NATCHEZ, Miss., March 20, 2013 /CNW/ -
OPERATIONS UPDATE
Mississippi
Mr. Robert A. Kadane, President
of KFG Resources Ltd., reported today that the Company's
subsidiary, KFG Petroleum Corporation, of Natchez, Mississippi, has reopened production
in the Stewart "B" Sand in the Carthage Point Field, Adams County, Mississippi. The KFG MacNeil #2
well encountered 12 feet of Stewart "B" Sand at 4390 feet. Casing
was set and the well was completed flowing 70 BOPD, 10% water,
flowing tubing pressure 430#. KFG has an 8% working interest
reverting to a 20% working interest after payout. A north offset
will be drilled within the next 90 days.
At Fayette, the #26-2 well has
been completed for 6 BOPD. Fayette
has reached payout; consequently, KFG's working interest reverted
from 100% to 74.9%. Additional shallow wells will be drilled later
in 2013.
Louisiana
At the Clayton Field, Concordia
Parish, Louisiana, the #1 Miller has started production in
the E-2 Sand at a rate of 25 BOPD. KFG has a 5% working interest
before payout and an 18% working interest after payout.
In addition, the Company is assembling acreage in Louisiana and Mississippi for an active drilling program in
the summer and fall of 2013, as well as continued development 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.