Kolibri Global Energy Inc. (TSX: KEI) (OTCQB: KGEIF):

All amounts are in U.S. Dollars unless otherwise indicated:

THIRD QUARTER HIGHLIGHTS

• Adjusted funds flow was $1.7 million in the third quarter of 2021 compared to $1.9 million in the third quarter of 2020. The decrease was mainly due to realized losses from commodity contracts in 2021 and a decrease of 15% in production partially offset by a 58% increase in average oil prices
• Net income for the third quarter of 2021 was $0.6 million compared to a net loss of $0.6 million for the third quarter of 2020
• Revenue, net of royalties was $3.9 million in the third quarter of 2021 compared to $2.5 million for the third quarter of 2020, which was an increase of 58%, as average prices increased by 58% which was partially offset by production decreases of 15%
• Average netback from operations for the third quarter of 2021 was $35.87/boe, an increase of 109% from the prior year third quarter due to higher prices in 2021. Average netback including commodity contracts for the third quarter of 2021 was $27.04 per boe, an increase of 9% from the prior year third quarter
• Average production for the third quarter of 2021 was 960 BOEPD, compared to third quarter 2020 average production of 1,134 BOEPD, which was a decrease of 15%. Average production for the third quarter of 2021 was only 3% lower than the second quarter 2021 production. The decrease compared to the prior year quarter was primarily due to normal production decline for existing wells
• General & administrative (“G&A”) expense decreased by 7% in the third quarter of 2021 compared to the prior year quarter due to management’s continued efforts to reduce G&A costs throughout the Company
• Interest expense decreased by 21% in the third quarter of 2021 compared to the same period in the prior year due to lower interest rates and principal payments on the credit facility during 2021 which reduced the outstanding loan balance
• Operating expenses for the third quarter of 2021 increased by 10% compared to the prior year third quarter. Operating expenses for the nine months ended September 30, 2021 increased by 7% compared to the prior year period. The increase was primarily due to higher production taxes in 2021 due to higher prices
• The balance on the credit facility was $17.3 million at September 30, 2021. As part of the September 2021 redetermination, the term of the loan was extended to June 2023 and the Company will make additional principal payments of $1.3 million by April 2022

KEI’s President and Chief Executive Officer, Wolf Regener commented:

“We are pleased that the Company generated third quarter 2021 net income of $0.6 million and adjusted funds flow of $1.7 million from our existing wells. Adjusted funds flow was just 8% lower than the third quarter of last year as the increase in prices offset the normal decline in production. In addition, the Company has made principal repayments of $3.4 million in 2021, which has reduced our interest expense by 34% in the first nine months of 2021 compared to the prior year. The Company expects its low decline rates to allow the Company to continue to generate positive cash flow from its existing operations into next year.

Adjusted funds flow was $1.7 million in the third quarter of 2021 compared to $1.9 million in the third quarter of 2020. The decrease was mainly due to realized losses from commodity contracts in 2021 and a decrease of 15% in production partially offset by a 58% increase in average oil prices.

Net income for the third quarter of 2021 was $0.6 million compared to a net loss of $0.6 million for the third quarter of 2020.

Average netback from operations for the third quarter of 2021 was $35.87/boe, an increase of 109% from the prior year third quarter due to higher prices in 2021. Average netback including commodity contracts for the third quarter of 2021 was $27.04 per boe, an increase of 9% from the prior year third quarter.

Average production for the third quarter of 2021 was 960 BOEPD, compared to third quarter 2020 average production of 1,134 BOEPD, which was a decrease of 15%. Average production for the third quarter of 2021 was only 3% lower than the second quarter 2021 production. The decrease compared to the prior year quarter was primarily due to normal production decline for existing wells.

Net revenue was $3.9 million in the third quarter of 2021 compared to $2.5 million for third quarter of 2020, which was an increase of 58%, as average prices increased by 58% which was partially offset by production decreases of 15%.

G&A expense decreased by 7% in the third quarter of 2021 compared to the prior year quarter due to management’s continued efforts to reduce costs throughout the Company.

Operating expenses averaged $8.40 per BOE for the third quarter of 2021 compared to $6.46 per BOE for the same period in 2020. The increase was mainly due to higher production taxes in the third quarter of 2021 which were $2.86 per BOE compared to $1.37 per BOE in the prior year third quarter. Operating expense per boe excluding production taxes for the third quarter of 2021 increased by 9% compared to the prior year quarter.”

Third Quarter 2021 versus Third Quarter 2020

Oil and gas gross revenues totaled $4.1 million in the third quarter of 2021 versus $2.7 million in the third quarter of 2020. Oil revenues increased $1.4 million or 52% as average oil prices increased by $30.91 per barrel or 80% to $69.61 partially offset by oil production decreases of 16% to 641 boepd. Natural gas revenues increased by $151,000 or 89% to $320,000 as natural gas prices increased $2.33/mcf or 130% which was partially offset by an average natural gas production decrease of 182 mcfpd or 18%. Natural gas liquids (NGLs) revenues increased $294,000 or 109% as NGL prices increased 137% to $34.36/boe which was partially offset by NGL production decreases of 24 boepd or 12%.

Average third quarter 2021 production per day decreased 16% from the third quarter of 2020. The decrease was primarily due to the normal production decline of existing wells.

Production and operating expenses increased to $742,000 in the third quarter of 2021, an increase of 10%. Operating expenses averaged $8.40 per BOE for the third quarter of 2021 compared to $6.46 per BOE for the same period in 2020. The increase was mainly due to higher production taxes in the third quarter of 2021 which were $2.86 per BOE compared to $1.37 per BOE in the prior year third quarter. Operating expense per boe excluding production taxes for the third quarter of 2021 increased by 9% compared to the prior year quarter mainly due to one-time field maintenance costs incurred in 2021.

Depletion and depreciation expense decreased $244,000 or 22% due to a decrease in production in the third quarter of 2021.

General and administrative expenses decreased $0.1 million or 8% in the third quarter of 2021 due to management’s continued efforts to reduce costs throughout the Company.

Finance income decreased $0.8 million in the third quarter of 2021 compared to the third quarter of 2020 due to realized gains on commodity contracts in the third quarter of 2020.

Finance expense decreased by $0.4 million in the third quarter of 2021 compared to the prior year quarter primarily due to lower unrealized losses on commodity contracts in the third quarter of 2021 compared to 2020 which were partially offset by lower interest expense.

FIRST NINE MONTHS 2021 HIGHLIGHTS

• Adjusted funds flow was $4.7 million in the first nine months of 2021 compared to $5.4 million in the first nine months of 2020. The decrease was primarily due to realized losses from commodity contracts in 2021 and a 16% decrease in production in the first nine months of 2021 compared to 2020 partially offset by a 57% increase in average prices
• Revenue, net of royalties was $10.7 million in the first nine months of 2020 compared to $7.1 million for first nine months of 2020, an increase of 52%, due to an increase in average prices of 57% partially offset by a decrease in production of 16%
• Average netback from operations for the first nine months of 2021 was $31.45/boe, an increase of 103% from the prior year period due to higher prices in 2021. Netback including commodity contracts for the first nine months of 2021 was $25.08/boe which was 7% higher than the prior year period
• Average production for the first nine months of 2021 was 991 BOEPD, a decrease of 16% compared to prior year first nine months average production of 1,174 BOEPD. The decrease was primarily due to the normal production decline of existing wells
• Net loss for the first nine months of 2021 was $1.3 million compared to a net loss of $69.3 million for the first nine months of 2020. The first nine months of 2021 included unrealized losses on commodity contracts of $3.0 million and the first nine months of 2020 included a PP&E impairment of $71.9 million
• General & administrative (“G&A”) expense was flat in the first nine months of 2021 compared to the first nine months of 2020 as cost cutting measures were offset by higher advisor fees in 2021
• Interest expense decreased by 34% in the first nine months of 2021 compared to the same period in the prior year due to lower interest rates and principal payments on the credit facility during 2021 which reduced the outstanding loan balance
• The Company received a notice in June 2021 from the Small Business Administration (SBA) that the entire balance of the original Paycheck Protection Program (PPP) loan of $0.3 million had been forgiven and the Company recorded this amount into income
• Operating expenses for the first nine months of 2021 increased by 7% compared to the prior year third period. The increase was primarily due to higher production taxes in 2021 due to higher prices.

First Nine Months of 2021 versus First Nine Months of 2020

Gross oil and gas revenues totaled $13.7 million in the first nine months of 2021 versus $9.0 million in the first nine months of 2020, an increase of 51%. Oil revenues were $11.5 million in the first nine months of 2021 versus $7.9 million in the same period of 2020, an increase of 47% as average oil prices increased 76% to $62.96 a barrel partially offset by oil production decreases of 16%. Natural gas revenues increased $0.3 million or 65% due to an average natural gas price increase of 97% partially offset by a 16% decrease in natural gas production. NGL revenue increased $0.6 million or 94% due to an average NGL price increase of 121% in the first nine months of 2021 partially offset by a decrease in NGL production of 12%.

Average production per day for the first nine months of 2021 decreased 16% from the prior year comparable period. The decrease was due to the normal production decline of existing wells.

Production and operating expenses increased to $2.7 million or 7% in the first nine months of 2021 compared to the prior year period. Operating expenses averaged $8.17 per BOE for the first nine months of 2021 compared to $6.45 per BOE for the same period in 2020. The increase was due to higher production taxes in the first nine months of 2021 which were $2.59 per BOE compared to $1.75 per BOE in the prior year period. Operating expense per boe excluding production taxes for the first nine months of 2021 increased by 19% compared to the prior year period due to one-time field maintenance costs.

Depletion and depreciation expense decreased $0.9 million due to decreased production and a lower PP&E balance due to the impairment.

G&A expenses were flat as management’s continued efforts to reduce G&A costs throughout the Company were offset by higher advisor fees.

Finance income decreased by $4.4 million due to realized and unrealized gains on financial commodity contracts recorded in 2020.

Finance expense increased $4.3 million due to realized losses on commodity contracts of $1.7 million and unrealized losses of $3.0 million in the first nine months of 2021 partially offset by lower interest expenses compared to the prior year period.

The information outlined above is extracted from and should be read in conjunction with the Company's unaudited financial statements for the three and nine months ended September 30, 2021 and the related management's discussion and analysis thereof, copies of which are available under the Company's profile at www.sedar.com.

NON-GAAP MEASURES

Netback from operations, netback including commodity contracts, net operating income and adjusted funds flow (collectively, the "Company’s Non-GAAP Measures") are not measures recognized under Canadian generally accepted accounting principles ("GAAP") and do not have any standardized meanings prescribed by GAAP.

The Company’s Non-GAAP Measures are described and reconciled to the GAAP measures in the management's discussion and analysis, which are available under the Company's profile at www.sedar.com.

CAUTIONARY STATEMENTS

In this news release and the Company’s other public disclosure:

Caution Regarding Forward-Looking Information

This release contains forward-looking information including information regarding the proposed timing and expected results of exploratory and development work including production from the Company's Tishomingo field, Oklahoma acreage, expectations regarding cash flow, the Company’s reserves based loan facility, including scheduled repayments, expected hedging levels and the Company’s strategy and objectives. The use of any of the words “target”, “plans”, "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe" and similar expressions are intended to identify forward-looking statements.

Such forward-looking information is based on management’s expectations and assumptions, including that the Company's geologic and reservoir models and analysis will be validated, that indications of early results are reasonably accurate predictors of the prospectiveness of the shale intervals, that previous exploration results are indicative of future results and success, that expected production from future wells can be achieved as modeled and that declines will match the modeling, that future well production rates will be improved over existing wells, that rates of return as modeled can be achieved, that recoveries are consistent with management’s expectations, that additional wells are actually drilled and completed, that design and performance improvements will reduce development time and expense and improve productivity, that discoveries will prove to be economic, that anticipated results and estimated costs will be consistent with managements’ expectations, that all required permits and approvals and the necessary labor and equipment will be obtained, provided or available, as applicable, on terms that are acceptable to the Company, when required, that no unforeseen delays, unexpected geological or other effects, equipment failures, permitting delays or labor or contract disputes are encountered, that the development plans of the Company and its co-venturers will not change, that the demand for oil and gas will be sustained, that the Company will continue to be able to access sufficient capital through financings, credit facilities, farm-ins or other participation arrangements to maintain its projects, that the Company will continue in compliance with the covenants under its reserves-based loan facility and that the borrowing base will not be reduced, that funds will be available from the Company’s reserves based loan facility when required to fund planned operations, that the Company will not be adversely affected by changing government policies and regulations, social instability or other political, economic or diplomatic developments in the countries in which it operates and that global economic conditions will not deteriorate in a manner that has an adverse impact on the Company's business and its ability to advance its business strategy.

Forward looking information involves significant known and unknown risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to: any of the assumptions on which such forward looking information is based vary or prove to be invalid, including that the Company’s geologic and reservoir models or analysis are not validated, anticipated results and estimated costs will not be consistent with managements’ expectations, the risks associated with the oil and gas industry (e.g. operational risks in development, exploration and production; delays or changes in plans with respect to exploration and development projects or capital expenditures; the uncertainty of reserve and resource estimates and projections relating to production, costs and expenses, and health, safety and environmental risks including flooding and extended interruptions due to inclement or hazardous weather), the risk of commodity price and foreign exchange rate fluctuations, risks and uncertainties associated with securing the necessary regulatory approvals and financing to proceed with continued development of the Tishomingo Field, the Company or its subsidiaries is not able for any reason to obtain and provide the information necessary to secure required approvals or that required regulatory approvals are otherwise not available when required, that unexpected geological results are encountered, that completion techniques require further optimization, that production rates do not match the Company’s assumptions, that very low or no production rates are achieved, that the Company will cease to be in compliance with the covenants under its reserves-based loan facility and be required to repay outstanding amounts or that the borrowing base will be reduced pursuant to a borrowing base re-determination and the Company will be required to repay the resulting shortfall, that the Company is unable to access required capital, that funding is not available from the Company’s reserves based loan facility at the times or in the amounts required for planned operations, that occurrences such as those that are assumed will not occur, do in fact occur, and those conditions that are assumed will continue or improve, do not continue or improve and the other risks identified in the Company’s most recent Annual Information Form under the “Risk Factors” section, the Company’s most recent management's discussion and analysis and the Company’s other public disclosure, available under the Company’s profile on SEDAR at www.sedar.com.

With respect to estimated reserves, the evaluation of the Company’s reserves is based on a limited number of wells with limited production history and includes a number of assumptions relating to factors such as availability of capital to fund required infrastructure, commodity prices, production performance of the wells drilled, successful drilling of infill wells, the assumed effects of regulation by government agencies and future capital and operating costs. All of these estimates will vary from actual results. Estimates of the recoverable oil and natural gas reserves attributable to any particular group of properties, classifications of such reserves based on risk of recovery and estimates of future net revenues expected therefrom, may vary. The Company's actual production, revenues, taxes, development and operating expenditures with respect to its reserves will vary from such estimates, and such variances could be material. In addition to the foregoing, other significant factors or uncertainties that may affect either the Company’s reserves or the future net revenue associated with such reserves include material changes to existing taxation or royalty rates and/or regulations, and changes to environmental laws and regulations.

Although the Company has attempted to take into account important factors that could cause actual costs or results to differ materially, there may be other factors that cause actual results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. The forward-looking information included in this release is expressly qualified in its entirety by this cautionary statement. Accordingly, readers should not place undue reliance on forward-looking information. The Company undertakes no obligation to update these forward-looking statements, other than as required by applicable law.

About Kolibri Global Energy Inc.

KEI is an international energy company focused on finding and exploiting energy projects in oil, gas and clean and sustainable energy. Through various subsidiaries, the Company owns and operates energy properties in the United States. The Company continues to utilize its technical and operational expertise to identify and acquire additional projects. The common shares of the Company trade on the Toronto Stock Exchange (“TSX”) under the symbol “KEI” and on the Over the Counter QB (“OTCQB”) under the symbol “KGEIF”.

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