KFG Resources Ltd. (KFG)

[JonnyRBuck12]

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.