 |
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$ 2,889 |
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$ 7,316 |
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Working Capital |
$ 2,839 |
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$(2,030) |
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$ 3,823 |
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| (1) |
Adjusted EBITDA is considered a non-GAAP measure. Refer to the section entitled “Non-GAAP Measures” of this earnings release. |
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| (2) |
Netback from operations and netback including commodity contracts are considered non-GAAP ratios. Refer to the section entitled “Non-GAAP Measures” of this earnings release. |
Third Quarter 2022 versus Third Quarter 2021
Oil and gas gross revenues totaled $12.7 million in the third quarter of 2022 versus $5.0 million in the third quarter of 2021. Oil revenues increased $6.7 million or 162% to $10.8 million as average oil prices increased by $23.91 per barrel or 34% to $93.52 and oil production increased by 95% to 1,252 boepd. Natural gas revenues increased by $0.7 or 219% to $1.0 million as natural gas prices increased $6.12/mcf or 149% and average natural gas production increased by 238 mcfpd or 28%. Natural gas liquids (NGLs) revenues increased $0.3 million or 55% as NGL prices increased 3% to $35.33/boe and NGL production increased by 91 boepd or 51%.
Average third quarter 2022 production per day increased 742 boepd or 77% from the third quarter of 2021. The increase was due to new production from the Barnes 7-3H well and the Barnes 8-4H well.
Production and operating expenses increased to $1.2 million in the third quarter of 2022, an increase of 64%. Operating expenses averaged $7.77 per BOE for the third quarter of 2022 compared to $8.40 per BOE for the same period in 2021. The decrease was due to increased production which reduced the per barrel fixed costs partially offset by higher production taxes due to an increase in prices.
Depletion and depreciation expense increased $1.0 million or 113% due to increased production and a higher PP&E balance after the reversal of previous impairment in the fourth quarter of 2021.
General and administrative expenses increased $0.3 million or 39% in the third quarter of 2022 due to due to increases in payroll costs and director fees in 2022 and additional non-recurring professional costs related to the share consolidation process.
Interest expense increased by 19% in the third quarter of 2022 compared to the same period in the prior year due to higher interest rates partially offset by principal payments on the credit which reduced the outstanding loan balance.
Finance income increased by $4.6 million in the third quarter of 2022 compared to the third quarter of 2021 due to realized gains on commodity contracts in the third quarter of 2022.
FIRST NINE MONTHS 2022 HIGHLIGHTS
- Adjusted EBITDA(1) was $18.3 million in the first nine months of 2022 compared to $4.7 million in the first nine months of 2021, an increase of 288%. The increase was primarily due to an increase in average prices of 66% and an increase in production of 58%, partially offset by higher realized losses from commodity contracts in the first nine months of 2022
- Net income for the first nine months of 2022 was $13.9 million compared to net loss of $1.3 million for the third quarter of 2021 due to increases in average prices and production and an unrealized gain on commodity contracts of $1.6 million in the first nine months of 2022
- Revenue, net of royalties was $27.8 million in the first nine months of 2022 compared to $10.7 million for first nine months of 2021, an increase of 160%, due to an increase in average production and average prices
- Average netback from operations(2) for the first nine months of 2022 was $57.05/boe, an increase of 81% from the prior year period due to higher prices in 2022. Netback including commodity contracts(2) for the first nine months of 2022 was $48.50/boe which was 93% higher than the prior year period
- Average production for the first nine months of 2022 was 1,563 BOEPD, an increase of 58% compared to first nine months 2021 production of 991 BOEPD. This increase is due to production from the Barnes 7-3H well and the Barnes 8-4H well
- Production and operating expenses per barrel averaged $8.17 per BOE in the both the first nine months of 2022 and 2021 as the decrease from increased production which reduced the per barrel fixed costs was offset by higher production taxes due to an increase in prices
- Adjusted EBITDA is considered a non-GAAP measure. Refer to the section entitled “Non-GAAP Measures” of this earnings release.
- Netback from operations and netback including commodity contracts are considered non-GAAP ratios. Refer to the section entitled “Non-GAAP Measures” of this earnings release.
First Nine Months of 2022 versus First Nine Months of 2021
Oil and gas gross revenues totaled $35.9 million in the first nine months of 2022 versus $13.7 million in the first nine months of 2021, an increase of 163%. Oil revenues were $31.3 million in the first nine months of 2022 versus $11.5 million in the same period of 2021, an increase of 172% as average oil prices increased 60% to $100.91 a barrel and oil production increased by 69% to 1,137 boepd. Natural gas revenues increased $1.3 million or 157% due to an average natural gas price increase of 106% and a 25% increase in natural gas production. NGL revenue increased $1.1 million or 86% due to an average NGL price increase of 33% and an increase in NGL production of 40% in the first nine months of 2022 compared to the comparable prior year period.
Average production per day for the first nine months of 2022 increased 58% from the prior year comparable period. The increase was due to new production from the Barnes 7-3H well and the Barnes 8-4H well.
Production and operating expenses increased to $3.5 million or 58% in the first nine months of 2022 compared to the prior year period. Production and operating expenses per barrel averaged $8.17 per BOE in the both the first nine months of 2022 and 2021 as the decrease from increased production which reduced the per barrel fixed costs was offset by higher production taxes due to an increase in prices.
Depletion and depreciation expense increased $2.4 million due to increased production and a higher PP&E balance after the reversal of previous impairment in the fourth quarter of 2021.
General and administrative expenses increased $0.4 million or 17% in the first nine months of 2022 due to due to increases in payroll costs and director fees in 2022 and additional non-recurring professional costs related to the share consolidation process.
Finance income increased by $1.6 million due to unrealized gains on financial commodity contracts recorded in 2022.
Finance expense decreased $1.0 million in the first nine months of 2022 due to an unrealized loss on commodity contracts of $3.0 million in 2021 partially offset by higher realized losses on commodity contracts which increased by $2.0 million compared to the prior year period.
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KOLIBRI GLOBAL ENERGY INC. |
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CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION |
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(Unaudited, Expressed in Thousands of United States Dollars) |
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($000 except as noted) |
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September 30 |
December 31 |
|||||||
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Current Assets |
||||||||
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Cash and cash equivalents |
$ |
4,878 |
|
$ |
7,316 |
|
||
|
Trade and other receivables |
|
4,233 |
|
|
1,999 |
|
||
|
Other current assets |
|
1,407 |
|
|
587 |
|
||
|
|
|
10,518 |
|
|
9,902 |
|
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Non-current assets |
||||||||
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Property, plant and equipment |
|
162,116 |
|
|
147,114 |
|
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Total Assets |
$ |
172,634 |
|
$ |
157,016 |
|
||
|
Current Liabilities |
||||||||
|
Trade and other payables |
$ |
6,883 |
|
$ |
3,145 |
|
||
|
Current portion of loans and borrowings |
|
– |
|
|
1,000 |
|
||
|
Lease payable |
|
26 |
|
|
43 |
|
||
|
Fair value of commodity contracts |
|
770 |
|
|
1,891 |
|
||
|
|
|
7,679 |
|
|
6,079 |
|
||
|
|
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|
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Non-current liabilities |
|
|
||||||
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Loans and borrowings |
|
15,855 |
|
|
15,866 |
|
||
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Asset retirement obligations |
|
1,617 |
|
|
1,398 |
|
||
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Fair value of commodity contracts |
|
99 |
|
|
585 |
|
||
|
Lease payable |
|
27 |
|
|
||||
|
|
|
17,598 |
|
|
17,849 |
|
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Equity |
||||||||
|
Share capital |
|
296,221 |
|
|
296,060 |
|
||
|
Contributed surplus |
|
23,206 |
|
|
22,948 |
|
||
|
Deficit |
|
(172,070 |
) |
|
(185,920 |
) |
||
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Total Equity |
|
147,357 |
|
|
133,088 |
|
||
|
Total Equity and Liabilities |
$ |
172,634 |
|
$ |
157,016 |
|
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KOLIBRI GLOBAL ENERGY INC. |
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) |
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(Unaudited, expressed in Thousands of United States dollars, except per share amounts) |
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($000 except as noted) |
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Third Quarter |
First Nine Months |
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|
2022 |
2021 |
2022 |
2021 |
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|
|
|
|
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|
Oil and natural gas revenue, net |
$ |
9,851 |
|
$ |
3,909 |
|
$ |
27,826 |
|
$ |
10,717 |
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|||
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Other income |
|
16 |
|
|
1 |
|
|
45 |
|
|
2 |
|
|||
|
|
|
9,867 |
|
|
3,910 |
|
|
27,871 |
|
|
10,719 |
|
|||
|
|
|
|
|
|
|||||||||||
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Production and operating expenses |
|
1,216 |
|
|
742 |
|
|
3,487 |
|
|
2,209 |
|
|||
|
Depletion and depreciation expense |
|
1,860 |
|
|
874 |
|
|
5,086 |
|
|
2,679 |
|
|||
|
General and administrative expenses |
|
905 |
|
|
650 |
|
|
2,435 |
|
|
2,075 |
|
|||
|
Stock based compensation |
|
75 |
|
|
– |
|
|
232 |
|
|
– |
|
|||
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Gain on forgiven loan |
|
– |
|
|
– |
|
|
– |
|
|
(303 |
) |
|||
|
|
|
4,056 |
|
|
2,266 |
|
|
11,240 |
|
|
6,660 |
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|||
|
|
|
|
|
|
|||||||||||
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Finance income |
|
4,648 |
|
|
– |
|
|
1,611 |
|
|
– |
|
|||
|
Finance expense |
|
(1,160 |
) |
|
(1,036 |
) |
|
(4,392 |
) |
|
(5,397 |
) |
|||
|
|
|
|
|
|
|||||||||||
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Net income (loss) |
|
9,299 |
|
|
608 |
|
|
13,850 |
|
|
(1,338 |
) |
|||
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Net income (loss) per share |
$ |
0.26 |
|
$ |
0.03 |
|
$ |
0.39 |
|
$ |
(0.06 |
) |
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KOLIBRI GLOBAL ENERGY INC. |
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THIRD QUARTER 2022 |
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(Unaudited, expressed in Thousands of United States dollars, except as noted) |
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Third Quarter |
First Nine Months |
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2022 |
2021 |
2022 |
2021 |
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Oil revenue before royalties |
$ |
10,773 |
|
|
4,104 |
|
|
31,317 |
|
|
11,528 |
|
||||
|
Gas revenue before royalties |
|
1,020 |
|
|
320 |
|
|
2,161 |
|
|
842 |
|
||||
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NGL revenue before royalties |
|
873 |
|
|
564 |
|
|
2,443 |
|
|
1,314 |
|
||||
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Oil and Gas gross revenue |
|
12,666 |
|
|
4,988 |
|
|
35,921 |
|
|
13,684 |
|
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|
|
|
|
|
|
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Adjusted EBITDA(1) |
|
6,874 |
|
|
1,737 |
|
|
18,258 |
|
|
4,711 |
|
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|
Additions to property, plant & equipment |
|
4,940 |
|
|
47 |
|
|
19,913 |
|
|
137 |
|
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|
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Statistics: |
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|
3rd Quarter |
First Nine Months |
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|
|
2022 |
2021 |
2022 |
2021 |
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Average oil production (Bopd) |
|
1,252 |
|
|
641 |
|
|
1,137 |
|
|
671 |
|
||||
|
Average natural gas production (mcf/d) |
|
1,083 |
|
|
845 |
|
|
1,093 |
|
|
877 |
|
||||
|
Average NGL production (Boepd) |
|
269 |
|
|
178 |
|
|
244 |
|
|
174 |
|
||||
|
Average production (Boepd) |
|
1,702 |
|
|
960 |
|
|
1,563 |
|
|
991 |
|
||||
|
Average oil price ($/bbl) |
$ |
93.52 |
|
$ |
69.61 |
|
$ |
100.91 |
|
$ |
62.96 |
|
||||
|
Average natural gas price ($/mcf) |
$ |
10.24 |
|
$ |
4.12 |
|
$ |
7.24 |
|
$ |
3.52 |
|
||||
|
Average NGL price ($/bbl) |
$ |
35.33 |
|
$ |
34.36 |
|
$ |
36.63 |
|
$ |
27.61 |
|
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|
|
|
|
|
|
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|
Average price (Boe) |
$ |
80.89 |
|
$ |
56.49 |
|
$ |
84.19 |
|
$ |
50.58 |
|
||||
|
Royalties (Boe) |
|
17.96 |
|
|
12.22 |
|
|
18.97 |
|
|
10.96 |
|
||||
|
Operating expenses (Boe) |
|
7.77 |
|
|
8.40 |
|
|
8.17 |
|
|
8.17 |
|
||||
|
Netback from operations(2) (Boe) |
$ |
55.16 |
|
$ |
35.87 |
|
$ |
57.05 |
|
$ |
31.45 |
|
||||
|
Price impact from commodity contracts(3) (Boe) |
|
(5.47 |
) |
|
(8.83 |
) |
|
(8.55 |
) |
|
(6.37 |
) |
||||
|
Netback including commodity contracts(2) (Boe) |
$ |
49.69 |
|
$ |
27.04 |
|
$ |
48.50 |
|
$ |
25.08 |
|
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(1) |
Adjusted EBITDA is considered a non-GAAP measure. Refer to the section entitled “Non-GAAP Measures” of this earnings release. |
|
|
(2) |
Netback from operations and netback including commodity contracts are considered non-GAAP ratios. Refer to the section entitled “Non-GAAP Measures” of this earnings release. |
|
|
(3) |
Price impact from commodity contracts includes the positive or negative adjustment to the average price per barrel that the Company realized from its commodity contracts. |
The information outlined above is extracted from and should be read in conjunction with the Company’s unaudited financial statements for the three and nine months ended September 30, 2022 and the related management’s discussion and analysis thereof, copies of which are available under the Company’s profile at www.sedar.com.
NON-GAAP MEASURES
Netback from operations, netback including commodity contracts and adjusted EBITDA (collectively, the “Company’s Non-GAAP Measures”) are not measures or ratios recognized under Canadian generally accepted accounting principles (“GAAP“) and do not have any standardized meanings prescribed by IFRS. Management of the Company believes that such measures and ratios are relevant for evaluating returns on each of the Company’s projects as well as the performance of the enterprise as a whole. The Company’s Non-GAAP Measures may differ from similar computations as reported by other similar organizations and, accordingly, may not be comparable to similar non-GAAP measures and ratios as reported by such organizations. The Company’s Non-GAAP Measures should not be construed as alternatives to net income, cash flows related to operating activities, working capital or other financial measures and ratios determined in accordance with IFRS, as an indicator of the Company’s performance.
An explanation of how the Company’s Non-GAAP Measures provide useful information to an investor and the purposes for which the Company’s management uses the Non-GAAP Measures is set out in the management’s discussion and analysis under the heading “Non-GAAP Measures” which is available under the Company’s profile at www.sedar.com and is incorporated by reference into this earnings release.
The following is the reconciliation of the non-GAAP ratio netback from operations to net income (loss) from continuing operations, which the Company considers to be the most directly comparable financial measure that is disclosed in the Company’s financial statements:
|
(US $000) |
Three months ended September 30, |
Nine months ended September 30, |
||||
|
2022 |
2021 |
|
2022 |
2021 |
||
|
Net income (loss) |
9,299 |
608 |
13,850 |
(1,338) |
||
|
Adjustments: |
||||||
|
Finance income |
(4,648) |
– |
(1,611) |
– |
||
|
Finance expense |
1,160 |
1,036 |
4,392 |
5,397 |
||
|
Stock based compensation |
75 |
– |
232 |
– |
||
|
General and administrative expenses |
905 |
650 |
2,435 |
2,075 |
||
|
Depletion, depreciation and amortization |
1,860 |
874 |
5,086 |
2,679 |
||
|
Impairment of PP&E |
– |
– |
– |
– |
||
|
Other income |
(16) |
(1) |
(45) |
(303) |
||
|
Operating netback |
8,635 |
3,168 |
24,339 |
8,510 |
||
|
Netback from operations per BOE |
55.16 |
35.87 |
57.05 |
31.45 |
||
Adjusted EBITDA is calculated as net income before interest, taxes, depletion and depreciation and other non-cash and non-operating gains and losses. The Company considers this a key measure as it demonstrates its ability to generate cash from operations necessary for future growth excluding non-cash items, gains and losses that are not part of the normal operations of the company and financing costs. The following is the reconciliation of the non-GAAP measure adjusted EBITDA:
|
(US $000) |
Three months ended September 30, |
Nine months ended September 30, |
||||
|
2022 |
2021 |
2022 |
2021 |
|||
|
Net income (loss) |
9,299 |
608 |
|
13,850 |
(1,338) |
|
|
Depletion and depreciation |
1,860 |
874 |
|
5,086 |
2,679 |
|
|
Accretion |
8 |
6 |
|
20 |
19 |
|
|
Interest expense |
281 |
237 |
|
718 |
700 |
|
|
Unrealized (gain) loss on commodity contracts |
(4,648) |
11 |
|
(1,608) |
2,953 |
|
|
Share based compensation |
75 |
– |
|
232 |
– |
|
|
Interest income |
– |
– |
(3) |
– |
||
|
Other income |
(16) |
(1) |
(45) |
(305) |
||
|
Foreign currency (gain) loss |
15 |
2 |
8 |
3 |
||
|
Adjusted EBITDA |
6,874 |
1,737 |
18,258 |
4,711 |
||
CAUTIONARY STATEMENTS
In this news release and the Company’s other public disclosure:
- The Company’s natural gas production is reported in thousands of cubic feet (“Mcfs“). The Company also uses references to barrels (“Bbls“) and barrels of oil equivalent (“Boes“) to reflect natural gas liquids and oil production and sales. 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. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.
- Discounted and undiscounted net present value of future net revenues attributable to reserves do not represent fair market value.
- 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.
- The Company discloses peak and 30-day initial production rates and other short-term production rates. Readers are cautioned that such production rates are preliminary in nature and are not necessarily indicative of long-term performance or of ultimate recovery.
Caution Regarding Forward-Looking Information
This release contains forward-looking information including information regarding the proposed timing and expected results of exploratory and development work including production from the Company’s Tishomingo field, Oklahoma acreage, expectations regarding cash flow, the Company’s reserves based loan facility, including scheduled repayments, expected hedging levels and the Company’s strategy and objectives. The use of any of the words “target”, “plans”, “anticipate”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “should”, “believe” and similar expressions are intended to identify forward-looking statements.
Such forward-looking information is based on management’s expectations and assumptions, including that the Company’s geologic and reservoir models and analysis will be validated, that indications of early results are reasonably accurate predictors of the prospectiveness of the shale intervals, that previous exploration results are indicative of future results and success, that expected production from future wells can be achieved as modeled and that declines will match the modeling, that future well production rates will be improved over existing wells, that rates of return as modeled can be achieved, that recoveries are consistent with management’s expectations, that additional wells are actually drilled and completed, that design and performance improvements will reduce development time and expense and improve productivity, that discoveries will prove to be economic, that anticipated results and estimated costs will be consistent with managements’ expectations, that all required permits and approvals and the necessary labor and equipment will be obtained, provided or available, as applicable, on terms that are acceptable to the Company, when required, that no unforeseen delays, unexpected geological or other effects, equipment failures, permitting delays or labor or contract disputes are encountered, that the development plans of the Company and its co-venturers will not change, that the demand for oil and gas will be sustained, that the Company will continue to be able to access sufficient capital through financings, credit facilities, farm-ins or other participation arrangements to maintain its projects, that the Company will continue in compliance with the covenants under its reserves-based loan facility and that the borrowing base will not be reduced, that funds will be available from the Company’s reserves based loan facility when required to fund planned operations, that the Company will not be adversely affected by changing government policies and regulations, social instability or other political, economic or diplomatic developments in the countries in which it operates and that global economic conditions will not deteriorate in a manner that has an adverse impact on the Company’s business and its ability to advance its business strategy.
Contacts
For further information, contact:
Wolf E. Regener, President and Chief Executive Officer +1 (805) 484-3613
Email: investorrelations@kolibrienergy.com
Website: www.kolibrienergy.com
