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
For further information: Robert A. Kadane, (303) 825-7081