NATCHEZ, Miss., June 6, 2013 /CNW/ -
Adams County, Mississippi
Robert A. Kadane, President of KFG Resources Ltd., reported today that the Company's subsidiary, KFG Petroleum Corporation, of Natchez, Mississippi, has staked a location in the Carthage Point Field. The MacNeil #3, a 660-foot north offset to the MacNeil #2, the Company's new field in the Stewart "B" Sand. The well will be drilled in late June to 6,300' as soon as Mississippi River water recedes. The Company has an 8% working interest in the well reverting to a 20% working interest at payout.
In the LaGrange Field, the Company has completed an acreage block in preparation for a 6,600' test this summer to evaluate three Wilcox Sands that produce offsetting the lease. Details will be announced before the spud date. Also in the LaGrange, KFG is operating and participating for a 10% working interest in a directional hole to 6,400' offsetting a new discovery in the Wilson Sand flowing 80 BOPD, water free.
Franklin County, Mississippi
Several areas are being leased at present. It is anticipated that all of the prospects will be completed and drilled by late fall 2013.
Jefferson County, Mississippi
At Fayette, the Company plans to drill a 4,200-foot Stewart "B" test during the summer of 2013. The Company's working interest is 74.9%. If successful, there will be several offsets. Also, the reprocessed 3D survey has highlighted another Lower Tuscaloosa anomaly at 10,000'; and, the Company is considering taking on a partner to test the new interpretation.
Amite County, Mississippi
The Company is going to operate and participate in a test well to 11,300' for a 5% working interest. The prospect offsets a CO2 flood operated by Denbury Onshore, LLC. The closest well in the flood is producing over 100 BOPD and is 1,900' away. Details will be available prior to spud date.
Warren County, Mississippi
The Company anticipates operating and re-entering a prior well to 11,400' to test an excellent oil show in the Rhodessa Sand in the fall of 2013. Again, details will be available prior to spud date.
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 (303) 825-7080