Kolibri Global Energy reported that its latest set of down-spaced wells in the Tishomingo field, Oklahoma, are yielding higher production rates compared to its earlier wells in the same area, it said in a company update released on Oct. 10.
Specifically, the Barnes 7-4H and 7-5H wells, both situated in the Lower Caney formation, have delivered average production rates of 686 barrels of oil equivalent per day (boe/d) and 624 boe/d over the past week, respectively.
Over the last seven days the Barnes 7-4H well has averaged 686 Barrels of oil equivalent per day (boepd) (534 barrels of oil per day (bopd) and the Barnes 7-5H well has averaged 624 boepd (472 bopd). These two wells are producing at higher rates than the Barnes 8-1H and 8-2H Caney wells did at this stage. These wells are the second group of down-spaced wells in the Caney and were drilled at a 6-well per section spacing pattern, just like the Caney Barnes 8-1H and 8-2H wells.
The company has finished drilling the Emery 17-3H and 17-4H wells and is currently drilling the Emery 17-5H. The Emery 17-3H and 17-5H are Lower Caney formation wells, while the Emery 17-4H is a T-Zone well. Completion operations for all three wells are expected to begin in the first week of November.
The gathering system issues (reported in the company’s press release in September) have been mainly resolved. The company has requested some additional optimization of the gathering system as it is still having a minor impact on the Company’s production.
The increased exit rate forecast is due to the additional eighth well that wasn’t included in the company’s original forecast, in addition to some of the wells starting production later than originally planned.
The average production, revenue and Adjusted EBITDA guidance shows significant growth from 2022 even though this guidance has been revised lower from the company’s initial guidance due to a few factors. The main factor is timing, as new wells started producing later than originally forecasted. Since we added an additional well to our original planned drilling program the timing of the production from the Emery 3 well pad was pushed back. In addition, the field gathering system issues discussed above impacted production, and the upper Caney well that the company tested came in below the company’s expected production range.
The company expects annual capex to be in the range of $51 million to $56 million and net debt to be $24 million to $26 million. This guidance is being revised higher due to the extra well the company added to the original drilling program and because the company is planning to start the drilling of a ninth well at the end of the year that will be part of a new 3 well pad that we expect to start producing in early 2024.
