Production Casing Set In Smith 26-2 Well At Fayette

NATCHEZ, Miss., Sept. 18, 2012 /CNW/ - Mr. Robert A. Kadane, President of KFG Resources Ltd, reported today that the Company's subsidiary, KFG Petroleum Corporation of Natchez, MS, has run production casing in its Smith 26-2 Well to 4200' for a completion attempt. The well logged and cored three(3) oil sands... ....the 4600'sand(13'), the Stewart A Sand(5') and the Stewart B Sand(5'). The well will be perforated and tested and results should be available in two to three weeks. The rig is moving on location to drill a wildcat south of Spring Hill, the Smith 10-1, to 4200', then to a new project in Adams County, Mississippi in the Carthage Point Field.

KFG owns a 100% working interest in the Smith 26-2 and the Smith 10-1 until payout reverting to a 74.9% working interest after payout.

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.

SOURCE: KFG Resources

For further information:

Mr. Robert A. Kadane, President +1-303-825-7080

http://www.kfgresources.com

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KFG Resources

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