NATCHEZ, Miss., May 14 /CNW/ -- KFG Resources President, Robert A.
Kadane, announced that the Company's subsidiary, KFG Petroleum Corporation,
Natchez, Mississippi, has staked three locations in the Fayette Field,
Jefferson County, Mississippi, and is in the process of permitting three
shallow Wilcox tests (4,000 feet to 5,500 feet) based on results of the 3-D
seismic survey conducted in 2008. "It is the Company's intention to develop
the field's shallow oil and gas reserves as Phase I of the redevelopment of
the Fayette Field." At this writing, a deep well (a 9,800-foot Lower
Tuscaloosa test) is planned for the last quarter of 2009.
KFG has assembled a block of approximately 4,100 acres. The Company has
farmed out all working interests in the field area in all undeveloped acreage
and owns a 79.1666% net revenue interest until all cost of seismic, land, and
drilling have been recovered. At that point, KFG's working interest will
revert to a 74.9% and its net revenue interest will be 59.3%. The timing of
the conversion will be based on the success of the drilling efforts.
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