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Operations Update: Kolibri Global Energy Inc. Reports Initial Flow Rates of Barnes 7-4H & 7-5H Wells

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Kolibri Global Energy Inc. Provides Operations Update and Initial Flow Rates for Barnes 7-4H & 7-5H Wells

Kolibri Global Energy Inc. is pleased to share an operations update for its Tishomingo field in Oklahoma. The Barnes 7-4H and 7-5H wells, drilled and completed in the Lower Caney Formation, are currently flowing back fracture stimulation fluid. Over the past seven days, the Barnes 7-4H well has averaged 686 Barrels of oil equivalent per day (BOEPD) with 534 barrels of oil per day (BOPD), while the Barnes 7-5H well has averaged 624 BOEPD with 472 BOPD. These initial flow rates indicate higher production rates compared to the Barnes 8-1H and 8-2H Caney wells.

Drilling and Completion Operations

The Emery 17-3H and 17-4H wells, both Lower Caney formation wells, have been drilled and completed, and drilling is currently underway for the Emery 17-5H well, which is a T-Zone well. Completion operations for all three wells are expected to commence in the first week of November.

Field Update and Guidance

The gathering system issues that were previously reported have been mostly resolved, although some minor impact on production remains. Kolibri Global Energy Inc. has updated its annual forecasted guidance, with revised exit rate production projected to be between 5,000 and 6,000 BOEPD, representing a 25% to 50% increase from fiscal year 2022. The average production is expected to range from 3,100 to 3,400 BOEPD, showing significant growth of 89% to 107% compared to 2022. Revenue is forecasted to be between US$57 million and US$62 million, while Adjusted EBITDA is projected to range from US$45 million to US$50 million. The Company also anticipates annual capital expenditures to be in the range of US$51 million to US$56 million, with net debt expected to be between US$24 million and US$26 million. In conclusion, Kolibri Global Energy Inc.'s operations update and initial flow rates for the Barnes 7-4H and 7-5H wells demonstrate promising results in the Lower Caney Formation. The Company's drilling and completion operations are progressing, and the updated guidance reflects the anticipated growth and potential of its Tishomingo field operations. The recent operations update from Kolibri Global Energy Inc. could have profound implications for new businesses in the energy sector. The company's Barnes 7-4H and 7-5H wells in the Lower Caney Formation are showing promising initial flow rates, notably higher than the Barnes 8-1H and 8-2H Caney wells. This suggests that the Lower Caney Formation could be a profitable area for exploration and drilling, a potential boon for new businesses looking to enter the industry. Moreover, Kolibri's successful drilling and completion operations indicate that the company has effectively streamlined its processes, potentially setting a new standard for efficiency in the sector. New businesses could learn from Kolibri's operations to optimize their own drilling and completion processes. However, the company's updated guidance also reveals that it anticipates significant growth in production and revenue, which could heighten competition in the sector. New businesses will need to ensure they can compete effectively, both in terms of production capacity and cost-efficiency. Finally, Kolibri's resolution of its gathering system issues demonstrates the importance of robust infrastructure for successful operations. New businesses should take note and invest in reliable, efficient systems to avoid production disruptions. In conclusion, while Kolibri's update presents potential opportunities, it also underscores the challenges that new businesses in the energy sector may face.
Story First Published at: https://financialpost.com/pmn/business-wire-news-releases-pmn/kolibri-global-energy-inc-operations-update-and-initial-flow-rates-barnes-7-4h-7-5h-wells
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