NATCHEZ, Miss., June 6, 2012 /CNW/ - Fayette Field, Jefferson County,
Current production from the Fayette Field is approximately 100 BOPD from
six producing wells. A new and experimental production enhancement
technique was recently performed on the Spring Hill #1 well. Four
laterals were drilled into the 4600' Sand using coiled tubing and water
under high pressure. There was a modest improvement in production to
approximately 10 BOPD from this zone. We continue to monitor this well
and will decide in the coming months if results justify further
attempts in the 4600' Sand, which is present in many other wells in the
area. Meanwhile the Stewart A Sand remains behind pipe in the Spring
Hill #1 well.
The Spring Hill #7 is back on production after it was repaired and is
currently producing between 8 and 10 BOPD. The Spring Hill #9 well was
drilled at the extreme south end of the Spring Hill feature and was
plugged and abandoned as a dry hole. The 26-1 well drilled 2 miles
south of Spring Hill is currently averaging 15 BOPD. As previously
stated the 3D Seismic is being reprocessed and KFG will drill two
obligation wells based on the new survey in the fall of 2012.
Concordia Parish, Louisiana
The Roundtree #1 well finally received all permits for salt water
disposal and was put on production----- currently producing about 25
BOPD. The recently drilled Roundtree 1A is currently being completed. A
salt water disposal well will also be required for this well. The
permitting process will start as soon as it is determined there is a
sufficient oil cut for commercial production. KFG owns a 12.5% working
interest in the Roundtree wells which will increase to 29.375% working
interest at payout.
KFG has assembled three(3) new lease blocks---two(2) in Concordia
Parish, Louisiana and one(1) in Adams County, Mississippi. The plan is
to drill test wells on these prospects this summer and early fall of
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:
Mr. Robert A. Kadane, President, +1-303-825-7080