Energy Strategy Expansion
Kolibri Global Energy Updates Strategy, Forecasts Higher 2026 Earnings with New Bench Drilling
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Kolibri Global Energy (TSX: KEI, NASDAQ: KGEI) is raising its 2026 forecast and expanding its drilling strategy after discovering that multiple rock formations beyond its core target can produce oil economically. The company now expects Adjusted EBITDA of $56 million to $62 million — up from a prior range of $55 million to $60 million — on capital spending of $39 million to $43 million, according to Business Wire.
The update centers on the Tishomingo field in Oklahoma's Ardmore Basin. Kolibri has drilled primarily in the Lower Caney formation for years. Now it says other nearby rock layers — called benches — can also be developed profitably. A new well targeting one of those layers, the False Caney, is being added to the 2026 drilling schedule.
From One Rock Layer to a Multi-Bench Field
Kolibri's reserve report — the official tally of recoverable oil — currently counts only the Lower Caney. But the company says at least four other benches sit beneath its 17,100 net acres: the False Caney, Upper Caney, T-zone, and Sycamore. None of those appear in the existing reserve count, according to Markets Financial Content. If even one proves commercially viable, the company's inventory of drillable locations could grow dramatically.
CEO Wolf Regener called the updated plan "the beginning of our strategy to target other benches in the Tishomingo field." Kolibri holds 99% of its acreage as "held by production," meaning it does not face lease deadlines that would force rushed decisions. That flexibility lets the company test new zones carefully before committing full capital.
New Well Targets False Caney, Longer Laterals Prove Cheaper
The Lovina 5-8-1H well will be the first to test the False Caney bench. Kolibri plans to drill it as a longer lateral — stretching further underground than older wells — to get a clearer read on whether the layer can produce at commercial rates. The company is drilling some laterals up to two miles long, a shift from earlier one-mile designs, Business Wire reported.
CEO Regener told investors at the Lytham Partners Spring Conference on June 25 that longer laterals are being drilled faster and at lower cost than earlier wells. That cost improvement makes the new bench tests more affordable. The Upper Caney is scheduled for a test well in late 2026 or early 2027, with the T-zone and Sycamore to follow.
Revised Numbers Show Strong Growth, but Higher Debt Too
The new forecast projects average production of 4,700 to 5,200 barrels of oil equivalent per day — up from 4,400 to 4,800 in the April outlook. Revenue is expected to reach $78 million to $84 million, compared to $74 million to $79 million before. The oil price assumption actually dropped, from $74 per barrel to $70 per barrel WTI, making the higher forecast more conservative, according to The Province.
Capital spending jumped sharply — from $24 million to $27 million in the April plan to $39 million to $43 million now. That added spending will push net debt at year-end to an estimated $38 million to $42 million. Kolibri expanded its bank credit line to $75 million to fund the accelerated program. Analysts at InvestingPro noted the company carries a current ratio of just 0.43, flagging tight short-term liquidity.
Rocky Geology Adds Risk to an Ambitious Expansion
The Ardmore Basin's geology has tripped up Kolibri before. The first well on the Clifton Mack pad — the 11-14-1HR — had to be redrilled after unexpected underground conditions forced a redesigned casing program. That raised costs, though Regener said pressure readings from the redrill were "supportive" of strong future production rates, according to ca.marketscreener.com.
The Caney Shale has historically been called an "enigmatic" play. High clay content and water reactivity made early wells unpredictable. Kolibri's bet is that better drilling technology — longer laterals, batch drilling on multi-well pads — can unlock what older methods could not. If the False Caney test succeeds, the company's next annual reserve report could look very different.
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