Kolibri Global Energy provides an operations update on its latest wells in its Tishomingo field in Oklahoma.

FIELD UPDATE

The field, with the addition of the new Barnes and Velin wells, is currently producing over 6,000 Barrels of oil equivalent per day (“BOEPD”). This current production rate includes the offsetting wells that were shut in for the fracture stimulations, some of which are dewatering, while others are producing at higher rates than before being shut in.

BARNES, LOVINA AND VELIN WELLS

The Barnes 6-31-2H, Barnes 6-4H (formerly called Barnes 6-31-3H), Velin 12-9H, and Velin 12-10H were all successfully fracture stimulated with all planned proppant amounts placed and have started flowing back the fracture stimulation fluid.

The two Barnes wells (100% working interest) are each averaging approximately 465 Barrels of oil equivalent per day (“BOEPD”) (395 barrels of oil per day (“BOPD”)). The Barnes wells are producing high percentages of oil (85%), much like the Lovina wells the Company drilled earlier this year. Given that one Barnes well is a 1.5-mile lateral and the other a 1-mile lateral, the production rates from these wells, on a comparable lateral length basis, are slightly higher than the Lovina wells were producing during early flowback. The Company doesn’t believe that the entire 1.5 mile lateral of the Barnes 6-31-2H is contributing to the production yet. Early in 2026, production tubing strings will be run in the Barnes wells, which, along with additional frack fluid recovery, are expected to improve production rates further, as has been the case in other Caney wells.

The Lovina wells, located on the southern part of the Company’s acreage, between the Emery and Glenn wells, have been performing well. They have, as predicted, had lower decline rates than the Company’s previously drilled wells. The Company’s internal analysis indicates that these wells have strong economics, even at lower oil prices. The Company’s internal analysis, with four months of actual production data, shows that at a constant oil price of $60 a barrel, the four well Lovina pad would generate a 33% Internal Rate of Return (“IRR”), and at a constant $70 oil price, a 48% IRR. The analysis forecasts that the average ultimate oil recovery from the Lovina wells will approximately match the forecast for these locations assigned by the Company’s independent qualified reserves evaluator (“IQRE”) in its report dated effective December 31, 2024. Readers are referred to the “Caution Regarding Internal Estimate” section of this news release, which provides an explanation of the composition of IRR and a comparison of the results of the internal analysis to the results of the IQRE report.

The two 1-mile lateral Velin wells (97% working interest), drilled approximately two years ago, were fracture stimulated immediately prior to the Barnes wells, and started flowing back after the Barnes wells’ fracture stimulations were completed. They are experiencing lower than anticipated early production rates, averaging approximately 200 BOEPD (145 BOPD). Due to the close proximity of all four wellbores, it was necessary to shut in the Velin wells longer than our normal time after the fracture stimulations were complete while the Barnes wells were being completed. While that is standard industry practice, it may be a contributing factor to the lower early production rates. Also, even though the Velin wells are structurally deeper, lower initial flowing pressures are being observed. To assist the fracture fluid flowback, tubing is currently being run in the Velin wells. The Company is expecting these wells to have improved flow rates once more fracture stimulation fluid is recovered. Though the formation analysis of these wells is comparable to those of the offset wells, there is the presence of increased natural healed fractures and small-scale faulting, which appears unique to this location, potentially due to being adjacent to a large structural uplift.

Wolf Regener, President and CEO, commented, 
“Overall, I’m very pleased with how well the field continues to perform, with current production over 6,000 BOEPD. It is great to see the high oil percentage of our recent wells, which is helping to improve the Company’s netbacks.

“The early production profile of the Lovina wells was different than many of our previous wells, and we are glad to see them achieving the lower decline rates, predicted by our team, resulting in the strong forecasted IRRs. The early production data from the Barnes wells is very similar, including the high oil percentages, so we are hopeful that those wells will have similar results.”

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