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.