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Looked at two main Mississippi oil sites today and saw that KFG's Craig 4 well and Seale(Franklin wild cat) are licensed and ready to drill whenever the company is ready.
http://gis.ogb.state.ms.us/MSOGBOnline/
The second thing was trying to see how well KFG is performing compared to it's peer in Mississippi and Louisiana. But DrillingEdge is only upto date until June. Also keep in mind that this is total combined production of KFG and it's partners, which doesn't include Craig 3 or Barnum.
http://www.drillingedge.com/mississippi
Breakdown of areas and where KFG ranks in terms of production as of June.
Jefferson County --> KFG was the main producer in this county
http://www.drillingedge.com/mississippi/jefferson-county
Adams County --> KFG was the second main producer in this county
http://www.drillingedge.com/mississippi/adams-county
Lincoln County---> KFG was the second main producer in this county
http://www.drillingedge.com/mississippi/lincoln-county
Warrn County--->KFG isn't very active here, only one small well in this county
http://www.drillingedge.com/mississippi/warren-county
Grand total for Mississippi is 18 wells in production with 12,185 barrels produced.
12,185(barrels) / 30(days) = 406bopd.
http://www.drillingedge.com/mississippi/operators/kfg-petroleum-corporation/31500
Then the company has a few wells in Louisiana. For whatever reason though, I can't find the breakdown of where these are on this website.
http://www.drillingedge.com/louisiana/operators/kfg-petroleum-corporation/2944
Shows 3 wells with a total production of 732bopd. KFG showed 22 in the Q1 results because it included Dale, which was shutdown in this quarter as mentioned in the MD&A. Now Dale is back up and Craig 3 and Barnum 2 are producing, so total count will be 24 wells for Q2 2014.
732(barrels) / 30(days) = 24bopd
Now there are some investors wondering what will happen with the recent drop in oil prices. Well KFG is covered. One of the few articles I was able to find about Louisiana Light Sweet crude, but it has upto date recent pricing which is important since KFG sells it's oil at these prices. Like I mentioned in previous posts, my estimated average selling price for KFG in Q2 will be around $95. LLS has been trading closer to brent prices over the last couple months rather than WTI. One of KFG's many advantages in this tough oil market. Just this week the price hit a low of $90.58, so KFG is still getting $90 a barrel and with $30 cost per barrel, very profitable still. Unlike Western Canadian select, it hit a low of $74.46.
http://www.petroleumnews.com/pntruncate/501597498.shtml
At the bottom of this article
Louisiana Light Sweet, a Gulf Coast benchmark which has recently been trading near par with Brent, settled at $96.29 on Oct. 2, but by Oct. 8 it had fallen nearly $6 settling at $90.58 according to CME Group information provided by Argus. Western Canadian Select, another North American benchmark, settled at $77.86 on Oct. 2, but by Oct. 8 it too had fallen settling at $74.46.
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.
© 2014 Canjex Publishing Ltd. All rights reserved.
KFG Earns $461,100US in Q1 2014, $0.01c eps
KFG Resources Ltd. Financial and MD&A Highlights for Q1 2014 Ending July 31
(Expressed in US Dollars)
Price: $0.10
Shares Outstanding: 50,584,144 with no options or warrants
Cash: $1,133,429
Accounts Receivables: $1,032,148
Prepaid Expenses: $22,922
Reclamation Bond: $20,000
Property & Equipment: $1,432,033
Total Assets: $3,640,532
Total Liabilities: $1,042,248 (All payables)
Revenue
Oil and gas: $788,143
Management Fees $116,266
Total Revenue: $904,409
Total Expenses: $444,015
Net Income: $460,100
Basic and diluted income per common share: $0.01
Now we will move onto the MD&A. Keep in mind the following:
1) 4 main wells paid out mid Q1, so only half of that new revenue was added to this quarter
2) Craig 3 was put online end of Q1, no revenue from that
3) Barnum wasn't online until mid Q2
This is why the well count only shows 21. With Craig 3 and Barnum we are at 23. Not sure why it isn't 24, maybe one well was down this quarter. Either way, the above translates to a much bigger revenue/profit for Q2 and with several wells to go it will only increase. $0.04-0.05c eps for 2014 is very realistic at this point. Even at a lower range 10 times earnings price, KFG would be at $0.40-0.50c minimum by next fall. Doesn't include additional revenue and new discoveries either.
MD&A
Overall Performance
For the three months ended July 31, 2014, the Company had cash flow from oil and gas production of $788,143, compared to $519,526 for the three months ended July 31, 2013. Oil production decreased from 86.15 BOPD to 75.07 BOPD, and gas production decreased 3.86 MCF per day. The average price of gas increased $0.87 per MCF and the average price of crude oil decreased $11.43 per bbl when comparing the three months ended July 31, 2014 and July 31, 2013.
Overall the Company has recovered from giving up 25% of its interested in the Fayette Field wells at payout. Currently, with the MacNeil wells and Craig wells at payout, revenues are on a growth pattern again. The Company was able to grow just utilizing cash flow. Several new projects are in the pipeline and the Craig #3 well will payout in the next few months increasing that revenue stream. KFG will have no problems financing growth through its internal cash flow throughout the remainder of its fiscal year ending April 30, 2015. In addition, the Barnum #2 well is on production as of mid September 2014. The Craig #4 will be drilled in mid October 2014.
The Company reported net income of $460,100 for the three months ended July 31, 2014 compared to net income of $113,525 for the three months ended July 31, 2013, with the increase in net income a result of less operating expenses plus better prices for oil and new oil from the Craig and McNeil bases due to increased working interest in the wells.
The quarter ended July 31, 2014 reflected the production of the Craig #2 well as well as payout of the Craig #1 and #2 wells increasing KFG’s working interest from 10% to 21.5% and late in the quarter the MacNeil #1 and #2 paid out increasing the working interest in those wells from 8% to 20.5%.
Production at Fayette is stable and has started a slow decline. With the Dale lease back on production and new production coming off the Craig and Parker leases, KFG will have adequate internal cash flow to develop existing leases as well as support several new prospects in the coming months. Unless the price of oil collapses, the Company will generate sufficient capital to fund its requirements throughout 2014 internally.
LEVEL 2 QUOTE
Market Maker Shares Bid Price Ask Price Shares Market Maker
105,000 0.085 0.100 5,500
25,000 0.080 0.105 10,000
50,000 0.075 0.110 19,500
5,000 0.070 0.115 15,000
40,000 0.055 0.120 60,000
10,000 0.035 0.135 50,000
100,000 0.020 0.140 20,000
264,000 0.015 0.150 50,000
200,000 0.010 0.180 11,000
300,000 0.005 0.200 212,000
2 weeks left to go until Q1 results are out. Given the new payout structure that started mid Q1, profits should be growing every quarter from now on. Q2 will show the full impact of current rates around 160-170bopd and then Q3 will add the 3-4 new wells being drilled this fall, along with the payout of Craig 3 and Barnum 2.
KFG Resources starts completion work at Barnum
2014-09-11 07:36 MT - News Release
Mr. Robert Kadane reports
KFG FALL 2014 DRILLING SCHEDULE
KFG Resources Ltd.'s wholly owned subsidiary, KFG Petroleum Corp., of Natchez, Miss., has started completion operations on its Barnum well in Adams county, Mississippi.
Initial production rate from the Parker sand (a semi-depleted zone) is 40 barrels of oil per day.
KFG has three new projects ready to drill this fall -- two in Franklin county, Mississippi, and one in Adams county, Mississippi. If time permits, there will be additional drilling at Fayette field in Jefferson county, Mississippi.
The Craig No. 3 well, at the LaGrange field, has stabilized production at 50 barrels of oil per day. It is anticipated that a west offset will be drilled before year-end.
In all these wells, KFG has a 10-per-cent working interest, reverting to 21.5 per cent at payout.
© 2014 Canjex Publishing Ltd. All rights reserved.
Barnum now gives KFG 24 wells in production and a rate that's getting closer to 200bopd of light oil. With 3-4 lined up this fall, no doubt that it's an achievable target.
I was able to find the old Fayette page on KFG's website(link isn't attached anymore) and this shows that Fayette has a huge net back. Odds are that the Craig, Parker, Macneil and other leases are roughly the same as well. Even if LLS(Louisiana Light Sweet) was to drop to around $90 per barrel, KFG should still be getting close to a $60 net back. Like I said before, once Q1 and especially Q2 are out, this will change the revenue and profit direction of the company.
The other thing to keep in mind is the low decline rate of Fayette. Even thought KFG only has 75% interest now, production is still between 120-130bopd as per the Q3 results(Q4 doesn't specify). Sure two wells were added, but these are lower production and very low decline wells.
http://kfgresources.com/projects/p6faye.htm
As of December 1, 2011 the five Spring Hill wells produced stable production of approximately 110 BOPD. The Company owns 100% of the working interest (79.16% net) in the Spring Hill Nos. 1, 2, 5, 6 and 7 reverting to a 74.6% working interest (59.1% net) after payout of all costs of seismic, land, drilling, completion, taxes and operating expenses - currently about US $1,000,000. At a current price of $108 per barrel, the Company's net back after royalty, taxes and operating expenses is in excess of $75 per barrel. The No. 7 well opens up an additional offset to the south.
KFG NAV(Net Asset Value for 2013)
Total Assets: $3,017,302
Total Liabilities: $879,582
Oil Reserve Value: $ $8,599,000(No Discount)
$3,017,302(assets) - $879,582(liabilities) = $2,137,720(equity)
$2,137,720(equity) + $8,599,000(reserve value) = $10,736,720
$10,736,720(total assets) / 50,584,144(shares) = $0.2122 or $0.21c NAV
KFG has no warrants or options, therefore only common shares used. But this year KFG's NAV has already gone up given the 4 wells that paid out and the Craig 3 production + oil reservoir discovery.
**UPDATED PRODUCTION NUMBERS**
News Release - Name of Wells - Production
July 31 2014 - Craig 1,2,3 - 240bopd @ 21.5% and 10% = 41bopd
June 12 2014 - Macneil 2,3 - 60 - 70bopd @ 21.5% = 13 - 15bopd
June 12 2014 - Parker 1,2,3,4 - 130bopd @ 10% = 13bopd
April 1 2014(MD&A) - 9 Fayette wells - 120 - 130bopd @ 75% = 90 - 98bopd
Aug 28 2014(MD&A) - Dale well - 25bopd @ 18% = 4.5bopd - Put into production in April but numbers unknown until now
April 1 2014(website) - Roundtree - 15bopd @ 12.5% = 2bopd (29% at payout 2015)
April 1 2014(website) - Miller 1 - 15bopd @ 4% = 1bopd(18% at payout)
Wells Being worked on:
Barnum 2 - Salt water dispoal well being put in. Will be producing shortly
Seale(New area) - Approved by Mississippi, waiting to be drilled
Several other wells are to be drilled between now and year end. Q1 pay outs will only affect half of that quarter given the timing, but current production above will be fully implemented in Q2 since that started August 1st 2014.
Daily revenue estimated calculation using Brent pricing at only $100 per barrel
Macneil(13-15) + Parker(13) + Craig(41) + Fayette(90) + Roundtree(2) + Miller(1) + Dale(4.5) = 164.5 to 166.5 bopd. Lets calculate that with the lower number and LLS prices at $95 per barrel.
164.5bopd X $95 per barrel = $15,627 X 90 days(Q2) = $1.4 million in oil and gas revenue for Q2. Then add between $150,000 to $200,000 in management fees. Q1 will be good but Q2 will show the full impact of current production.
KFG Year End Results, Ending April 30th 2014
This will be the last year KFG produces at less than 100bopd. Given the new rates which started early June and new reservoir discovery over July, the company is easily producing at double the average for 2013. Q1 results will be out in exactly a month which will show a significant increase from last year's Q1 and Q4, then Q2 will be even higher given the payout times. Every quarter KFG should be increase in production from now on.
Price: $0.10
Shares Outstanding: 50,584,144
Insider Holdings: 10%
Options and warrants: 0
Financials
Assets
Cash: $1,205,750
Accounts Receivable: $577,215
Marketable Securities: $476
Prepaid Expenses: $14,486
Reclamation Bond: $20,000
Property and Equipment: $1,199,375
Total Assets: $3,017302
Liabilities
Accounts Payable: $700,604
Deposits from Co-owners: $178,978
Total Liabilities: $879,582
-Assets grew by $500,000 year over year. Then if you include the reserve growth and new potential, it's been a real transition of a year.
- The reason for the drop in oil revenues is very easy to explain. When KFG's main property paid out last year, the interest went from 100% to 75%. This loss was made up over 2013 but it took some time. Now of course we have exceeded it by quite a bit.
Revenue
(2013)Oil and gas: $2,240,754 (2012)$2,925,253
(2013)Management Fees: $419,014 (2012)$120,626
(2013)Expenses: $2,586,411 (2012)$2,961,875
(2013)Net Income: $67,467 (2012)$76,164
(2013)EPS: $0.0013c (2012)$0.0015c
Overall not bad given the circumstances over the year. Oil revenue was down quite a bit, but we picked up on the management side, going from 15 wells to 22 and now 24 in production with many more to do.
MD&A Highlights
Overall the Company has recovered from giving up 25% of its interested in the Fayette Field wells at payout. Currently, with the MacNeil wells and Craig wells at payout, revenues are on a growth pattern again. The Company was able to grow just utilizing cash flow. Several new projects are in the pipeline and the Craig #3 well will payout in the next few months increasing that revenue stream. KFG will have no problems financing growth through its internal cash flow throughout the remainder of its fiscal year ending April 30, 2015.
For the year ended April 30, 2014, the Company had cash flow from oil and gas production of $1,482,016, compared to $1,823,195 for the year ended April 30, 2013. Oil production decreased from 92.02 BOPD to 71.79 BOPD, and gas production
decreased 3 MCF per day. The average price increased $1.06 per MCF and the average price of crude oil decreased $3 per bbl when comparing the year ended April 30, 2014 to April 30, 2013.
Revenue from the sale of oil and gas was $2,240,754 for the year ended April 30, 2014, compared to $2,925,253 for the year ended April 30, 2013. The decrease in revenue is a result of lower prices and production primarily because oil revenues at Fayette were reduced by approximately 25% when the property paid out and triggered a revision of KFG’s interest from 100% to 74.9%.
Management fee revenue for the year ended April 30, 2014 was $419,014 as compared to $120,626 for the year ended April 30, 2013. The increase is a result of all of the wells drilled during the year. Overhead charges are for the drilling and completion of wells. Also, each new well incurred monthly overhead charges to operate the wells. KFG also received overhead charges on wells operated for other parties.
The Company reported a net income of $67,467 for the year ended April 30, 2014 compared to net income of $76,164 for the year ended April 30, 2013, with the decrease in net income a result of lower production rates during the year and an increase in general and administration expenses.
In April 2013, the Dale lease went off production just after the Fayette wells paid out – reducing the Company’s interest by 25% as a result production and prices fell. In August 2013, the MacNeil #3 helped get production back on track, but bad weather and price weakness hampered production. IN November 2013,, Craig #1 went on production and in February 2014, the Craig #2 went on production. But the Dale lease was still shut in. As of late March 2014, the Parker #4 went on production. The Dale lease went back on production in April 2014. Three events have occurred recently. The MacNeil #2 and #3 paid out and KFG’s interest went to 21.5% from 8% and the Craig #1 and #2 paid out and KFG’s interest went to 21.5% from 10%. And lastly, the Craig #3 was put on production (KFG’s interest is 10% until payout). The quarter ended April 30, 2014 benefited from all the field work as overhead income increased substantially.
Liquidity and Capital Resources
The Company’s main sources of liquidity are internally-generated cash flow from its oil and gas operations and access to equity capital markets. Because KFG’s internally-generated cash flow is presently sufficient to fund its overall operating expenses, the Company will not require continued additional funding in order to execute on its business strategy. The Company anticipates that public capital markets will serve as the principal source of capital to finance its future oil and gas activities and/or significant property purchases. Changes in the capital markets, including a decline in the prices of natural gas
and oil, could materially and adversely impact on KFG’s ability to complete further equity financings, with the result that the Company may be forced to scale back its operational activities.
Fourth Quarter
In February 2014, the Craig #2 well was put on production. Initial production was 80 BOPD throughout the quarter. In March 2014, the Parker #3 and Parker #4 were put on production producing a combined total of 100 BOPD. KFG has a 21.5% working interest in the Craig #2 well and a 10% working interest in the Parker wells. Also the Dale lease in Louisiana was put back on production for 25 BOPD. KFG’s interest in those wells averaged 18% at April 30, 2014. The Craig and Parker wells are in Adams Co., Mississippi.
Outlook
Production at Fayette is stable and has started a slow decline. With the Dale lease back on production and new production coming off the Craig and Parker leases, KFG will have adequate internal cash flow to develop existing leases as well as support several new prospects in the coming months. Unless the price of oil collapses, the Company will generate sufficient capital to fund its requirements throughout 2014 internally.
KFG 51-101 Ending April 30th 2014
Before reading, please keep in mind that these reserves have already increased substantially since the report was done. This is due to the Craig 1 & 2 wells, along with the Macneil 2 & 3 wells paying out early June. Interests went from 10% to 21.5% and that means additional reserves for the company. As well, during the summer KFG found a new reservoir drilling Craig 3 and will likely find some new reserves with Barnum, Seale and any other wells drilled between now and April 30th 2015.
The reserves below are split up between KFG and it's partners.
Light Oil
Proved Reserves - 381,400 *** 89,200 barrels NET to KFG
Probable Reserves - 231,600*** 64,400 barrels NET to KFG
Natural Gas
Proved Reserves - 35,200***3,300BOED NET to KFG
Total: 613,000***153,600 barrels NET to KFG and 3,300 boed of nat gas
NPV(Net Present Value) Before Tax - $8,599,000USD
Some recent articles about drilling in Mississippi. KFG has leases in these areas and with more success around us means land values will go up as well as additional
M&A in the area.
July 2014 - http://www.nola.com/business/index.ssf/2014/06/louisiana_mississippi_shale_dr.html
June 2014 - http://www.nola.com/business/index.ssf/2014/07/goodrich_petroleum_readies_to.html#incart_related_stories
February 2014 - http://bigstory.ap.org/article/shale-drilling-could-jump-2014-miss-la-0
There is another forum on KFG that is more upto date compared to this one. http://investorshub.advfn.com/boards/board.aspx?board_id=11279
KFG Level 2
LEVEL 2 QUOTE
Market Maker Shares Bid Price Ask Price Shares Market Maker
21,000 0.125 0.130 500
21,000 0.120 0.135 12,500
70,000 0.100 0.140 52,000
4,000 0.085 0.145 94,000
44,000 0.080 0.150 109,500
5,000 0.075 0.160 17,500
5,000 0.070 0.180 61,000
120,000 0.045 0.200 26,000
10,000 0.040 0.290 40,000
100,000 0.020 0.750 51,000
Your welcome. I agree, Rob Kadane is one of the best CEO's I've dealt with over the last four years and I think he will be rewarded nicely down the road.
Took quite some time to arrange everything in regards to the wells, partners, drilling, etc. But I strongly believe it paid off and we are in great shape right now. I don't see how this stock can lose other then the price of oil collapsing. We get paid on LLS(Louisiana Light Sweet) which is a crude oil that has a premium ontop of WTI and just under Brent.
Biggest issue now is getting the word out there that KFG is back in business and growing quickly, but that will come in time. A new promotional campaign will be ideal and we can afford that now given the roughly $500,000 per month cash flow.
I have no idea what Rob Kadane's end game plan is. I would think once we get to 400bopd+ that he might want to sell the company to some of the operators down there but who knows. Given his history of two companies sold in the past, this is the likely outcome. Just couldn't give you a time frame.
All I can say is that were finally on a growing streak right now and I have been watching KFG for several years. With all these new oil finds and the support of the farm-in partners paying pretty much all the costs on each well, we are in good hands. Just have to sit back and watch the production accumulate.
Right now were at 160-170bopd, I think after the Barnum well is completed and pays out, along with Craig 3 we will be doing 200bopd. I would guess year end(December) exit production rate to be around 230bopd since we have a couple more wells to drill between now and then.
Looking forward to year end results coming out in a few weeks. We should show another year end profit, higher revenues and our reserves should at least double given we went from 10 to 20 wells and 3 new producing zones.
KFG Resources completes Craig No. 3 well at LaGrange
2014-07-31 07:46 MT - News Release
Mr. Robert Kadane reports
KFG OPERATIONS UPDATE
At the LaGrange field in Adams county, KFG Resources Ltd.'s wholly owned subsidiary, KFG Petroleum Corp., along with its partners, has completed the Craig No. 3 well in the Second Wilcox formation at 4,375 feet. The well is currently pumping 90 barrels of oil per day with 15 barrels of water per day. KFG has a 10-per-cent working interest in the well, reverting to a 21.3-per-cent interest at payout. The well is in a separate reservoir from the Craig No. 1 and No. 2 wells and sets up an offset location. Total lease production is currently 240 barrels of oil per day.
At the Mantua field in Adams county, a saltwater disposal permit has been issued for the Barnum No. 2 well and completion operations have begun. KFG has a 9-per-cent working interest in the well, reverting to a 20.5-per-cent interest after payout.
© 2014 Canjex Publishing Ltd. All rights reserved.
Level 2
Orders/Shares Price Price Shares/Orders
1 / 7000 0.125 0.14 22500 / 1
1 / 8000 0.115 0.145 95500 / 3
2 / 33500 0.11 0.15 278500 / 7
3 / 70000 0.1 0.16 66500 / 2
1 / 4000 0.085 0.17 25000 / 1
2 / 44000 0.08 0.18 11000 / 1
1 / 5000 0.075 0.2 26000 / 2
2 / 8000 0.07 0.25 40000 / 1
1 / 6000 0.055 0.34 6000 / 1
0 / 120000 0.045 0.44 10000 / 1
Future wells for KFG and potential rates website:
This is a great website I found where you can get upto date information on wells and their production rates. How does this help us with KFG? Well we can see what future production
rates are possible with new wells. For example Franklin:
http://www.drillingedge.com/mississippi
Go to that link and scroll down to find area. Click on Franklin and it will show all active wells and the producers. Denbury seems to be always close to us so lets use their rates and wells.
Divide barrels produced by number of wells and then by 30 days in a month:
14787(barrels / 7(wells) / 30(days) = Average of around 70bopd
Operator Production Month Oil Prod (BBLS) Gas Prod (MCF) Active Wells
Black Jack Oil Co., Inc. March 2014 3,096 301 19
Cypress Operating, Inc March 2014 1,876 0 1
Denbury Onshore, LLC March 2014 14,787 0 7
Durango Operating LLC March 2014 1,198 0 7
Fortenbery Operating Co Inc March 2014 124 68 1
George Tarver Operating Co. March 2014 128 11 1
Kepco Operating Inc March 2014 971 0 4
Nevanen Energy Inc March 2014 527 240 2
Palmer Petroleum Inc. March 2014 543 14 1
R. W. Tyson Producing Co Inc March 2014 921 0 2
Ram Petroleum LLC March 2014 804 0 1
Stroud Petroleum, Inc March 2014 8,736 0 3
Sundown Energy LP March 2014 934 0 10
Threshold Dev. Co. March 2014 816 0 5
Sorry this was a mistake. The Franklin well does still have to be drilled, but the other wells are inactive and need to be reclaimed which still has to be applied for.
KFG has 3 new approved wells to drill.
I went back to look at any other previous wells KFG has applied for. Shortly after the company got approval for the Parker and Craig wells, KFG also applied for 3 other wells and ALL have been approved. Pretty sure these will all be the next wells in line to drill after Craig 3 and Barnum 2.
Pike County I've never even seen or heard about, so that's a totally new well and area as I have no idea the lease size or potential. Fayette is KFG's top area where we retain a 75% interest in all those wells. Then Franklin is also a new area with a 10% interest which changes to 16.5% after payout.
http://www.ogb.state.ms.us/decisions/2014%20Final%20Decisions/20140219.Docket%20Decision.pdf
Page 6
PIKE COUNTY
Petition of KFG Petroleum Corporation requesting the Board to approve an extension of inactive well status under Statewide Rule 28 for the Emmerich No.1 Well.
ORDER NO.85-2014 -DECISION Approved Affidavit
FAYETTE FIELD - Jefferson County
Petition of KFG Petroleum Corporation, requesting the board to approve an extension of inactive well status under Statewide Rule 28 for certain wells in the field.
ORDER NO.94-2014 - DECISION Approved Affidavit
On Page 7 as of June 18th 2014:
262-2014-D BOOKER BRANCH FIELD - Franklin County.
Petition of KFG Petroleum Corporation, requesting the Board to integrate all
interests in a 40-acre oil unit, situated in Section 20, Township 7 North, Range 3
East, to drill the Seale No. 1 Well, to a depth of 4,500' test Wilcox Formation and all
other formations and pools that may be encountered at a regular location.
Approved
http://www.ogb.state.ms.us/decisions/2014%20Final%20Decisions/20140618.Docket%20Decisions.pdf
KFG Franklin well approval
I just found the Mississippi website that takes all well applications and either approves/denies them. Shows that KFG's first Franklin well has been approved and will likely be announced in the next update once the drill rig is in place. So expectto see that soon. On Page 7 as of June 18th 2014:
262-2014-D BOOKER BRANCH FIELD - Franklin County.
Petition of KFG Petroleum Corporation, requesting the Board to integrate all
interests in a 40-acre oil unit, situated in Section 20, Township 7 North, Range 3
East, to drill the Seale No. 1 Well, to a depth of 4,500' test Wilcox Formation and all
other formations and pools that may be encountered at a regular location.
Approved
http://www.ogb.state.ms.us/decisions/2014%20Final%20Decisions/20140618.Docket%20Decisions.pdf
Level 2
Orders/Shares Price Price Shares/Orders
1 / 80000 0.125 0.135 50500 / 1
2 / 23000 0.12 0.14 24500 / 1
1 / 20000 0.115 0.145 176000 / 4
1 / 48500 0.11 0.15 215000 / 4
1 / 20000 0.105 0.17 25000 / 1
1 / 10000 0.1 0.18 11000 / 1
1 / 10000 0.095 0.25 40000 / 1
1 / 20000 0.09 0.3 57000 / 2
1 / 4000 0.085 0.34 6000 / 1
3 / 54000 0.08 0.44 10000 / 1
KFG Level 2:
Level 2
Orders/Shares Price Price Shares/Orders
3 / 65000 0.115 0.145 29000 / 2
3 / 92500 0.11 0.15 201500 / 4
1 / 10000 0.105 0.17 1000 / 1
4 / 60000 0.1 0.18 11000 / 1
2 / 30000 0.095 0.24 10000 / 0
3 / 45000 0.09 0.25 40000 / 0
1 / 4000 0.085 0.3 12000 / 0
2 / 44000 0.08 0.34 6000 / 0
2 / 10000 0.075 0.5 30000 / 0
0 / 14000 0.07 -- -- / --
It's been a long time since someone has posted on this board. Back in 2008, KFG was just getting started on the Fayette field. Well 6 years later and a couple dozen wells later, KFG has made some amazing progress. The company is now running all operations on cash flow and has more than enough funding to keep going. Books are immaculate with no debt whatsoever and the company is able to do almost a dozen wells a year without any dilution. If Denbury was interested in us before, now I think they will want KFG for sure. All wells are broken down below and updates can be found on the KFG website. As per the most recent quarterly report and news releases:
50.6 million shares outstanding with around 10% insider holdings
June 12 2014 - Macneil 2 & 3 - 60 - 70bopd @ 21.5% = 13 - 15bopd
June 12 2014 - Parker 1,2,3,4 - 130bopd @ 10% = 13bopd
June 12 2014 - Craig 1 & 2 - 120bopd @ 21.5% = 26bopd
April 1 2014(MD&A) - 9 Fayette wells - 120 - 130bopd @ 75% = 90 - 98bopd
April 1 2014(MD&A) - Dale well - Put back on end of Q3, production unknown
April 1 2014(website) - Roundtree - 15bopd @ 12.5% = 2bopd (29% at payout 2015)
April 1 2014(website) - Miller 1 - 15bopd @ 4% = 1bopd(18% at payout)
Wells Being worked on:
Hannah - Still to be completed
Parker 5 - Needs to be cased, could be re-worked like parker 2
Mantua - New area, going to be drilled soon
Craig 3 - Going to be drilled soon
Franklin - To be announced and drill soon
For this calculation I am taking the low ranges on the production numbers and cannot include the Dale lease well because we won't know production from that site until Q4 results are released end of August. Either way, lots of production from 20 wells which will increase our reserves quite a bit. Information can be found in the Q3 MD&A and 2014 news releases.
Macneil(13) + Parker(13) + Craig(26) + Fayette(90) + Roundtree(2) + Miller(1) = 145bopd(low end)
145bopd X $100 barrel(brent pricing) X 90 days = $1,305,000 a quarter in revenue. This is the revenue using the lowest production numbers, lower oil prices, and not considering the CDN/US currency exchange. Then to top it off, KFG is the operator of these wells since one of the directors owns a drill rig and we get between $120,000 - $150,000 in revenue per quarter from management fees.
Calculated Quarterly revenue - $1.4 to 1.5 million going forward.
Net profit margins from past quarters vary, but prior to Q3 and the accrued income KFG didn't count, they earned $242,000 net in Q1/Q2 on $1.35 million revenue.
I also believe that KFG will have more than double their reserves from last year (122,500Mbbl) which was worth $6,125,000 based on $50 a barrel in value from their 51-101 report.
WPP Acquires new wells
Symbol WPP
Shares Issued 32,137,274
Close 2010-05-17 C$ 0.14
Recent Sedar Documents
Western Plains signs LOI to acquire heavy-oil interests
2010-05-18 15:01 MT - News Release
Mr. David Forrest reports
WESTERN PLAINS PETROLEUM ENTERS LETTER OF INTENT TO ACQUIRE LLOYDMINSTER HEAVY OIL INTERESTS FOR $1.5 MILLION
Western Plains Petroleum Ltd. has entered into a non-binding letter agreement with two private oil and gas companies, Corlac Resources Ltd. and Brahma Resources Ltd., to acquire a 100-per-cent working interest in certain jointly held petroleum and natural gas rights located in the Lloydminster area of Saskatchewan for a purchase price of $1.5-million, subject to standard industry adjustments. The Transaction is expected to close on or about June 18, 2010, with an effective date of May 1, 2010.
The Company has reserved 10,000,000 common shares ("Common Shares"), at a price of $0.15 per share, as the consideration for the $1.5 million purchase price. These Common Shares are intended to be issued and allocated as to 5,000,000 Common Shares each to Corlac and Brahma at closing of the Transaction.
The Transaction contemplates Western Plains acquiring Corlac/Brahma's jointly held 100% interest in 920 gross acres (920 net acres) of land in the Lloydminster area containing two active wells, located at 13-06-51-25 W3M and 14-32-48-22 W3M, 10 shut-in wells and three identified drilling locations, for a total of 12 gross wells (12 net wells). The Assets were evaluated by the independent engineering firm of Chapman Petroleum Engineering Ltd. ("Chapman") in a report prepared for Brahma Resources Ltd. entitled Reserve and Economic Evaluation Certain Heavy Oil Interests Lloydminster Area Saskatchewan, effective March 1, 2010, dated April 28, 2010 (the "Chapman Report"), in accordance with the rules under National Instrument Standards of Disclosure for Oil and Gas Activities ("NI 51-101"). The Chapman Report has been prepared in accordance with the standards contained in the Canadian Oil and Gas Evaluation Handbook and the reserve definitions contained in NI51-101.
Western Plains has called its annual general and special meeting for June 18, 2010 to seek shareholder approval for, among other matters, the Transaction in accordance with the Exchange's policies. The votes of Mr. David Forrest, President and CEO of the Company, who is also the President and CEO of Brahma, who hold 35.6% of the outstanding Common Shares, will not be included in the calculation of shareholder approval sought for the Transaction at the annual general and special shareholders' meeting.
The Transaction will enhance the Company's presence in the Lloydminster Alberta/Saskatchewan area by increasing the number of producing wells to 8 gross (8 net) wells and its inventory of shut-in wells with re-entry and re-activation potential to 13 gross (13 net) wells. Currently, the Company holds interests in 6 gross (6 net) producing wells and 3 gross (3 net) shut-in wells in the Lloydminster, Alberta area.
2 billion shares to break past 0.0002 IMO. After that if we get some news, things could get crazy DLAD and TFZI both run by the same CEO are getting some serious volume today. Watch for EWKS, another company ran by the same CEO.
Theres enough paper at 0.0001 to choke out an elephant. We need at least another 500 mil shares @ 0.0001 to get a bid going, just my opinion.
thanks
Can someone post level 2 please?
"Current consulting work is on projects around Business Development, Channel Development and Technology Development. Lots of development in there. My deal sheet includes over 70 major contracts or agreements."
Right from his website.
http://michaeldevellano.com/ - BUNM CEO page
CEO of BUNM also has another webpage dedicated to himself, his company, and it lists some info that might not be on the Burned Media website.
http://michaeldevellano.com/
what does it look like after the 3's in terms of resistance?
Is this O/S and A/S posted on the page accurate?
BM Ltd. Current Market Valuation
2.8 B shares issued
1.2B restricted
1.6B float
I hope so, because with some good news this play can run nice and hard.
yup, something is going on. 40 grand on a stock that hasnt had news in 9 months, and hasnt gone farther than 0.002 in over a year means theres gotta be something in the works.
How does L2 look?
Two signal sites give IHGP a buy rating
http://www.stockta.com/cgi-bin/analysis.pl?symb=IHGP&num1=11&cobrand=&mode=stock
http://quote.barchart.com/texpert.asp?sym=IHGP
IHGP HYPE OUT THERE:I went to several penny stock forums through goggle this weekend and lots of them are promoting and pushing IHGP, even some of the more reliable posters. This could actually be the next big mover, at least to the 0.001-0.002 level.
Here is one blog as an example that I found, but lots of forums, blogs, ratings sites show this play should move.
http://investing-information.com/zecco-breakfast-bell-blog/ihgp-lotto-breakout-april-2010/
IHGP Share Structre as of Feb 2010
Capital Structure
Authorized Shares: 7,500,000,000
Outstanding Shares: 5,213,328,461
Public Float: 4,963,328,461
As of February 4th, 2010.
http://www.interactholdings.com/Investor_Relations.html
Dont try too hard basher.