KFG Resources Ltd. (KFG)

[JonnyRBuck12]

KFG to drill 7,200-foot wildcat well in Mississippi

2017-10-19 07:41 MT - News Release

Mr. Robert Kadane reports

KFG TO DRILL 7200' WILDCAT WELL, ADAMS COUNTY, MS

KFG Resources Ltd.'s subsidiary, KFG Petroleum Corp. (Natchez, Miss.), is set to drill a 7,200-foot wildcat well in Adams county, Mississippi, testing several Wicox sands that have produced in the immediate area. The Hogue Estate No. 1 well is located in Adams county, Mississippi, on a 300-acre lease burdened with a 25-per-cent royalty, leaving the company with a 75-per-cent net revenue interest. KFG has taken on partners, will have no exposure in the drilling of the well to total depth, and will recover approximately $10,000 from reimbursement for the leases plus a $10,000 overhead charge. If productive, the company will back in after payout for a 12-per-cent working interest with no outlay of completion expenses.

In addition, the company closed the purchase, effective Oct. 1, 2017, of a 1-per-cent working interest in several of its operated wells in Mississippi, which will have an immediate impact on cash flow.

© 2017 Canjex Publishing Ltd. All rights reserved.