NATCHEZ, Miss., May 6, 2016 /CNW/ -- KFG Resources Ltd President,
Robert A. Kadane, announced today
that KFG's subsidiary, KFG Petroleum Corporation of Natchez, MS will restart its drilling program
in Mississippi and Texas this summer, assuming oil prices
stabilize around $40/bbl.
It is anticipated that the Stockfeldt well will be completed and
two projects drilled in Mississippi as well as two projects in
Texas. KFG will retain a 12% to
15% working interest in the projects.
The Company's 4th quarter, ending April 30, 2016, saw the lowest oil prices of the
year ($27- $28/bbl); however,
currently prices have rebounded to the mid $40's/bbl. Also,
production was shut-in on the Company's two MacNeil wells, in
Adams County, Mississippi, because
of high water making it impossible to sell the oil. During the
quarter the Company's Dale Lease in
Concordia Parish, Louisiana was
sold eliminating substantial monthly operating expenses versus
minimal income.
Also, the Company is pumping a well and salt water well in
Wilkinson County, Mississippi,
where it doesn't own an interest but will collect an overhead fee
going forward, operating the wells for other individuals. As a
final note, company overhead is being looked at with an eye toward
reducing costs.
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 accuracy of this
release.
SOURCE KFG Resources Ltd