NATCHEZ, Miss., Oct. 24, 2012 /CNW/ - Mr. Robert A. Kadane, President of KFG Resources Ltd, reported today that the Company's subsidiary, KFG Petroleum Corporation of Natchez, MS has recompleted the Spring Hill #1 well, at Fayette Field, Jefferson County, Mississippi.
The well was recompleted flowing and pumping 120 barrels of oil through a 10/64" choke. The pumping unit has been modified and the well will be produced at a rate of 55 BOPD for several weeks before gradually increasing the rate. The Smith #26-2 well, drilled in September 2012, has been perforated in the shallow Stewart "B" Sand and is currently on a pump test – results will be reported whenever production stabilizes.
A shallow wildcat was drilled to 4200' south of Spring Hill, the Smith #10-1, and was completed as a dry hole, although it had excellent oil shows. Another well will probably be drilled in the vicinity in the Spring of 2013. KFG owns a 100% working interest in these wells, reverting after payout to a 74.9% working interest. On a final note, reprocessing of the 3D survey with all of the new data will be completed within the next 30 days and will help determine KFG's future development program at Fayette.
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