Kolibri Global Energy Inc BNKPF

RE:Drilling costs

[auburn2]

Good post. My suspicion is that they want to do a PP. Why else revealing every detail in a timely manner except for costs and getting the CEO on BNN? They could certainly use the capital. I was in PPY.a (Painted Pony) when it was going from $1 to $10 (it went even higher, but my personal target was the $8 previous high), and they did several financings along the way.

Can anyone remember when BKX was this promotional? I guess the insiders have their boots fully filled.

oilobserver wrote: Lots of speculation about how much wells costs in this play.  If we look at the financial statements over the period of drilling/completing (Q416-q217), the company spent ~$14 mm to drill three wells and complete one.  In plays like this, drilling and completing each cost about the same (drilling costs have come down over the last few years, but completing costs have not as much), so 4 operations cost about $3.5 mm each.  So to drill and complete one well is likely around $7 mm.  The last two completions were larger and likely cost a bit more.  It's possible they spend a little capital on other projects, but I have not seen any discussion by the company on that (maybe someone can let me know if there are other projects...)

At 1800 boed and using the company's operating netback of $25.81 from Q1/17 (when oil prices were around what they are today), operating cash flow per year is ~$17 mm.  G&A is around $4 mm and interest is around $2 mm.  So cash flow available to invest is around $11 mm.  

Appears the company can afford to drill around 1.5 wells per year, unless they bring in additional capital.  Debt to cash flow is around 2x, which is a little high for such a small company and may limit how much further debt they can draw upon.