Kolibri Global Energy (NASDAQ:KGEI) highlighted its low-cost Oklahoma shale operations, reserve value metrics, and flexible capital allocation approach during a fireside chat moderated by Lytham Partners Managing Partner Robert Bloom with Chief Executive Officer Wolf Regner.
Operational footprint and reserve valuation
Regner described Kolibri as a North American oil and gas company whose “main asset” is a shale oil field in Oklahoma, located roughly midway between Oklahoma City and Dallas. He said the company has emphasized governance and third-party verification, noting reservoir engineering firm Netherland, Sewell & Associates and auditor BDO.
Regner added that the proved-reserve valuation used an oil price deck that started at $58 in 2026 and increased to $69 by 2029, and he said higher commodity prices would imply higher reserve valuations than those estimates.
Low-cost development and repeatability
On operating efficiency, Regner said Kolibri’s average cost to produce a barrel of oil equivalent last year was about $7.33. He attributed the company’s low operating cost profile to a combination of operational learning, infrastructure advantages, and field characteristics.
Regner said Kolibri uses its own natural gas to run compressors that help lift oil, rather than buying electricity, and noted the field does not produce large volumes of water beyond returning some fracture stimulation fluid. As a result, he said the company has not had to build extensive water disposal infrastructure. He also described well designs as horizontal, drilled to roughly 8,000 to 12,000 feet with laterals increasingly extending to 1.5 to 2 miles.
Asked what has driven performance improvements, Regner said the company has refined drilling and completion practices over time, including well placement in specific sub-intervals and adjustments to fracture stimulation designs. He said the company generally changes “one thing at a time” to isolate what drives results, while continuing to test new technologies.
Inventory, development pace, and sustaining production
Regner said Kolibri has drilled 45 wells across the field, which he characterized as helping delineate the asset and inform reserve calculations. He said the latest reserve report identified 48 proved locations, 24 probable locations, and 17 possible locations.
Bloom and Regner discussed the mix of proved developed producing versus undeveloped reserves. Regner said only about 29% of the company’s proved reserves are in the proved developed producing category, with the remainder proved undeveloped, alongside additional probable reserves. He said development pace depends on several factors, including oil prices, and outlined how the company might adjust drilling activity accordingly.
At lower prices in the high $50s to low $60s, Regner said his inclination was to recommend drilling about three wells in the year, which he said could keep production roughly flat while maintaining cash flow and supporting capital returns. If oil prices remain higher, he said the company could increase drilling activity to boost production and cash flow.
On maintaining production trends, Regner said Kolibri has visibility into longer-term decline behavior and believes roughly three wells per year could keep production about flat and “probably grow it a little bit,” depending on performance.
Planning amid volatility and hedging approach
Regner said rapid oil price moves make planning difficult, and described preparatory work such as building multi-well pads and completing surface location work as key long-lead steps. He said Kolibri has been proactive in preparing multiple locations so it can “quickly increase activity” if it chooses to, and noted access to equipment and rigs given the company’s location between Oklahoma City and Dallas.
On macro conditions, Regner discussed shifting market narratives from concerns about a glut prior to “the war” to supply disruption concerns. He referenced headlines around the Strait being blocked and suggested normalization could take longer than anticipated. Regner said he expects oil prices to be higher than many anticipate for the year and expressed a view that prices could settle closer to the low $70s rather than the low $60s, which he said would be a “fantastic environment” for Kolibri to drill.
Regarding natural gas, Regner said Kolibri is liquids-weighted and does not “fixate too much” on gas pricing. He cited an example month (November) in which production was 75% oil, about 16% natural gas liquids, and natural gas generally around 10% to 15%.
On risk management, Regner said Kolibri maintains hedges partly due to requirements tied to its bank facility. He disclosed a $65 million line of credit with Bank of Oklahoma and said the company targets a debt-to-EBITDA ratio “down around 1,” adding it was “just over 1 right now” but being paid down during the first and part of the second quarter to move back below 1. Regner said about 50% of estimated proved developed producing volumes are currently hedged. He described using costless collars—some with caps around $75 to $77 for the year—and said the company recently added collars with a wider band, roughly $70 to $90. He also said Kolibri added some swaps when prices were higher, including levels in the $95 and high $80s for early months.
Sycamore upside and 12-month milestones
Bloom asked about potential upside beyond the core area, including “Sycamore testing plans” and “East Side appraisal.” Regner said the company drilled an East Side well but it did not receive credit in the reserve report because higher prices than the report’s assumptions would be needed for economic development there. He said nearer-term upside could come from the Sycamore zone, noting activity by other operators to the north and northwest and “good oil and gas shows” in older wells on Kolibri’s acreage. Regner said a future Sycamore test well would serve as a “drilling truth teller.”
Looking ahead, Regner said capital allocation decisions will weigh drilling, debt reduction, and returning capital to shareholders, with buybacks as the current form of capital return. He said the company expects to resume drilling by June and intends to provide an update via press release once plans are finalized. He added that the ultimate pace of drilling would depend on where oil prices settle and whether the company prioritizes additional wells or increased capital returns.
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.
