NATCHEZ, Miss., Nov. 3, 2016 /CNW/ -- KFG Resources Ltd., President, Robert A. Kadane, stated that its subsidiary, KFG Petroleum Corporation, Natchez, MS, is in the process of attempting to fund its drilling and development program. The current environment is extremely difficult and it may be the first quarter of 2017 before sufficient drilling funds have been raised to protect the Company's cash position.
The Company has one, possibility two, development wells to drill in Mississippi, but currently, partners and mineral interest owners don't want to drill and sell the oil at current prices, but will be agreeable in the $60/bbl range. The Company has assembled two wildcat acreage blocks in Mississippi, but to date, the Company hasn't been able to raise enough capital to justify the dry hole risk involved. The fact that most operators only have yearend budgets and can't project reliable cash flow in the near future, because of fluctuating oil prices, makes planning difficult but KFG is pursuing all leads.
KFG would like to acknowledge our new director, Giacomo Grassi, for the work he has done on the Company's new website at kfgresourcesltd.ca.
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 Ltd.
For further information: Robert A. Kadane, President, (940) 723/7052, http://www.kfgresources.com