KFG Resources completes Drouet Poole Estate No. 1 well
2015-11-05 10:05 MT - News Release
Mr. Robert Kadane reports
KFG COMPLETES DROUET POOL ESTATE #1 WELL
KFG Resources Ltd.'s subsidiary, KFG Petroleum Corp., and its partners have completed the Drouet Poole Estate No. 1 well, Franklin County, Mississippi, pumping 60 barrels of oil per day and 30 barrels of water a day. The company and partners drilled the No. 2 Poole Estate well as a north offset to the No. 1 and abandoned it last week. KFG owns a 12-per-cent working interest in the well, investing to a 24-per-cent working interest after the No. 1 and the dryhole costs of the No. 2 well are recovered. Future development will depend on how production volume holds up in the No. 1 well.
The Stockfelt No. 1 and the Barnum No. 4 well are in various stages of completion.
In Wilbarger County, Texas, the company has participated in its first exploratory well in the area with a private oil company acting as operator. The company has a 14-per-cent working interest in a 400-acre lease on the Waggoner Ranch and participated in a 2000 Dyson sand test completed as a dry hole. Further evaluation awaits remapping of the area. A second shallow test is scheduled on its Griffin lease several miles away before year's end. Going forward, the company's interest will vary depending on the project.
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Not a bad update overall. Drouet 2 as a dry well isn't a big loss as they could technically convert it into a salt water well and not only bring up production on Drouet 1, but lower costs on production as well. Stockfelt and Barnum has good oil showings so they should be producers. Texas was the only real disappointment, but the well cost less than $200,000 to do and kfg has 14%, no big loss for a test well. KFG is still producing slightly over 100bopd daily with an operating cost of less than $20 a barrel and getting paid on all 30 producing wells for monthly maintenance as a second revenue stream.
