Kolibri Global Energy Q2 2026 Earnings Report

Kolibri Global Energy EPS Results

• Actual EPS: $0.23
• Consensus EPS: $0.21
• Beat/Miss: Beat by +$0.02
• One Year Ago EPS: N/A

Kolibri Global Energy Revenue Results

• Actual Revenue: $22.54 million
• Expected Revenue: $20.86 million
• Beat/Miss: Beat by +$1.68 million
• YoY Revenue Growth: N/A

Kolibri Global Energy Announcement Details

• Quarter: Q2 2026
• Date: 8/13/2026
• Time: Before Market Opens
• Conference Call Date: Thursday, August 13, 2026
• Conference Call Time: 12:00PM ET

Kolibri Global Energy (NASDAQ:KGEI) 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.

Kolibri Global Energy Q2 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Record second-quarter results: Revenue reached $22.5 million, production rose 46% to 4,690 BOE per day, and adjusted EBITDA increased 114% year over year to $16.4 million, despite three wells being shut in for part of the quarter.
• Positive Sentiment: The company completed drilling its three Clifton Mack wells and expects four 2026 wells to support further growth, primarily in the fourth quarter. Management said the shut-in Alicia Renee wells are expected to return without material performance issues and could generate some initial “flush” production.
• Positive Sentiment: Kolibri’s borrowing base increased 15% to $75 million from $65 million, providing additional working-capital flexibility and reflecting the company’s view that the value of its properties is increasing.
• Neutral Sentiment: Management is testing the False Caney formation with a first-ever two-mile horizontal well at Lovina 8-5-1 HF. The company sees substantial potential if the oil-saturated interval delivers repeatable flow rates and decline characteristics, but acknowledged that results remain uncertain until completion and production data are available.
• Negative Sentiment: Operating costs rose to $8.90 per BOE from $7.15, driven by workover costs, elevated water hauling and some chemical-cost inflation. Management expects workover costs to subside and water hauling to moderate, but said expenses may remain somewhat above last year’s levels.

Presentation

[Operator]

Good day, and welcome to the Kolibri Global Energy's Second Quarter 2026 financials conference call. All participants will be in a listen-only mode. Media may monitor this call in a listen-only mode. They are free to quote any member of the management, but are asked to not quote remarks from any other participant without the participant's permission. If anyone has any trouble and needs assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touch tone phone, and to withdraw your question, please press star then two. Please note this event is being recorded. I advise participants that this conference call is being recorded today, August 13, 2026. This call will be available on the company's website at www.kolibrienergy.com. Here is a disclaimer.

[Operator]

This call may include forward-looking statements. Forward-looking information regarding Kolibri's strategic plans, anticipated production, capital expenditures, exit rates, cash flows, reserves, and other estimates and forecasts. Forward-looking information is subject to risks and uncertainties, and actual results will vary from the forward-looking statements. This call may include future-oriented financial information and financial outlook information, which Kolibri discloses in order to provide readers with a more complete perspective on Kolibri's potential future operations, and such information may not be appropriate for other purposes. For a description of the assumptions on which such forward-looking information is based and the applicable risk and uncertainties, and Kolibri's policy for updating such statements, we direct you to Kolibri's most recent annual information form and MD&A for the period under discussion, as well as Kolibri's most recent corporate presentation, all of which are available on Kolibri's website.

[Operator]

Listeners should not place undue reliance on forward-looking information. Kolibri undertakes no obligation to update any forward-looking, future-oriented financial or financial outlook information other than the required by applicable law. I would now like to turn the call over to Mr. Wolf Regener, the President and CEO of Kolibri Energy Inc. Please go ahead, sir.

[Wolf Regener, President and CEO at Kolibri Global Energy]

Thank you, and thank you everyone for joining us today. With me on today's call is also Gary Johnson, our Chief Financial Officer. As hopefully everyone has seen, we released our second quarter 2026 results this morning. If you looked at them, I hope you share our excitement about the results. To say we are very pleased is an understatement. Our second quarter resulted in the company having its highest quarterly revenue, production, and Adjusted EBITDA in the history of the company. This is in spite of having three of our wells shut in for one-third of the quarter. We also finished drilling the three Clifton Mack wells and are looking forward to beginning the completion operations on those shortly.

[Wolf Regener, President and CEO at Kolibri Global Energy]

I'm also very excited that we're starting to drill the Lovina [8-5-1H] well, which is our first test of the False Caney formation. I'm looking forward to testing this bench in our field. I'm excited about this because of all the data we have. We have a whole core that showed that the False Caney is highly oil saturated, and it has excellent characteristics on logs from numerous wells in the field. I'm looking forward to exciting times ahead from our company. With that, I'll now turn over the call to Gary to discuss our financial results. Go ahead, Gary.

[Gary Johnson, CFO at Kolibri Global Energy]

Thanks, Wolf, and thanks to everyone for joining the call. I'm just going to go over a few highlights of the second quarter and the year-to-date results. Then we can take questions at the end of the call. All amounts are in USD unless otherwise stated. I'll start by going over the second quarter. As you may have seen in our press release, our second quarter revenue was $22.5 million, which was our highest quarterly revenue in the company's history. Revenue increased by 109% from the prior year second quarter due to a 46% production increase and a 41% increase in average prices. Average production was up 46% to 4,690 BOE per day, compared to 3,220 BOE per day in the prior year quarter.

[Gary Johnson, CFO at Kolibri Global Energy]

That increase was due to the production from the wells that were drilled and completed during the second half of 2025. Net income was $8.5 million, and basic EPS was $0.24 per share, compared to $2.9 million and basic EPS of $0.08 per share in the prior second quarter, which was an increase of almost 200%. The increase was due to higher revenue and an unrealized gain on commodity contracts, partially offset by higher operating expense and depletion expense due to the higher production. Adjusted EBITDA was $16.4 million compared to $7.7 million in the prior quarter, which was an increase of 114% due to higher revenues, partially offset by higher OpEx and a realized loss on commodity contracts.

[Gary Johnson, CFO at Kolibri Global Energy]

Our netback from operations increased to $43.92 per BOE compared to $29.66 per BOE in the prior quarter, which was an increase of 48%. This was due to higher average prices for the quarter, which were partially offset by higher operating expenses. Production and operating expense averaged $8.90 per BOE for the quarter compared to $7.15 per BOE in the prior quarter, which was an increase of 24%. This increase was due to workover costs for a non-operated well, which added $0.59 per BOE, and also temporary higher water hauling costs compared to 2025. Moving on to the year-to-date June results. Net revenue increased by 55% to $42.1 million, compared to $27.2 million, due to a 29% increase in production and a 19% increase in average prices.

[Gary Johnson, CFO at Kolibri Global Energy]

Average production for year-to-date June was up 29% to 4,688 BOE per day, compared to 3,646 in the prior year period. This increase was again due to production from the wells that were drilled in the last half of 2025. Net income was $12.5 million, and basic EPS was $0.35 per share, compared to $8.6 million and basic EPS at $0.24 per share in the prior year period. The increase was due to higher revenue, partially offset by higher operating expense and depletion expense due to the higher production, higher interest expense, and a realized loss on our commodity contracts in 2026. Adjusted EBITDA was $31.3 million, compared to $20.5 million in the prior year period, an increase of 52% due to higher revenue, partially offset by higher operating expenses and a realized loss on commodity contracts.

[Gary Johnson, CFO at Kolibri Global Energy]

Netback from operations increased by 21% to $41.18 per BOE, compared to $34.05 per BOE in the prior year period. This was due to higher average prices, partially offset by higher operating expenses. I also wanted to add that our credit facility was redetermined in the second quarter, and our borrowing base was increased by 15%, from $65 million to $75 million. The continued increase in our borrowing base gives us more flexibility in managing our working capital going forward, and it also demonstrates the growing value of our property. As you can see, last year's drilling program led to significant increases in revenue and cash flow across both the second quarter and the first half of the year.

[Gary Johnson, CFO at Kolibri Global Energy]

We anticipate the four new wells in our 2026 drilling program will add on to this growth, primarily in the fourth quarter, when the wells are expected to be contributing a full quarter of production. With that, I'll hand it back to Wolf.

[Wolf Regener, President and CEO at Kolibri Global Energy]

Thanks, Gary. As Gary laid out, we had a great quarter, with us hitting our highest ever quarterly revenue, production, and Adjusted EBITDA. We're looking forward to more growth with the four new wells coming online. In addition, as I said in the beginning of the call, we're also really looking to this False Caney test. Having a successful False Caney well can open up the door to many more locations, reserves, and thus value creation for all shareholders. That is what I believe we are all here to do. This concludes the formal part of our presentation, and we'd be happy to answer any questions you may have.

[Operator]

We will now begin the question and answer session. To ask a question, you may press star then one on your touch tone phone. If you are using a speaker phone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. We will pause momentarily to assemble our roster. The first question will come from Steve Ferazani with Sidoti. Please go ahead.

[Steve Ferazani, Analyst at Sidoti]

Morning, Wolf. Morning, Gary. Obviously great quarter. Wolf, the surprise to us was the strength in the 2Q production and the fact that they are really, even if we factor in the volume adjustment by the gas purchaser, it is largely offset by the shut in of the Alicia Renee wells. We exclude that, and there is virtually no sequential decline in production, even though you added no new volume in the first half. I am just trying to figure out how that happens.

[Wolf Regener, President and CEO at Kolibri Global Energy]

Wells did well. Yeah, no, the wells are performing well and, you know, when we bring these wells on, they flow for a while, then we put them on a lift. We got a little boost again when we put them on lift, you know, had a little decline and then came back up again on that. Now they will start their normal decline after that as well. So, you know, we are not going to stay flatlined unfortunately, until we bring new wells on.

[Steve Ferazani, Analyst at Sidoti]

Unfortunately.

[Wolf Regener, President and CEO at Kolibri Global Energy]

Which will go back up again. So, yeah.

[Steve Ferazani, Analyst at Sidoti]

When I, when I think about

[Wolf Regener, President and CEO at Kolibri Global Energy]

We're happy with what's going on.

[Steve Ferazani, Analyst at Sidoti]

When I think about that, were those, the 4Q wells, the, was it the Barnes and the Velin?

[Wolf Regener, President and CEO at Kolibri Global Energy]

Right.

[Steve Ferazani, Analyst at Sidoti]

Were you still optimizing those wells within Q1? Is that part of the factor here?

[Wolf Regener, President and CEO at Kolibri Global Energy]

Yeah. Well, it's more along the lines of what I mentioned as far as bringing the gas compression in to the gas lift. That helps it out again, right? You have some declines.

[Steve Ferazani, Analyst at Sidoti]

Yep.

[Wolf Regener, President and CEO at Kolibri Global Energy]

Before it's happening, and then you can reverse some of that when you bring that on.

[Steve Ferazani, Analyst at Sidoti]

Got it.

[Wolf Regener, President and CEO at Kolibri Global Energy]

Yeah.

[Steve Ferazani, Analyst at Sidoti]

Gary, the gas purchaser volume adjustment, what quarter was that from? I'm just trying to figure out how it factored into your gas and NGL realized price.

[Gary Johnson, CFO at Kolibri Global Energy]

It's related to several periods in the past, going back to 2024, actually.

[Steve Ferazani, Analyst at Sidoti]

Okay.

[Gary Johnson, CFO at Kolibri Global Energy]

It's.

[Steve Ferazani, Analyst at Sidoti]

Oh, wow. Okay.

[Gary Johnson, CFO at Kolibri Global Energy]

It's, but it just started wells. But, yeah, it goes back quite a few months. Quite a few years, actually.

[Steve Ferazani, Analyst at Sidoti]

Got it. Got it. You provided the updated guidance late June. Were there any new factors that weren't included in that guide, Wolf? We know we had the volume adjustment. I'm assuming late June you knew that. You knew the shut in of the Alicia Renee wells. I'm sure you had a reasonable sense of the timing

[Wolf Regener, President and CEO at Kolibri Global Energy]

Right.

[Steve Ferazani, Analyst at Sidoti]

Of the three wells you're completing now. Any factors we should be thinking about that were not in that guide?

[Wolf Regener, President and CEO at Kolibri Global Energy]

No, it'll just depend on how these wells do as they're coming on.

[Steve Ferazani, Analyst at Sidoti]

Yeah.

[Wolf Regener, President and CEO at Kolibri Global Energy]

You know, the four wells. That's, that's really the biggest factor on

[Steve Ferazani, Analyst at Sidoti]

But that's really what puts you from

[Wolf Regener, President and CEO at Kolibri Global Energy]

Our, how our guide looks at. Yeah. Because it's a lot of production coming on at once, right? I mean, our production's been growing nicely, right? We're at close to 5,000.

[Steve Ferazani, Analyst at Sidoti]

Yeah, absolutely.

[Wolf Regener, President and CEO at Kolibri Global Energy]

But still bringing on four wells at a time that have high IPs really moves the needle a lot one way or another for a forecast. So that's our biggest variable, I'll say.

[Steve Ferazani, Analyst at Sidoti]

That's what would put you to the higher end. Because right now you'd be to hit the low end of guidance, second half would be flat to first half. It's reasonable to start thinking probably the low end is less low risk.

[Wolf Regener, President and CEO at Kolibri Global Energy]

I don't want to overpromise anything, so I'm-

[Steve Ferazani, Analyst at Sidoti]

Yeah, no, I understand that.

[Wolf Regener, President and CEO at Kolibri Global Energy]

Our guidance is what we have.

[Steve Ferazani, Analyst at Sidoti]

I'm trying to get you to anyway.

[Wolf Regener, President and CEO at Kolibri Global Energy]

Sorry, I'm not going to fall for it.

[Steve Ferazani, Analyst at Sidoti]

Fair enough.

[Wolf Regener, President and CEO at Kolibri Global Energy]

No offense.

[Steve Ferazani, Analyst at Sidoti]

But bigger picture, based on the guide, 3Q is going to be your low production quarter. 4Q is expected to be the high production quarter for the year.

[Wolf Regener, President and CEO at Kolibri Global Energy]

Correct. You are absolutely right.

[Steve Ferazani, Analyst at Sidoti]

Okay. The Lovina well, in general. It is a 2 mi well, you haven't done 2 mi lateral. You haven't done that before. How much of that is because it is in the False Caney? Or how much of it is the geographical location in the field what's allowing you to try the 2 mi lateral for the first time?

[Wolf Regener, President and CEO at Kolibri Global Energy]

Even on these mile-and-a-half laterals, some of them are a little bit longer because we're sometimes coming into a section back a bit. So some of these mile and a half were actually a little bit longer. But really, it's a quiet area. We've been able to steer still at the end of our laterals, and that was the hardest part for us in the beginning when we just had 1-mile laterals, because we do have quite a bit of dip here. We've made this-

[Steve Ferazani, Analyst at Sidoti]

Okay.

[Wolf Regener, President and CEO at Kolibri Global Energy]

So that we don't have quite as much dip here. It's in a quiet area of the field where we don't see a whole lot of faulting. We have good control around it. So we feel comfortable that we can push it to the 2 mi out here on this well.

[Steve Ferazani, Analyst at Sidoti]

Got it. Well, it's an exciting time. What are the factors in deciding whether you'll complete it or not? Or we don't know?

[Wolf Regener, President and CEO at Kolibri Global Energy]

Oh, I would imagine, unless we have a horrible drilling issue, we'll be completing that well.

[Steve Ferazani, Analyst at Sidoti]

Which would then and the plan would be the.

[Wolf Regener, President and CEO at Kolibri Global Energy]

I can't imagine any scenario where we wouldn't.

[Steve Ferazani, Analyst at Sidoti]

Would you be using the timing wise, would you be using the same spread?

[Wolf Regener, President and CEO at Kolibri Global Energy]

I don't know if it's going to be the same or not.

[Steve Ferazani, Analyst at Sidoti]

Okay.

[Wolf Regener, President and CEO at Kolibri Global Energy]

It will just be as a matter of timing, who's available.

[Steve Ferazani, Analyst at Sidoti]

Yep.

[Wolf Regener, President and CEO at Kolibri Global Energy]

For the right price, too, right?

[Steve Ferazani, Analyst at Sidoti]

Yep.

[Wolf Regener, President and CEO at Kolibri Global Energy]

So it is timing for us as well.

[Steve Ferazani, Analyst at Sidoti]

Of course.

[Wolf Regener, President and CEO at Kolibri Global Energy]

So as soon as we are done drilling, we would like to get the completion crew in as quickly as possible, much like we are doing on the Clifton Mack wells here.

[Steve Ferazani, Analyst at Sidoti]

Got it. Last one for me, just on the update on your production and operating costs. The water hauling, do you expect that to continue through this year? The workover is isolated to this quarter. Fair?

[Wolf Regener, President and CEO at Kolibri Global Energy]

Yeah. The workover is definitely isolated to this quarter.

[Gary Johnson, CFO at Kolibri Global Energy]

Well, it was actually the first half because it was in the first quarter as well, the workover

[Wolf Regener, President and CEO at Kolibri Global Energy]

Correct.

[Steve Ferazani, Analyst at Sidoti]

Yep.

[Gary Johnson, CFO at Kolibri Global Energy]

From our non-op was both quarters. But yeah, it should stop now. But the water hauling.

[Wolf Regener, President and CEO at Kolibri Global Energy]

It was shocking.

[Gary Johnson, CFO at Kolibri Global Energy]

I think it should-

[Wolf Regener, President and CEO at Kolibri Global Energy]

It was shocking how much was spent on one well.

[Gary Johnson, CFO at Kolibri Global Energy]

Yes, we were shocked.

[Steve Ferazani, Analyst at Sidoti]

The water hauling, Gary, does that temper here, or is it around this level for the year?

[Gary Johnson, CFO at Kolibri Global Energy]

It's definitely gone down throughout the quarter. I mean, throughout the year so far, but it's probably going to be higher than last year a little bit, but not too much.

[Steve Ferazani, Analyst at Sidoti]

Yeah.

[Gary Johnson, CFO at Kolibri Global Energy]

But it's definitely going to temper down.

[Steve Ferazani, Analyst at Sidoti]

Got it. Then just generally on cost pressures, are you seeing them around your field?

[Wolf Regener, President and CEO at Kolibri Global Energy]

We've had some increases. Some of our chemical costs have come up and up, so we're putting actually some physical things in to try to knock those chemical costs down again.

[Steve Ferazani, Analyst at Sidoti]

Okay.

[Wolf Regener, President and CEO at Kolibri Global Energy]

We're in early stages of that. We think we're making some progress on that. But, yeah. There's been some cost escalation, but nothing too bad.

[Steve Ferazani, Analyst at Sidoti]

Got it. All right. Thanks, Wolf. Thanks, Gary.

[Wolf Regener, President and CEO at Kolibri Global Energy]

Absolutely. Thanks, Steve.

[Operator]

The next question will come from Nicholas Pope with ROTH Capital. Please go ahead.

[Nicholas Pope, Analyst at ROTH Capital]

Hey, Gary. Hey, Wolf. How are you doing?

[Wolf Regener, President and CEO at Kolibri Global Energy]

Hey, Nick. How's it going?

[Gary Johnson, CFO at Kolibri Global Energy]

I'm good. How are you?

[Nicholas Pope, Analyst at ROTH Capital]

Good. Got a couple quick questions here on the operations front. Curious, with that Lovina well, first test here in the False Caney, you said you had that whole core looked oil saturated. Curious what's remaining from a risk standpoint as you look at that well, and how y'all are expecting to communicate with the street the results of that well? Or maybe what you view as successful relative to what we're seeing in the core Caney wells that you're already drilling, maybe comparing it with that.

[Wolf Regener, President and CEO at Kolibri Global Energy]

Yeah. On a prospective basis, the zone's a little thinner. You can see that on our presentation too, with how it's more cartoonish, but it is relative to one another. It's a little thinner than the Caney itself. But if you look at how much acreage we have in our proved reserves for our Caney itself, it's like 11,500 acres net to us. The Caney, we think, has perspective over about 9,900 acres. It's not as thick, and we have a lot of reserves in the Caney. We have 40 million barrels proved in the Caney itself. Even if the False Caney is thinner, even if you want to cut it in half, we're looking at something comparable that we're hoping to be able to get a lot of reserves if we can make this work, and it's repeatable.

[Wolf Regener, President and CEO at Kolibri Global Energy]

Really what we're looking for is having a good well that's steered in this interval. We'll get the cuttings and get the analysis as we're drilling it as well, so we have a feel for what the rock looks like. Not anticipating any big surprises on that front. Then it'll come down to just what the flow rates are from it, and then what ultimately are the decline rates. But, we've liked that core for a long time. Because it's a little thinner, we think the two-mile laterals really make the economics work really well. Our steering has gotten better and better with the newer tools over the last five, six years even. We have high hopes that we're going to keep it where we want it, that our geology's going to be good, and it should be with the control we have.

[Wolf Regener, President and CEO at Kolibri Global Energy]

We'll make a good well. Then, then it'll be what the flow rates are and what the 30-day rate is and how she declines thereafter. It's hopefully going to be pretty I'm hoping it's very definitive right off the bat.

[Nicholas Pope, Analyst at ROTH Capital]

How are you expecting these wells, their initial rates to compare to the Caney itself? Or is it too early?

[Wolf Regener, President and CEO at Kolibri Global Energy]

It is really too early. I am hoping we are making at least what the Caney wells are. They might have higher IPs, maybe. The perms look a little better, but we will see. Let us let the production speak for itself when we do it. I do not want to lead anyone too much one way or another on this.

[Nicholas Pope, Analyst at ROTH Capital]

Got it. Appreciate that. Looking at these Alicia Renee wells that are shut in.

[Wolf Regener, President and CEO at Kolibri Global Energy]

Mm-hmm. Right.

[Nicholas Pope, Analyst at ROTH Capital]

Curious if there's any concern about performance once those come back online when the Clifton Mack wells are done.

[Wolf Regener, President and CEO at Kolibri Global Energy]

No.

[Nicholas Pope, Analyst at ROTH Capital]

Or it's pretty straightforward that-

[Wolf Regener, President and CEO at Kolibri Global Energy]

No, not at all. Yes, so it's just the way we had to redesign the programs, we had to drill them closer in to where those were, just to get around some of the faults that we found when we drilled that first one. That's the reason that they're shut in. We're drilling really close to where those other well bores were, but it's the very toe end of those well bores that are hitting the heel of the Clifton Mack wells. So, even if we frack into it a little bit, it's just at the very heel of it and shouldn't affect the Alicia Renee much. Our wells in general, we actually get a bunch of flush production after these wells have been shut in for a while because they don't produce a whole lot of water.

[Wolf Regener, President and CEO at Kolibri Global Energy]

It's just the water that we've injected, and it slowly comes back over time. So I'm anticipating some flush production out of the Alicia Renee when they come back on.

[Nicholas Pope, Analyst at ROTH Capital]

Got it. All right. Well, that is all I had. I appreciate the time, Wolf.

[Wolf Regener, President and CEO at Kolibri Global Energy]

No, absolutely. Good to hear from you, Nick.

[Operator]

Again, if you have a question, please press star then one. Our next question will come from Richard Dearnley with Longport Partners. Please go ahead.

[Richard Dearnley, Analyst at Longport Partners]

Good morning. The Clifton Mack wells with the casing problem had, was because one of the things was too much pressure. How much more pressure did they have than what you were expecting, or versus the standard average Caney well?

[Wolf Regener, President and CEO at Kolibri Global Energy]

Yeah, let me say it's not so much a casing issue, it's just that we had to use extra casing strings in these wells. We had a lower pressure interval that was up shallower that we've not had in other areas of the field, just in this area. We had to put an extra casing string across that to isolate that. Then there was some higher pressures down at the bottom. Before we drilled the lateral, we set another string right there before we drilled the lateral in order to hold everything back and keep everything isolated. It's always been a tougher interval for us, right at that transition from the Springer into the Caney formation. Really that's the extra security that was there for these wells that we felt that we had to do in order to go forward.

[Wolf Regener, President and CEO at Kolibri Global Energy]

Yeah, it showed us higher pressures. I don't have a quantifiable number on that, and we'll just see what she does when we come back. Really the only pressure we can really get is once we actually fracture stimulate and-

[Richard Dearnley, Analyst at Longport Partners]

Right.

[Wolf Regener, President and CEO at Kolibri Global Energy]

Start getting fluid back out of the rock. For that, we used higher mud weights here to drill it, to keep everything in place. That's the reason for the higher pressures that we mentioned.

[Richard Dearnley, Analyst at Longport Partners]

Right. What did they end up costing?

[Wolf Regener, President and CEO at Kolibri Global Energy]

Well, we haven't specified it specifically, but they were more expensive than our normal wells.

[Richard Dearnley, Analyst at Longport Partners]

Is that classified info?

[Wolf Regener, President and CEO at Kolibri Global Energy]

No, it's just we haven't discussed it. I can't. Whatever we didn't specifically put in a press release, I can't say on the call either, because otherwise we have to do another press release to disseminate that information. Not trying to be difficult, but have to be careful about what we disseminate to everyone per the rules.

[Richard Dearnley, Analyst at Longport Partners]

Right. Well, it would be useful to know that when you release the IP or EUR estimates, just for background.

[Wolf Regener, President and CEO at Kolibri Global Energy]

Completely understandable. But the good part is that no matter what these wells cost, we are still guiding toward our normal Caney wells still being that same cost because in the rest of the field, we do not have to do these extra casing strings.

[Richard Dearnley, Analyst at Longport Partners]

Right. Is the gas-oil ratio heading north this quarter? Is that a one-off or the base, the average, your base wells getting gassier?

[Wolf Regener, President and CEO at Kolibri Global Energy]

No. Part of it is this adjustment that came in that dropped it down a bit lower as well. You will see we have a note in our, I cannot remember if the press release or the MD&A that-

[Gary Johnson, CFO at Kolibri Global Energy]

In the MD&A.

[Wolf Regener, President and CEO at Kolibri Global Energy]

Shows.

[Gary Johnson, CFO at Kolibri Global Energy]

Yeah. It was 70% in May and June, so it got skewed by that adjustment for the quarter. That's why it was really low. We are tracking, like I said, 70 in the last two months.

[Wolf Regener, President and CEO at Kolibri Global Energy]

Yeah. Basically the 74 that was in the first quarter was the new wells that came on, had a higher percentage oil percent. While the oil is tracking what the decline has been, we did start getting additional gas coming in. So they actually on a BOE basis, came up a little bit more than expected. Oil stayed what we expected, but more gas came in, so that dropped that down a bit.

[Richard Dearnley, Analyst at Longport Partners]

Right. Okay. You said that you expect the False Caney well to be oil saturated. Your base is very oil saturated already. Are you expecting higher oil saturation from the False Caney?

[Wolf Regener, President and CEO at Kolibri Global Energy]

No, we will not know what the percentage is until we drill it. All we are saying is that when you have whole core, our Caney was oil saturated as well. So, it is just an indication that there is oil in the False Caney, and then what the rates are and what the percentage oil to gas is, we will see when we fracture stimulate and when we produce them back.

[Richard Dearnley, Analyst at Longport Partners]

Yeah. Understand. Okay. Thank you.

[Wolf Regener, President and CEO at Kolibri Global Energy]

All right. Good to talk to you. Thanks.

[Operator]

This will conclude our question and answer session. I would like to turn the conference back over to Mr. Wolf Regener for any closing remarks. Please go ahead, sir.

[Wolf Regener, President and CEO at Kolibri Global Energy]

I just want to thank everyone for being supportive of the company and shareholders, also taking the time to listen to us today and ask questions, et cetera. Thank you, everyone. Have a great day.

[Operator]

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Participants

Executives

• Wolf Regener, President and CEO
• Gary Johnson, CFO

Analysts

• Steve Ferazani, Analyst at Sidoti
• Nicholas Pope, Analyst at ROTH Capital
• Richard Dearnley, Analyst at Longport Partners