News: Barnum well producing at 140bopd, Craig 4 to be drilled shortly
KFG's operating profit at $460,581 in Q1 2015
2014-10-01 12:27 MT - News Release
Mr. Robert Kadane reports
KFG REPORTS OPERATING PROFIT FOR FISCAL 1ST QUARTER ENDING JULY 31, 2014
KFG Resources Ltd.'s wholly owned subsidiary, KFG Petroleum Corp. of Natchez, Miss., had net income of $460,581 for the company's fiscal first quarter ending July 31, 2014, compared with $113,525 in the corresponding quarter in 2013. Gross revenue for the quarter was $904,409, as compared with $582,176 in the fiscal first quarter of 2013. The company had cash on hand of $1,133,429 and a current ratio of 2.1 to 1. There was no long-term debt.
Adams county, Mississippi
Operationally, the company's Barnum No. 2 well in the Mantua field reported initial production of 40 barrels of oil per day in mid-September. After two weeks of production, the well is now producing 140 bopd from the original perforations at 6,398 feet in the Parker sand. The well has several potential zones behind pipe. Field development will begin in the first quarter of 2015 after extensive production testing. The company's working interest in the well is 9 per cent, jumping to 20.5 per cent at payout. Additionally, the Craig No. 4 well has been staked as a southwest offset to the Craig No. 3 well in the LaGrange field currently producing 50 bopd. The company's working interest in the Craig No. 4 is 10 per cent, jumping to 21.5 per cent at payout.
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