Kolibri Global Energy Inc. (“KEI”) (KGEIF) is pleased to announce that the Barnes 7-3H well (98.07% working interest) has averaged over 940 Barrels of oil equivalent per day (BOEPD), of which over 740 barrels are oil, for 30 days. The Company also announces that the Barnes 8-4H well (99.8% working interest) has been successfully completed and is now flowing back the stimulation fluids. Both wells are located in the Company’s Tishomingo field in Oklahoma.
Wolf Regener, President and CEO, commented. “I am thrilled that the Barnes 7-3H well continues to perform exceptionally well. This is the highest producing Caney well that we have ever had due to the knowledge we have gained in this field and a great job of execution by our team. To put the performance of this well in perspective, the 30-day proved forecast curve case initial production rate (IP30) utilized by our third-party engineering firm for our reserve report is 388 BOEPD or 41% of what the Barnes 7-3H IP30 rate is. The initial 30-day type curve utilized by the Company’s management assumes a 472 BOEPD IP30 rate, which is half of the Barnes 7-3H IP30 rate. The Glenn 16-2H well, which was previously our best performing Caney well, had a 630 BOEPD IP30 rate, and it is projected to produce 765,000 barrels of oil equivalents (BOEs) based on our third-party engineering firm estimates”.
“The Barnes 8-4H well completion went very well thanks to the performance of our team with 10.3 million pounds of proppant being placed using the same stimulation design as was used on the Barnes 7-3H. The well is now flowing back the stimulation fluids, and we will share production rates with the market over the coming weeks. While the Barnes 8-4H well completion design and execution has been similar to the Barnes 7-3H well, we do not need rates as high as the Barnes 7-3H to make excellent wells. For example, if the Barnes 8-4H well performance matches the type curve utilized by the Company’s management, the well would be projected to generate a 145% Internal Rate of Return at a $100 a barrel oil price.”
We look forward to bringing on the additional new unhedged production at the current $100 a barrel oil price, which would add significant additional cash flow assuming the type curve utilized by the Company’s management is achieved.”