Kolibri Global Energy Inc. Boosts Borrowing Base by 30% to Support Growth Initiatives
- Kolibri Global Energy Inc. increases its borrowing base by 30% to US$65 million, enhancing growth potential.
- The company is drilling four Lovina wells, with production expected to start in July, boosting output and revenue.
- Kolibri will be included in the Russell 2000 Index, improving visibility and attracting institutional investors by June 2025.
Kolibri Global Energy Secures Increased Borrowing Base to Fuel Growth Initiatives
Kolibri Global Energy Inc. announces a significant financial development as its subsidiary, Kolibri Energy US Inc., successfully raises its borrowing base by 30%, increasing it from US$50 million to US$65 million. This increase is facilitated through a credit facility managed by a bank syndicate led by BOK Financial and includes Arvest Bank, which reaffirms the company's strong creditworthiness. Currently, Kolibri has drawn US$30.5 million from this facility, leaving substantial room for further financing that could bolster its operational capabilities and growth strategies in the competitive oil and gas sector.
The enhanced borrowing capacity arrives at a pivotal moment for Kolibri as it progresses with the fracture stimulation of four Lovina wells, with production anticipated to commence in July. This operational advancement is vital for the company, as the successful completion of these wells could significantly boost its production output and revenue streams. Furthermore, the Forguson 17-20-3H well, where Kolibri holds a 46% working interest, has been successfully drilled and is slated for stimulation following the Lovina wells. President and CEO Wolf Regener expresses optimism about the economic potential of the eastern acreage represented by the Forguson well, highlighting that this development could pave the way for additional growth opportunities in the region.
Kolibri’s financial maneuvering is complemented by its upcoming inclusion in the Russell 2000 Index, effective June 27, 2025. This inclusion is expected to enhance the company's visibility among a broader range of investors, aligning it with a benchmark that manages approximately $10.6 trillion in assets. By being part of this index, Kolibri positions itself strategically within the market, potentially attracting more institutional investors and improving its overall market presence as it continues to pursue drilling programs and shareholder value initiatives.
In addition to these developments, Kolibri is actively engaging with investors through a Virtual Non-Deal Roadshow scheduled for June 30, 2025. This engagement aims to communicate the company's growth strategies and operational updates, enhancing transparency and fostering investor confidence. With a clear focus on drilling initiatives and share buyback programs, Kolibri Global Energy Inc. remains dedicated to maximizing shareholder value while exploring and developing its oil and gas projects across North America.