Kolibri reports strong early output from first False Caney well

Kolibri Global Energy said its first False Caney test well in Oklahoma is averaging 636 barrels of oil equivalent per day, including about 545 barrels of oil per day. The company also reported improved flowback and production from three Clifton Mack wells, which it says could lift future reserves and drilling locations.

Why it matters: - Kolibri’s early results from the False Caney zone could expand the company’s drilling inventory in the Tishomingo field. - The company says the new bench has no booked reserves yet, so any successful development could add future reserves and shareholder value. - Stronger output from the Clifton Mack wells could also increase proved reserves in the next reserve report.

What happened: - Kolibri Global Energy provided an operations update on its latest wells in the Tishomingo field in Oklahoma. - The Lovina 5-8-1HF well, Kolibri’s first False Caney well, has been averaging 636 barrels of oil equivalent per day, including about 545 barrels of oil per day. - The Lovina well has a 1.2-mile lateral. - The three Clifton Mack wells, with working interests ranging from 97.45% to 99.03%, have had tubing installed and are on controlled flowback and production. - The Clifton Mack wells are producing about 1,911 barrels of oil equivalent per day combined, including about 720 barrels of oil per day.

The details: - Kolibri said early results from the Lovina well are encouraging as the company works to prove up the False Caney formation. - The company said the False Caney currently has no locations booked in its reserves report. - Kolibri expects the False Caney could add many future drilling locations if results continue to hold. - The Clifton Mack wells are flowing back differently from previous Caney wells because of a new fracture stimulation design. - Kolibri said the wells have recovered more fracture stimulation fluid during flowback than previous Caney wells and are still maintaining higher frac fluid rates. - The Clifton Mack wells were drilled on acreage classified as probable reserves in the company’s reserve report. - Kolibri expects those wells to add additional proved reserves to the next reserve report.

Between the lines: - Management is signaling that the first False Caney test could become a material growth driver if performance stays strong. - The company is also testing whether a new completion design can improve recovery and production across its broader Caney development program. - CEO Wolf Regener said future False Caney wells are expected to be mainly 2-mile laterals, which could support higher production if productivity per foot matches the Lovina well. - Regener also said the company’s future development plans will focus on continuing Caney development and on benches that are not in the reserve report.

What's next: - Kolibri expects future False Caney wells to be mainly 2-mile laterals. - The company plans to keep refining the new fracture stimulation design based on lessons from the latest wells. - Kolibri is looking for additional production and cash flow from the current wells. - The company’s next reserve report could reflect added proved reserves if the Clifton Mack wells continue to perform as expected.

The bottom line: - Kolibri is using strong early well results to make the case that the False Caney bench could unlock new reserves, more drilling locations and higher cash flow.