KOLIBRI GLOBAL ENERGY INC. CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION (Form 6-K)

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.

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.

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.

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.

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

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	)

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

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.

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

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

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.