Kolibri Global Energy (NASDAQ:KGEI) outlined its development plans for the Tishomingo Shale oil field in Oklahoma during an OTC Markets Oil and Gas Conference presentation led by President, Chief Executive Officer and Director Wolf Regener, with Chief Financial Officer and President Gary Johnson available for Q&A.
Focus on the Tishomingo Shale and balance sheet approach
Regener said the company operates as an oil and gas producer focused on the Tishomingo Shale, emphasizing what he described as a “very financially stable” approach, supported by “good solid balance sheet” characteristics and cash flow growth over the past few years. He added that Kolibri is “fully funded” for its 2026 drilling program using cash flow and an existing credit facility.
Reserves, inventory, and valuation commentary
Regener said Netherland, Sewell provides the company’s reservoir engineering work and has attributed 40 million barrels of proved reserves and about 57 million barrels of proved probable reserves. He noted the proved reserves mix is 29% proved developed producing and 71% proved undeveloped, which he said provides significant “running room” for future drilling.
On capital structure and valuation metrics, Regener said Kolibri has about 35.5 million shares outstanding and “no warrants or any other convertibles.” He cited a market capitalization of around $180 million and said net debt at the end of December 2023 was about $46 million, with an expectation that debt would be paid down through the first half of the year.
Regener contrasted the company’s enterprise value—he described it as roughly $225 million to $230 million—with what he called a reserve evaluation by Netherland, Sewell of roughly $440 million for the proved reserves. He also pointed to the oil-price assumptions in that evaluation, saying the 2026 oil price used was about $58 per barrel, rising to $63 in 2027 and $68 in 2028, which he characterized as “a lot lower than where oil prices are trading now.”
Production mix and operating footprint
Regener described Kolibri’s evolution from its earlier Woodford Shale activity toward the Caney formation, which he said is roughly 400 feet above the Woodford interval. He recounted that Exxon held significant acreage in the area and that Kolibri ultimately sold its Woodford position while retaining rights to intervals above it, including the Caney. He said the company has since expanded its acreage position to about 17,000 acres.
Regener said about 70% of production in the prior quarter came from oil, with the remainder from gas and natural gas liquids, and that natural gas is about 13% of what is produced from the ground. He added that in November, the production mix reached about 75% oil after bringing on wells in a more “oily window.”
He also said the field’s infrastructure is in place, with Exxon handling gas and natural gas liquids. Oil pricing has been “West Texas Intermediate, less about $1.85,” which Regener said has been consistent for several years.
2026 guidance and capital allocation priorities
Regener presented a base-case plan centered on drilling three wells, which he said could hold production “flat and actually grow it a little bit with a minimal drilling program.” Under that plan, Kolibri forecast:
- Production of 4,400 to 4,800 barrels of oil equivalent per day
- Revenue of “$75+ million”
- Adjusted EBITDA of $55 million to $60 million
- Capital expenditures of roughly $25 million (including paying bills related to late-2025 wells)
- Debt of $25 million to $30 million by year-end
Regener said the forecast is based on a $74 oil price assumption, and that adjusted EBITDA could rise 30% to 40% year over year under that scenario. He also said that for every $5 increase in the price of oil, adjusted EBITDA would increase by about $2.8 million, accounting for hedges.
He added that the company is using cash flow for debt reduction and share repurchases, noting Kolibri had repurchased about 650,000 shares. In response to a question on continued buybacks, Regener said management considers repurchases a potential use of incremental free cash flow, particularly if the company believes the stock is undervalued, while balancing that decision against investing in additional drilling.
Operational efficiencies and future upside
Regener described improvements in drilling times and well costs over time. He said early wells in 2016 and 2017 took about 30 days to drill and complete a roughly 1-mile lateral, while by 2024 the company had reduced drilling time to 12 days. He said 2023 wells budgeted at $7.2 million ultimately cost about $5.5 million each, and that 1.5-mile Lovina laterals drilled last year averaged 10.5 days. For the Clifton Mac wells the company planned to start drilling, he cited a budgeted cost of about $7.2 million, noting the move to longer laterals provides access to more reservoir at similar cost levels.
Regener also outlined inventory and acreage details, stating Netherland, Sewell credited Kolibri with 104 additional Caney locations, including 48 proved, 24 probable and 17 possible. He said the company has about 17,700 acres and 45 wells on production, with 99% of acreage held by production—allowing Kolibri to drill “where we want to when we want to.”
On additional upside beyond the Caney, Regener discussed two intervals: the Sycamore Formation and the T Zone. He said other operators north of Kolibri have drilled successful Sycamore wells, and Kolibri is refining where it should test its first Sycamore well. He emphasized those opportunities are not included in the reserve report. On the T Zone, he said the company has produced and tested wells but is delaying development due to interference observed when completing T Zone and Caney wells simultaneously; he said the company may pursue T Zone wells later as Caney wells decline.
In Q&A, Regener said Kolibri believes it can maintain low leverage alongside growth “for a long time,” citing the three-well plan and the depth of its inventory. He also said the company accelerated its drilling schedule from June to April after oil prices improved, describing the ability to “change gears” quickly as an advantage of its size.
About Kolibri Global Energy (NASDAQ:KGEI)
Kolibri Global Energy Inc engages in the finding and exploiting oil, gas, and clean and sustainable energy in the United States. It sells crude oil, natural gas, and natural gas liquids. The company was formerly known as BNK Petroleum Inc and changed its name to Kolibri Global Energy Inc in November 2020. Kolibri Global Energy Inc was incorporated in 2008 and is headquartered in Thousand Oaks, California.
-ltd-logo-1200x675.jpg){kind=logo}
-logo-1200x675.png){kind=logo}
