Kolibri Global Energy, Inc. Q1 FY2025 earnings call

• Production increased 23% over first quarter of 2024.
• Operating expenses remain low at just over $7 a barrel of oil equivalent, leading to good netbacks.
• Drilled 5 wells in the quarter and cut drilling times down by a further 25% in 1.5-mile lateral wells, saving money and improving internal rates of return.
• Net income, production, and adjusted EBITDA showed strong increases.
• Operating expense decreased by 15% compared to the prior year first quarter.
• Intending to continue returning capital to shareholders via share buybacks.
• Have numerous conferences and presentations lined up to promote the company.

Net income was up 72% to $5.8 million with basic EPS of $0.16 per share compared to $3.3 million and $0.09 per share in the prior year quarter. Average production was up 23% to 4,077 BOE per day compared to 3,305 BOE per day in the prior year quarter. Adjusted EBITDA was $12.8 million compared to $10.4 million in the prior year quarter, an increase of 24%. Net revenue increased by 15% to $16.4 million compared to $14.3 million. Operating expense was $7.07 per BOE for the quarter compared to $8.36 per BOE in the prior year first quarter, a decrease of 15%. Netback from operations decreased slightly to $37.55 per BOE compared to $38.94 per BOE in the prior year quarter.

• Anticipates increasing production further when wells are completed later in the quarter.
• Second half drilling plans not specified in detail but locations are almost ready to go.
• Lovina wells expected to be in production in the third quarter, with the frac crew moving from one area to another to facilitate timely production.

Q: Can you give any sense on the financial savings from those faster wells drilled? And what you learned from drilling the 4 wells on the pad? Is that going to be transferable when you still have 2 more wells you're going to drill on a pad in the second half?

A: I don't like quoting what we have from our field estimates until we get our actual expenses in. It was a nice amount of savings. Transferable, yes, absolutely. Over the years, we've learned what works the best, and all those things together have led to savings, and we expect that to carry through to all future drillings.

Q: Any update on the timing on the second half drilling plans?

A: No, not right now. We'll just leave it at the second half. We've got locations that are almost ready to go and built, and we'll announce when we get a little closer.

Q: The plans for getting the Lovina wells to production, you're saying third quarter. Will that be simultaneous with the East side? Or will it be -- how can we think about that?

A: We'll finish fracture stimulating the Lovina wells and then drill out the plugs, and start flowback. The frac crew will move directly over to Lovina, so Lovina will come on first.