Exhibit 99.1

 

 

UNAUDITED CONDENSED

CONSOLIDATED INTERIM

FINANCIAL STATEMENTS

 

JUNE 30, 2025

 

 

 

 

KOLIBRI GLOBAL ENERGY INC.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION

(Unaudited, Expressed in Thousands of United States Dollars)

 

   June 30,   December 31, 
   2025   2024 
Current assets          
Cash and cash equivalents  $3,132   $4,314 
Accounts receivable and other receivables   3,660    9,733 
Deposits and prepaid expenses   646    718 
Fair value of commodity contracts (Note 3)   825    254 
    8,263    15,019 
           
Non-current assets          
Property, plant and equipment (Note 5)   253,223    232,962 
Right of use assets (Note 6)   1,331    748 
Fair value of commodity contracts (Note 3)   -    30 
    254,554    233,740 
           
Total assets  $262,817   $248,759 
           
Current liabilities          
Accounts payable and other payables (Note 4)  $20,099   $15,090 
Lease liabilities   1,075    586 
    21,174    15,676 
           
Non-current liabilities          
Loans and borrowings (Note 8)   29,702    33,240 
Asset retirement obligations, net   2,414    2,168 
Lease liabilities   294    167 
Deferred income taxes   10,755    8,701 
Fair value of commodity contracts (Note 3)   85    - 
    43,250    44,276 
           
Equity          
Shareholders’ capital   295,490    295,309 
Treasury stock   (234)   - 
Contributed surplus   26,401    25,380 
Accumulated deficit   (123,264)   (131,882)
    198,393    188,807 
           
Total equity and liabilities  $262,817   $248,759 

 

See accompanying notes to unaudited condensed consolidated interim financial statements.

 

1

 

 

KOLIBRI GLOBAL ENERGY INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(Unaudited, expressed in Thousands of United States dollars, except per share amounts)

 

   Three months ended June 30   Six months ended June 30 
   2025   2024   2025   2024 
Revenue                    
Oil and natural gas revenue, net of royalties (Note 10)  $10,788   $13,915   $27,160   $28,141 
Other income   325    1    326    60 
    11,113    13,916    27,486    28,201 
Expenses                    
Production and operating expenses   1,738    2,109    3,965    4,355 
Depletion, depreciation and amortization (Note 5,6)   3,516    3,700    7,579    7,594 
General and administrative expenses   1,409    1,528    2,734    2,793 
Stock based compensation (Note 9)   488    411    725    539 
    7,151    7,748    15,003    15,281 
                     
Finance income                    
Realized gain on financial commodity contracts (Note 3)   40    -    40    - 
Unrealized gain on financial commodity contracts (Note 3)   490    445    455    - 
Interest income   8    -    16    - 
Foreign exchange gain   2    -    1    - 
    540    445    512    - 
                     
Finance expense                    
Realized loss on financial commodity contracts (Note 3)   -    242    -    583 
Unrealized loss on financial commodity contracts (Note 3)   -    -    -    470 
Interest on loans and borrowings   640    813    1,336    1,728 
Foreign exchange loss   -    2    -    2 
Accretion expense   73    44    124    89 
    713    1,101    1,460    2,872 
                     
Net income before income taxes   3,789    5,512    11,535    10,048 
Income tax expense   936    1,451    2,917    2,642 
                     
Net income and comprehensive income  $2,853   $4,061   $8,618   $7,406 
                     
Basic net income per share (Note 7)  $0.08   $0.11   $0.24   $0.21 
Diluted net income per share (Note 7)  $0.08   $0.11   $0.24   $0.20 

 

See accompanying notes to the unaudited condensed consolidated interim financial statements.

 

2

 

 

KOLIBRI GLOBAL ENERGY INC.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

(Unaudited, expressed in Thousands of United States dollars, except number of shares)

 

   Share Capital  

Treasury Stock

   Contributed       Total 
   Shares   Amount   Shares   Amount    Surplus  

Deficit

   Equity 
Balance at January 1, 2025   35,460,309   $295,309    -   $-   $25,380   $(131,882)  $188,807 
Stock based compensation (Note 9)   -    -    -    -    825    -    825 
Stock options exercised (Note 9)   96,303    273    -    -    (133)   -    140 
Restricted stock issued (Note 9)   87,858    331    -    -    (331)   -    - 
Treasury share purchases   -    -    (89,337)   (657)   -    -    (657)
Retirement of treasury shares   (56,000)   (423)   56,000    423    -    -    - 
Stock based compensation reserve for income taxes   -    -    -    -    660    -    660 
Net income   -    -    -    -    -    8,618    8,618 
Balance at June 30, 2025   35,588,470   $295,490    (33,337)  $(234)  $26,401   $(123,264)  $198,393 
                                    
Balance at January 1, 2024   35,625,587   $296,232    -   $-   $24,179   $(149,997)  $170,414 
Stock based compensation (Note 9)   -    -    -    -    624    -    624 
Stock options exercised (Note 9)   75,000    84    -    -    (40)   -    44 
Restricted stock issued (Note 9)   35,378    142    -    -    (142)   -    - 
Net income   -    -    -    -    -    7,406    7,406 
Balance at June 30, 2024   35,735,965   $296,458    -   $-   $24,621   $(142,591)  $178,488 

 

See accompanying notes to the unaudited condensed consolidated interim financial statements.

 

3

 

 

KOLIBRI GLOBAL ENERGY INC.

 CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS

SIX MONTHS ENDED JUNE 30

(Unaudited, Expressed in Thousands of United States Dollars)

 

   2025   2024 
         
Cash flows from operating activities          
Net income  $8,618   $7,406 
Adjustments for:          
Depletion, depreciation and amortization   7,579    7,594 
Accretion expense   124    89 
Interest expense   1,336    1,728 
Income tax expense   2,917    2,642 
Amortization of loan acquisition costs   75    113 
Unrealized (gain) loss on financial commodity contracts (Note 3)   (455)   470 
Stock based compensation (Note 9)   725    539 
Gain on sale of assets   -    (8)
Loss on asset retirement abandonment   8    - 
Cash paid for interest   (1,608)   (1,534)
Cash paid for income taxes   (495)   - 
Cash paid for asset retirement abandonment   (12)   - 
Unrealized foreign exchange loss (gain)   (3)   3 
Change in non-cash working capital (Note 4)   3,685    (2,029)
Net cash from operating activities   22,494    17,013 
           
Cash flows from investing activities          
Additions to property, plant and equipment (Note 5)   (26,851)   (11,747)
Proceeds from sale of assets   -    8 
Change in non-cash working capital (Note 4)   8,026    (8,724)
Net cash used in investing activities   (18,825)   (20,463)
           
Cash flows from financing activities          
Repayment of loans and borrowings   (6,000)   (5,500)
Proceeds from loans and borrowings   3,000    9,500 
Payment of financing costs   (613)   (47)
Purchases of treasury stock   (657)   - 
Principal paid on lease payments   (672)   (549)
Interest paid on lease payments   (52)   (46)
Proceeds from stock option exercises   140    44 
Net cash (used in) from financing activities   (4,854)   3,402 
           
Foreign exchange effect on cash and cash equivalents   3    (1)
           
Change in cash and cash equivalents   (1,182)   (49)
Cash and cash equivalents, beginning of period   4,314    598 
Cash and cash equivalents, end of period  $3,132   $549 

 

See accompanying notes to the unaudited condensed consolidated interim financial statements.

 

4

 

 

Notes to the unaudited Condensed Consolidated Interim Financial Statements

For the Three and Six Months Ended June 30, 2025

(Unaudited, expressed in Thousands of United States dollars except per share information)

 

1.NATURE OF OPERATIONS

 

Kolibri Global Energy Inc. (the “Company” or “KEI”), was incorporated under the Business Corporations Act (British Columbia) on May 6, 2008. KEI is a North American energy company focused on finding and exploiting energy projects in oil and gas. 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 in oil, gas and clean and sustainable energy. The Company’s shares are traded on the Toronto Stock Exchange under the stock symbol KEI and on the NASDAQ under the stock symbol KGEI.

 

The unaudited condensed consolidated interim financial statements were approved by the Company’s Board of Directors on August 8, 2025.

 

2.BASIS OF PRESENTATION

 

These unaudited condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard (IAS) 34, “Interim Financial Reporting” following the same accounting policies, except as described below, and methods of computation as the annual consolidated financial statements of the Company for the year ended December 31, 2024. The disclosures provided below are incremental to those included with the annual consolidated financial statements and certain disclosures, which are normally required to be included in the notes to the annual consolidated financial statements, have been condensed or omitted. These unaudited condensed consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto in the Company’s annual filings for the year ended December 31, 2024.

 

3.COMMODITY CONTRACTS

 

At June 30, 2025 the following financial commodity contracts were outstanding and recorded at estimated fair value:

 

      Total Volume Hedged   Price 
Commodity  Period  (BBLS)   ($/BBL) 
Oil – WTI Costless Collars  July 1, 2025 to September 30, 2025   21,000    $65.00 - $82.00 
Oil – WTI Costless Collars  July 1, 2025 to September 30, 2025   750    $65.00 - $80.50 
Oil – WTI Costless Collars  July 1, 2025 to September 30, 2025   21,900    $63.25 - $83.65 
Oil – WTI Costless Collars  July 1, 2025 to September 30, 2025   10,800    $62.75 - $82.00 
Oil – WTI Costless Collars  October 1, 2025 to December 31, 2025   10,800    $62.00 - $81.50 
Oil – WTI Costless Collars  October 1, 2025 to December 31, 2025   11,400    $61.75 - $80.70 
Oil – WTI Costless Collars  July 1, 2025 to September 30, 2025   54,000    $59.75 - $78.00 
Oil – WTI Costless Collars  October 1, 2025 to December 31, 2025   39,000    $59.00 - $77.30 
Oil – WTI Costless Collars  January 1, 2026 to March 31, 2026   48,000    $58.50 - $77.25 
Oil – WTI Costless Collars  October 1, 2025 to December 31, 2025   31,200    $58.75 - $78.00 
Oil – WTI Costless Collars  April 1, 2026 to June 30, 2026   48,300    $57.00 - $75.25 
Oil – WTI Deferred Put  January 1, 2026 to March 31, 2026   20,589    $50.00 
Oil – WTI Costless Collars  July 1, 2026 to September 30, 2026   48,300    $50.25 - $66.75 
Oil – WTI Costless Collars  October 1, 2026 to December 31, 2026   24,000    $52.25 - $69.00 

 

5

 

 

Notes to the unaudited Condensed Consolidated Interim Financial Statements

For the Three and Six Months Ended June 30, 2025

(Unaudited, expressed in Thousands of United States dollars except per share information)

 

The estimated fair value results in a $0.7 million net asset as of June 30, 2025 (December 31, 2024: $0.3 million asset) for the financial oil and gas contracts which has been determined based on the prospective amounts that the Company would receive or pay to terminate the contracts, consisting of a current asset of $0.8 million and a long term liability of $0.1 million (December 31, 2024: current asset of $0.2 million and a long term asset of $0.1 million).

 

In July 2025, the Company entered into the following additional financial commodity contracts:

 

      Total Volume Hedged   Price 
Commodity  Period  (BBLS)   ($/BBL) 
Oil – WTI Deferred Put  April 1, 2026 to June 30, 2026   9,900    $52.70 
Oil – WTI Costless Collars  October 1, 2026 to December 31, 2026   5,100    $52.60 - $70.00 

 

The realized and unrealized gains/losses from the financial commodity contracts are as follows:

 

  

Three months ended

June 30,

  

Six months ended

June 30,

 
   2025   2024   2025   2024 
                 
Realized gain (loss) on financial commodity contracts  $40   $(242)  $40   $(583)
                     
Unrealized gain (loss) on financial commodity contracts  $490   $445   $455   $(470)

 

4. SUPPLEMENTAL CASH FLOW INFORMATION

 

Changes in non-cash flow working capital is comprised of the following source (use) of cash:

 

  

Six months ended

June 30,

 
   2025   2024 
         
Trade and other receivables  $6,073   $(2,274)
Deposits and prepaid expenses   72    241 
Trade and other payables   5,567    (8,721)
Foreign currency   (1)   1 
   $11,711   $(10,753)
           
Related to operating activities  $3,685   $(2,029)
           
Related to investing activities  $8,026   $(8,724)

 

6

 

 

Notes to the unaudited Condensed Consolidated Interim Financial Statements

For the Three and Six Months Ended June 30, 2025

(Unaudited, expressed in Thousands of United States dollars except per share information)

 

5.

PROPERTY, PLANT AND EQUIPMENT

 

  

Oil and Natural

Gas Interests

  

Processing and

Other Equipment

   Total 
Cost or deemed cost               
Balance at January 1, 2024  $287,839   $1,438   $289,277 
Additions (a)   31,516    9    31,525 
Balance at December 31, 2024  $319,355   $1,447   $320,802 
Additions (b)   27,322    12    27,334 
Balance at June 30, 2025  $346,677   $1,459   $348,136 
                
Accumulated depletion and depreciation               
Balance at January 1, 2024  $71,747   $1,369   $73,116 
Depletion and depreciation   14,701    23    14,724 
Balance at December 31, 2024  $86,448   $1,392   $87,840 
Depletion and depreciation for the period   7,063    10    7,073 
Balance at June 30, 2025  $93,511   $1,402   $94,913 
                
Net carrying amounts               
                
At December 31, 2024  $232,907   $55   $232,962 
At June 30, 2025  $253,166   $57   $253,223 

 

(a)Includes non-cash additions of $23 from capitalized stock-based compensation and $60 from assets related to ARO liabilities.
(b)Includes non-cash additions of $100 from capitalized stock-based compensation and $198 from assets related to ARO liabilities.

 

6.RIGHT OF USE ASSETS

 

  

Right of Use

Assets

 
Balance at January 1, 2024  $1,190 
Additions   726 
Amortization   (1,168)
Balance at December 31, 2024  $748 
Additions   1,089 
Amortization   (506)
Balance at June 30, 2025  $1,331 

 

7

 

 

Notes to the unaudited Condensed Consolidated Interim Financial Statements

For the Three and Six Months Ended June 30, 2025

(Unaudited, expressed in Thousands of United States dollars except per share information)

 

7. EARNINGS PER SHARE

 

  

Three months ended

June 30,

  

Six months ended

June 30,

 
   2025   2024   2025   2024 
Basic earnings per share                    
                     
Net income  $2,853   $4,061   $8,618   $7,406 
                     
Weighted average number of common shares - basic   35,518    35,644    35,501    35,635 
                     
Net income per share – basic  $0.08   $0.11    0.24   $0.21 
                     
Diluted earnings per share                    
                     
Net income  $2,853   $4,061   $8,618   $7,406 
                     
Effect of outstanding options and RSUs   777    1,084    831    1,084 
                     
Weighted average number of common shares - diluted   36,295    36,728    36,332    36,719 
                     
Net income per share – diluted  $0.08   $0.11   $0.24   $0.20 

 

8.LOANS AND BORROWINGS

 

In June 2025, the Company’s US subsidiary amended the credit facility, which is secured by the US subsidiary’s interests in the Tishomingo Field. The credit facility, which is now held by a bank syndicate that includes both BOK Financial and Arvest Bank, expires in June 2029 and is intended to fund the drilling of the Caney wells in the Tishomingo Field.

 

The borrowing base of the credit facility was increased from $50.0 million to $65.0 million and the Company has an available borrowing capacity of $34.5 million at June 30, 2025. The credit facility is subject to a semi-annual review and redetermination of the borrowing base. The next redetermination will be in the third quarter of 2025. Future commitment amounts will be subject to new reserve evaluations and there is no guarantee that the size and terms of the credit facility will remain the same after the borrowing base redetermination. Any redetermination of the borrowing base is effective immediately and if the borrowing base is reduced, the Company has six months to repay any shortfall.

 

The credit facility has two primary debt covenants. One covenant requires the US subsidiary to maintain a positive working capital balance which includes any unused excess borrowing capacity and excludes the fair value of commodity contracts, the current portion of long-term debt (the “Current Ratio”). The second covenant ensures the ratio of outstanding debt and long-term liabilities to a trailing twelve month adjusted EBITDA amount (the “Maximum Leverage Ratio”) be no greater than 3 to 1 at any quarter end. Adjusted EBITDA is defined as net income excluding interest expense, depreciation, depletion and amortization expense, and other non-cash and non-recurring charges including severance, stock based compensation expense and unrealized gains or losses on commodity contracts.

 

8

 

 

Notes to the unaudited Condensed Consolidated Interim Financial Statements

For the Three and Six Months Ended June 30, 2025

(Unaudited, expressed in Thousands of United States dollars except per share information)

 

The Company was in compliance with both covenants for the quarter ended June 30, 2025. At June 30, 2025, the Current Ratio of the US Subsidiary was 1.9 to 1.0 and the Maximum Leverage Ratio was 0.73 to 1.0 for the three months ended June 30, 2025.

 

At June 30, 2025, loans and borrowings of $30.5 million (December 31, 2024: $33.5 million) are presented net of loan acquisition costs of $0.8 million (December 31, 2024: $0.2 million).

 

9.STOCK BASED COMPENSATION

 

The number and weighted average exercise prices of stock options are as follows (in Canadian dollars):

 

   Six months ended June 30, 
   2025   2024 
   Number of options   Weighted average exercise price   Number of options   Weighted average exercise price 
                 
Outstanding at January 1   1,073,924   C$2.94    939,634   C$2.36 
Granted   -    -    293,190    4.23 
Expired   -    -    (33,000)   3.00 
Cancelled   -    -    (45,900)   2.82 
Exercised   (96,303)   2.05    (75,000)   0.80 
Outstanding at June 30   977,621   C$3.04    1,078,924   C$2.94 
                     
Exercisable at June 30   854,891   C$ 2.81    746,496   C$2.23 
                     
Weighted average share price on date of exercise   96,303   C$ 10.35    75,000   C$4.54 

 

The range of exercise prices for the outstanding options is as follows (in Canadian dollars):

 

   Number of outstanding stock options   Weighted average exercise price   Weighted average contractual life (years) 
             
$4.90 to $6.04   242,234   C$5.48    7.9 
$1.80 to $4.90   357,190    3.74    7.4 
$0.80 to $1.80   378,197    0.80    1.5 
    977,621   C$3.04    5.2 

 

9

 

 

Notes to the unaudited Condensed Consolidated Interim Financial Statements

For the Three and Six Months Ended June 30, 2025

(Unaudited, expressed in Thousands of United States dollars except per share information)

 

The fair value of the stock options was estimated using Black Scholes model with the following weighted average inputs:

 

   Six Months Ended June 30, 2024 
     
Fair value at grant date (per option)  C$3.46 
      
Volatility (%)   77.0 
Forfeiture rate (%)   5%
Option life (years)   10 
Risk-free interest rate (%)   3.66 
Exercise price  C$4.23 
Share price at grant date  C$4.23 
Expected dividends   0%

 

The number and weighted average fair value of Restricted Stock Units (RSUs) are as follows (in Canadian dollars):

 

   Six months ended June 30, 
   2025   2024 
   Number of RSUs  

Weighted average

fair value

   Number of RSUs  

Weighted average

fair value

 
                 
Outstanding at January 1   232,125   C$4.53    119,140   C$5.28 
Granted   365,692    11.28    169,220    4.25 
Vested   (87,858)   4.62    (35,378)   5.27 
Cancelled   -    -    (20,857)   5.29 
Outstanding at June 30   509,959   C$9.36    232,125   C$4.53 

 

The fair value at grant date for the RSUs was $11.28 per RSU which was the closing share price on the date of grant.

 

Stock based compensation was recorded as follows:

 

  

Three months ended

June 30,

  

Six months ended

June 30,

 
   2025   2024   2025   2024 
                 
Expensed  $488   $411   $725   $539 
                     
Capitalized  $60   $62   $100   $85 

 

10

 

 

Notes to the unaudited Condensed Consolidated Interim Financial Statements

For the Three and Six Months Ended June 30, 2025

(Unaudited, expressed in Thousands of United States dollars except per share information)

 

10.REVENUES

 

The following table presents the Company’s gross oil and gas revenue disaggregated by revenue source:

 

  

Three months ended

June 30,

  

Six months ended

June 30,

 
   2025   2024   2025   2024 
                 
Oil revenue  $11,978   $16,701   $30,028   $33,249 
Natural gas revenue   809    147    2,127    592 
NGL revenue   1,001    830    2,655    2,081 
    13,790    17,678    34,810    35,922 
Royalties   (3,002)   (3,763)   (7,650)   (7,781)
   $10,788   $13,915   $27,160   $28,141 

 

11.INCOME TAXES AND DEFERRED TAXES

 

Income tax expense is charged at 24.7% for the three months ended June 30, 2025 and 25.3% for the six months ended June 30, 2025 representing the best estimate of the average annual effective tax rate expected to apply for the full year, applied to the pre-tax income of the three-month and six-month periods.

 

11