Concordia Parish, Louisiana
NATCHEZ, Miss., June 29, 2011 /CNW/ -- KFG Resources President Robert A. Kadane reported that KFG's wholly-owned subsidiary, KFG Petroleum Corporation, is moving in to drill the Roundtree Nos. #1 and #2: two 6000' Wilcox oil tests on a 1500 acre lease in Concordia Parish, Louisiana. The Company will retain a 12.5% working interest in the project and back in after payout for an additional 20% working interest. All producing zones in the Wilcox interval will be evaluated.
Fayette Field, Jefferson County, Mississippi
When the Roundtree #1 and #2 wells have been evaluated the rig will move to the Fayette Field to drill two wells: the Spring Hill #8 to 4100' and the Spring Hill LT #1 to 10,000'. The Spring Hill #8 is an east offset to the #7 well and will further evaluate the new zone--the Stewart A A1 sand in the #7 well which was put on production on April 30,2011 for 70 BOPD. The Spring Hill LT#1 will test a 3D seismic feature in the Lower Tuscaloosa formation at 10,000'. KFG holds a 100% working interest(79.16% net) until payout of all costs incurred to date in the field. If both wells are successful expenditures are expected to exceed $1,100,000US.
At payout the Company's interest in the field reverts to a 74.6% working interest(59.1% net).
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 of KFG Resources Ltd, +1-303-825-7080