KFG Runs Production Casing on Spring Hill No. 2 Well


    NATCHEZ, Miss., Aug. 26 /CNW/ -- KFG Resources President, Robert A.
Kadane, reported that KFG Resources Ltd.'s wholly-owned subsidiary, KFG
Petroleum Corporation, has drilled to completion and is running production
casing on its Spring Hill No. 2 well in the Fayette Field, Jefferson County,

    An east offset to the Company's Spring Hill No. 1 well, the Spring Hill
No. 2 well, encountered nine feet of 4,600-foot oil sand from 3,942 feet to
3,951 feet and, if successfully completed, will go on production in early
September 2009.  The Company's Spring Hill No. 1 well went on production in
late July, 2009, and is presently producing at a stabilized rate of 50 barrels
of oil per day.  The Company's Spring Hill No. 4, a north offset to the No. 1
well, was completed a dry hole.  Casing has been set in this well to 3,300
feet for conversion to a salt water disposal well.

    KFG has approximately 4,100 acres of leases in the area and owns a 100%
working interest (79.16% net revenue interest) in the Spring Hill No. 2 well,
reverting to a 74.9% working interest (59.4%  revenue interest) after payout
of all drilling, seismic, land, exploration, development, taxes, and operating

    The Company's common shares are listed on the TSX Venture Exchange,
Vancouver, B.C., trading symbol "KFG".  For additional information, please
contact Mr. Kadane at (303) 825-7080.

    The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.


For further information:

For further information: Mr. Robert A. Kadane, President of KFG
Resources Ltd., +1-303-825-7080 Web Site: http://www.kfgresources.com

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KFG Resources Ltd.

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