Kolibri Global Energy Inc.

Good day and welcome to the Colibri Global Energy's first quarter 2025 financial conference call. All participants will be in a listen-only mode. Media may monitor this call in a listen-only mode. They are free to quote any member of management but are asked to not quote remarks for any other participants without the participant's permission. If anyone has any trouble and needs assistance, Please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touch tone phone. To withdraw your question, please press star then two. Please note, this event has been recorded. I advise participants that this conference has been recorded today as of May 14, 2025. This call will be available on the company's website at www.kolibrienergy.com. This call may include forward-looking statement, information regarding Kolibri's strategic plans, anticipated production, capital expenditures, exit rates, and cash flows, reserves, and other estimates and forecasts. Forward-looking statements is subject to risk and uncertainties, and actual results will vary from the forward-looking statements. This call may include future-oriented financial information and financial outlook information, which Colibri disclosed in order to provide readers with a more complete perspective on Colibri's potential future operations and such information may not be appropriate for other purposes. For a description of assumptions on which such forward-looking information is based and the applicable risk and uncertainties and Colibri's policy for updating such statements, we direct you to Colibri's most recent annual information form and management's discussion and analysis for the period under discussion, as well as the Colibri's most recent corporate presentation, all of which are available on the Colibri's website. Listeners should not place undue reliance on forward-looking information. Colibri undertakes no obligation to update any forward-looking future-oriented financial or financial outlook information other than as required by applicable law. I would now like to turn the call over to Mr. Wolf Regner, the President and Chief Executive Officer of Colibri Global Energy, Inc. Please go ahead, sir.

Thank you. And thank you, everyone, for joining us today. With me on today's call is Gary Johnson, our Chief Financial Officer. As I'm sure you're aware, we released our first quarter 2025 results this morning, and we are very pleased with what we've achieved this quarter, which continues to build on our last two years' results in multiple ways. Reduction increases, 23% over first quarter 2024. Operating expenses remain low, just over $7 a barrel of oil equivalent. leading to really good netbacks. We're continuing to deliver even more efficiencies by drilling five wells in the quarter and cutting our drilling times down by a further 25% in the latest one-and-a-half-mile lateral wells. This saves money and thus improves our internal rates of return on our new wells even further. You can see from our corporate presentation how even at lower oil prices, we can drill wells and make good rates of return. Our break-even oil price is quite low. So things are going very well, and we look forward to increasing our production further when we complete these wells later this quarter. With that, I'll now turn the call over to Gary to discuss our financial results. Go ahead, Gary.

Thanks, Will, and thanks, everyone, for being on the call. I'm just going to go over a few highlights of the first quarter, and then we'll take questions. All amounts are in U.S. dollars unless otherwise stated. As you can see from the earnings release today, we had another good very good quarter with strong increases in net income, production, and adjusted EBITDA. Net income was up 70% to $5.8 million with basic EPS of $0.16 per share compared to $3.3 million and $0.09 per share in the prior year quarter. The increase was due to an increase in revenues and lower realized and unrealized commodity contract losses compared to the prior year first quarter. which were partially offset by higher income tax expense. Average production was up 23% to 4,077 BLE per day compared to 3,305 BLE per day in the prior year quarter. The increase was due to the wells that were drilled during 2024. Adjusted EBITDA was 12.8 million compared to 10.4 million in the prior year quarter, which was an increase of 24%, mainly due to higher revenues. That revenue increased by 15% to $16.4 million compared to $14.2 million due to the higher production, which was partially offset by lower average prices, which were down 6%. Operating expense was $7.70 per billion for the quarter. compared to $8.36 per VOE in the prior year first quarter, which was a decrease of 50%. Operating expense in the first quarter of last year did include $600,000 of prior period gathering and processing cost adjustments. Our net backroom operations decreased slightly to $37.55 per VOE compared to $38.94 per VOE in the prior year quarter due to lower average prices. And to be clear, the impact of hedges and netbacks, they were only down about 1% from the prior year quarter. And with that, I'll go back to Wolf. Thanks, Gary.