Kolibri Global Energy Trims FY23 Outlook Amid Operational Challenges

Kolibri Global Energy Inc KGEI reduced its FY23 outlook and provided operational updates.  

Outlook: The company lowered the guidance for average production to 2,800 to 3,000 boepd (up 71% to 83% Y/Y) from 3,100-3,400 boepd, adjusted EBITDA to $39 million-$41 million (+55% to 63% Y/Y) from $45 million-$50 million and revenue to $51 million-$53 million (+36% to 41% Y/Y) from $57 million-$62 million. 

The guidance is trimmed due to timing on later-than-previously forecasted new wells producing start, lower-than-expected oil prices, and production impacts from the shut-in of wells.

The company now expects annual capital expenditures of $47 million-$49 million (vs. $51 million-$56 million earlier). 

Operational Update: The company stated that Emery 17-3H, 17-4H, and 17-5H wells were successfully drilled and fracture-stimulated safely and under budget.

Also, the fracture stimulation of these three Emery wells impacted the surrounding wells more than was originally anticipated and recovery is expected to take few months, said the company.

Apart from this, KGEI stated that the Velin 12-9H well is expected to be finished drilling in the coming week, and the rig is planned to spud the next well on the pad at the beginning of January.

Price Action: KGEI shares closed at $3.70 on Thursday.