KFG Production Chart As Of November 1st 2014
Using the current numbers that were updated today on the website, here is what KFG's wells are producing as a whole and the net back to KFG. Fayette does not state a number, but if you look back at other financial statements, it shows production at a constant 110-120bopd from the 9 wells. For this chart I'm only using the lower amount.
Wells(name) Total Production KFG's WI KFG's Cut(bopd)
9 Fayette 110bopd 75% 80bopd
2 Macneil 50bopd 20.5% 10bopd
3 Parker 90bopd 10% 9bopd
3 Craig 165bopd 21.5% & 10% 30bopd
1 Barnum 140bopd 9% 13bopd
1 Dale 25bopd 17% 4bopd
1 Miller 12bopd 4% 0.5bopd
20 Producing 592bopd - 146.5bopd
Average WI in all wells: 146.5bopd(KFG) / 592bopd(Total) = 24.7% or 25% average
Now lets see what KFG can cash flow at $80 per barrel with LLS prices right now:
146.5(bopd) X $80(per barrel) = $11,720 per day X 30(days) = 351,600 per month. This does not include the management fees given to KFG per well. All in costs per well is around $30 per barrel, so very good margins even with the lower prices.
Below is a list of wells that either have to A) Be put back online B) Need to be drilled, or C) Have to still pay out.
- Craig 3 well still needs to pay out, increasing from 10% to 21.5%
- Barnum 2 wells still needs to pay out, increasing from 9% to 20.5%
- Roundtree well shut for now, needs to be put back online
- Miller well still needs to pay out, increasing from 4$ to 18%
- 1 Fayette well to be drilled soon, as per the September 11th 2014 news release
- Craig 4 well to be drilled in December 2014
- Barnum offset in first quarter of 2015, could be 2 other potential offsets
- Several Franklin areas to drill in Q1 2015 with 3 targets ready
All information was updated November 1st 2014 as per the main page of the KFG website.
