Operations Update: Fayette Field, Jefferson County, Mississippi and Louisiana
October 23 2011 - 7:59PM
PR Newswire (Canada)
NATCHEZ, Miss., Oct. 27, 2011 /CNW/ -- Fayette Field, Jefferson
County, Mississippi (Natchez, Ms) KFG Resources President, Robert
A. Kadane, reported that KFG's wholly-owned subsidiary, KFG
Petroleum Corporation, has staked location to drill a 6000' Wilcox
test , in a new area of the Fayette Field about two miles southwest
of Spring Hill, during November 2011. Total production from Fayette
is averaging about 130 BOPD, and the Company is receiving a premium
over New York spot for sweet crude of $20 to $25 per
barrel......currently between $110 and $115 per barrel. After the
seismic has been reinterpreted with the data from the Spring Hill
LT#1 dry hole a decision will be made next year about a second deep
test. The Company retains a 100% working interest in the Fayette
wells until payout of all costs(about $1,000,000 US remains to be
recovered). Louisiana Two 6000' Wilcox tests are planned on the
Roundtree acreage in Concordia Parish before yearend where the
Company's 12.5% working interest will increase to 29.375 % after
payout of the costs of drilling, completing, and operating the
wells. When a salt water disposal well has been approved the
Roundtree #1 well should be capable of sustainable production of 50
BOPD. Also, the Company is working in several new areas of
Louisiana compiling acreage for additional exploration projects for
calendar 2012. In closing, the Company has over $700,000 in cash
after the deep dry hole, no debt, and free cash flow in the
neighborhood of $200,000 US per month or annualized for $2,400,000
annually. The Company does not anticipate any problem meeting all
of its financial requirements for the coming year. KFG Resources
CONTACT: Robert A. Kadane, President of KFG Resources ,
+1-303-825-7080Web Site: http://www.kfgresources.com
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