Trading Symbol: KFG
TSX Venture Exchange
NATCHEZ, MS, June 4 /CNW/ - KFG Resources Ltd. (the "Company") President
Robert A. Kadane is pleased to announced that the Company has made a new oil
discovery at the Fayette Field, Jefferson County, Mississippi.
The Company's "Spring Hill No. 1" well was drilled to a total depth of
5,500 ft. and encountered two Wilcox oil sands: the "Stewart A" Sand (3870 ft.
- 3880 ft.) and the "4600" Sand (3941 ft. - 3949 ft.). Production casing was
set to 4,100 ft. and the well will be completed in the Stewart A Sand. A
completion attempt will be made and if successful, oil sales are anticipated
to begin in late June 2009.
The Company drilled a 4,100 ft. Wilcox test at a location one mile west
of the Spring Hill No. 1 well, the "Wagner No. 1", and abandoned it as a dry
hole. It had 7 ft. of oil show in the "Stewart B" Sand, and the geology and
seismic is being reviewed to determine whether or not there is an offset
Finally, the Company is spudding a third shallow Wilcox test, the "Spring
Meadow No. 1". It is anticipated the results of that test will be available
The Company has a 100% working interest (a 70.16% net interest) in all
three wells, reverting to a 74.9% working interest (59.2% net interest) at
payout of all seismic, acreage, drilling, completion, taxes, and operational
The Company's common shares are listed on the TSX Venture Exchange, under
the trading symbol "KFG". For additional information, please contact Mr.
Robert A. Kadane, President, at (303) 825-7080.
"James F. Gilbert"
James F. Gilbert, Secretary
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
This press release contains "forward-looking information" that is based
on the Company's current expectations, estimates, forecasts and projections.
This forward-looking information includes, among other things, statements with
respect to the Company's plans, outlook, business strategy and exploration and
development of the Company's properties. The words "may", "would", "could",
"should", "will", "likely", "expect," "anticipate," "intend", "estimate",
"plan", "forecast", "project" and "believe" or other similar words and phrases
are intended to identify forward-looking information.
Forward-looking information is subject to known and unknown risks,
uncertainties and other factors that may cause the Company's actual results,
level of activity, performance or achievements to be materially different from
those expressed or implied by such forward-looking information. Such factors
include, but are not limited to: the ability to raise sufficient capital to
fund exploration and development; the quantity of and future net revenues from
the Company's reserves; oil and natural gas production levels; commodity
prices, foreign currency exchange rates and interest rates; capital
expenditure programs and other expenditures; supply and demand for oil and
natural gas; schedules and timing of certain projects and the Company's
strategy for growth; competitive conditions; the Company's future operating
and financial results; and treatment under governmental and other regulatory
regimes and tax, environmental and other laws.
This list is not exhaustive of the factors that may affect our
forward-looking information. These and other factors should be considered
carefully and readers should not place undue reliance on such forward-looking
information. The Company disclaims any intention or obligation to update or
revise forward-looking information, whether as a result of new information,
future events or otherwise.
For further information:
For further information: Mr. Robert A. Kadane, President, (303)