KRFG King Resources Inc (PK)

King (OTC:KING) is engaged in the exploration for oil and gas worldwide. King's management believes that the best way to build shareholder value is through serious exploration conducted by a qualified and experienced team which has unquestioned ability to find and produce oil and gas in conjunction with managing financial affairs properly. King has acquired a 100% working interest in approximately 2,700 acres in the Fayette Field, Jefferson County, Mississippi, where the company plans to begin drilling the first of a 10 well development program by August 1, 2006, subject to rig availability. The initial well to be drilled is on the same structure with a Humble (Exxon) well which produced over 630,000 barrels of oil and 2.5 billion cubic feet of gas. Proven undeveloped reserves are estimated at 22 bcf of gas and 440,000 barrels of oil valued at seventy million dollars, discounted at 10%. Probable and possible reserves will be determined after a 30 square mile 3D seismic survey is completed the third quarter of this year. The second well will not be drilled until the 3D survey is interpreted. There should be numerous pay zones on this structure ranging from 3,000 to 20,000 feet, which have not been mapped previously because of poor seismic data quality. King has entered into a Joint Venture agreement under which it acquired a 50% interest with Carpathian Energy Companie Petroliera, SRL, in the Calinesti Field, in the Alexandria block, 100 kilometers southwest of Bucharest, Romania. The block covers 475 square kilometers, and is south of the Hirlestti field complex and surrounds the Ninciulesti and Buzescu gas fields. A 10 well drilling program will commence when the company's drilling rig, which is being shipped from the port of New Orleans by August 1, 2006, arrives in Romania. The proved reserves on this structure are 24 bcf of gas, with probable and possible reserves of 46 bcf of gas. The company has the right to several other redevelopment opportunities in Romania. For numerous reasons, exploration in the country has been neglected since World War II. King also announced that it intends to raise five to eight million dollars by sale of its common stock and warrants to certain institutional and accredited private investors. The net proceeds are expected to be used in establishing a presence in the Gulf of Mexico, Texas, Louisiana, Mississippi and Romania. King is also reviewing exploratory opportunities overseas in Australia, Turkey and Nigeria. The company's executive officers have extensive experience in the energy industry. D. James Fajack was recently appointed Chief Executive Officer and Chief Financial Officer. Mr. Fajack has served as CFO and as a director for several oil and gas companies that have been listed on major exchanges, including the NYSE. C. Douglas Smith has been appointed Vice President for Exploration and Production for the company. Mr. Smith was responsible for geophysics in the North Sea for Mobil Oil. Mr. Smith also evaluated and executed exploration and production opportunities for Mobil, including the North Sea and Egypt. Mr. Smith served as Vice President for Exploration and Production for Centex Oil & Gas Inc, a subsidiary of Centex Corporation (NYSE). Centex Oil & Gas revenues in the fourth year of operations were approximately $80 million per year and the company was ultimately spun off to Centex Corp shareholders as Cenergy onto the NYSE. King is negotiating to hire additional personnel. In the interim, consultants will be used whenever possible. King also announced that it will implement a one-for-two reverse stock split, resulting in approximately 74,219,902 shares outstanding after the reverse split, the acquisitions mentioned above, and debt reduction, currently with a public float of approximately 14,170,000 shares. Pursuant to the reverse split, each holder of company common stock will receive one share of common stock for each two shares of common stock held. Shareholders can contact King's Transfer Agent, PacWest Transfer, at 540-675-3129, regarding their certificates. King has relocated from Gulfport, Mississippi to Austin, Texas after Hurricane Katrina destroyed its offices. King's 170,000 miles of seismic data and approximately 1,000 well files were stored in a separate building and are undamaged. These records are being shipped to the Austin office. Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Except for historical information, the forward-looking matters discussed in this news release are subject to certain risks and uncertainties which could cause the Company's actual results and financial condition to differ materially from those anticipated by the forward-looking statements including, but not limited to, the Company's liquidity and the ability to obtain financing, the timing of regulatory approvals, uncertainties related to corporate partners or third-parties, product liability, the dependence on third parties for manufacturing and marketing, patent risk, copyright risk, competition, and the early stage of products being marketed or under development, as well as other risks indicated from time to time in the Company's filings with the Securities and Exchange Commission. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events. King Resources can be contacted by calling Foster Hagen of Investor Relations at 512-334-6500, or Investor Relations at investorrelations@kingresources.net, or www.kingresources.net