Operations Update: Natchez Island Field and Fayette Field
July 25 2011 - 2:05PM
PR Newswire (Canada)
NATCHEZ, Miss., July 25, 2011 /CNW/ -- NATCHEZ, Miss., July 25,
2011 /CNW/ -- NATCHEZ ISLAND FIELD Robert A. Kadane, President of
KFG Resources Ltd, reported today that the Roundtree #1 well has
successfully reestablished production in the field. The well was
completed in the Nichols Sand of the Wilcox formation at 5775'
flowing 101 BOPD, No Water, Flowing Tubing Pressure 550# on a
6/64th inch choke. It is planned to produce the well between 75 and
80 BOPD. KFG owns a 12.5% working interest in the well along with a
2.5% overriding royalty. At payout of all costs, KFG's working
interest increases to 29.375% and the overriding royalty ceases. A
decision will be made in about 60 days concerning drilling an
offset. On another part of the 1500 acre lease the Roundtree #2 was
drilled to 6000' and abandoned as a dry hole. KFG had virtually no
financial exposure in the #2 well. A third well, the Roundtree #3,
will be drilled in about 2 months in a different area of the
acreage. FAYETTE FIELD KFG has moved in and is drilling the Spring
Hill L-T #1 to 9900' to test the Lower Tuscalossa formation. KFG
owns a 100% working interest in the well(79.16% net) reverting to a
74.6% working interest (59.1%) at payout of all costs incurred to
date. At the conclusion of the deep test the rig will drill a
shallow Wilcox test-The Spring Hill #8--an east offset to the
Company's #7 well completed in April 2011 for 70 BOPD. The
Company's common shares are listed on the TSX Venture Exchange,
Vancouver, B.C. trading symbol "KFG". The TSX Venture Exchange has
not reviewed and does not accept responsibility for the adequacy or
accuracy of this release. Mr. Robert A. Kadane, President of KFG
Resources Ltd, +1-303-825-7080
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