Kolibri Global Energy Inc BNKPF

Drilling costs

[oilobserver]

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.

[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

[himmler]

Well I can say ..yes..there was a time that this company promoted itself.But then again..I've owned shares for almost ten years.I can say with certainty that this company always looked for ways to sell itself.Thats what the entire premise of BKX was..and I supect still is.They will build this up and than sell it and move on.That was the strategy with Poland..but I know for a fact that most of

[himmler]

You sound exactly the same as Auborn ..and you just joined stockhouse a week ago..I guess we will call you Auborn3 lol. How many accounts do you have auborn??

[auburn2]

Where do you see BKX reporting drilling costs as being on budget or under budget? The CFO told me they're going over budget due to demand for services outstripping supply. If they were meeting or going under budget, wouldn't they proudly report that?

[auburn2]

Correction: there's no "budget" per se, there's that $5.7mm in the presentation that generates the paper scenarios. I'd expect prices to go up and up against a recovering oil environment but the CFO says prices fluctuate. At any rate, I always like to consider conservative worst-case scenarios, so I'm definitely not using $5.7mm in my calculations.

[himmler]

This was from september..CAMARILLO, CA, Sept. 27, 2017 /CNW/ - BNK Petroleum Inc. (the "Company") (TSX: BKX) is pleased to announce the completion of the fracture stimulation of the Brock 9-2H well (100% working interest) which is located in BNK's Tishomingo field, in the SCOOP region of Oklahoma. The fracture stimulation was successful, with 13.5

[auburn2]

Good catch. IMO they should just report the exact figures instead of "on time and under budget" which is needldessly vague. TGL stated: "The three wells were drilled, completed and equipped for approximately $1.75-million ($2.2-million (Canadian)) per well. This is significantly below the initial estimated cost of $2.7-million (Canadian) per well. " That makes it perfectly

[wittmann]

Have you guys ever read the costs associated with companys that drill for oil and gas...Try crew energy...at the end they say that"our oil can be..but not always..combined in a way where the BBL of oil can be reported as c.f. of natgas..as equivalent. I haven't invested in that company for years...but BKX is crystal clear in comparison. Sun or..one of Canadas largest oilcos have also in

[oilobserver]

i expressed no opinion, just some analysis based on financial statements - why is your most imprortant critisism how long my account has been alive?  happy to resond to analytical responses - but this is pretty weak.  If you'd be happier to drive on in the dark, without looking at financial statements, I'm happy to go back in to the background...

[BrokerG]

I thought Wolf's video was extremely positive and necessary. Now that production is beginning to increase it is time to self promote. The question we need answered is their planned drilliing program for 2018. Will they use only cash flow from existing wells or a combination of debt/cash flow or share issuance. Wolf's video was all about shareholder value, so let's hope dilution is not

[wittmann]

Hi Broker.My tablet won't allow downloads.Just wondering..did Wolf say anything more about drilling this year?..Only 2 months left so it's doubtful...but do you know?I can't find anything more than on past updates. Thanks.

[BrokerG]

Nothing specific. He mentioned that they will continue to drill along the same line and is extremely optimistic on future growth from that field.  NO exact drilling dates mentioned. They most likely want to see some cash flow over the next few months and then begin setting up financing for the next wells. I would hope that would be made public soon.

[himmler]

Then do what you say...go into BKX's background.You didnt do any DD about this company at all.Thats ok...most of you newbies dont,you just parrot each others critisism. Its you guys that drive in the dark.Fracking and oilcos financial analysis is beyond your scope.Its more than just the last couple of financial statements that matter.Thats part of it..to be sure..but ...the future is the most

[pabaloo]

Well you clowns herd the boss! Beat it! He's the only one who knows anything here your opinions  dont count