KFG Resources Ltd. (KFG)

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KFG Resources purchases interest in West Hazel assets

2019-02-22 07:52 MT - News Release


Mr. Robert Kadane reports

KFG RESOURCES LTD. PURCHASES PRODUCTION IN SASKATCHEWAN

KFG Resources Ltd. has completed a production purchase in western Saskatchewan. A financial partnership was formed with Hillcrest Petroleum whereby the company purchased 15 per cent of Hillcrest's position in its West Hazel assets, which amounts to 75 per cent of the total interest available. Total consideration paid by the company to Hillcrest was $150,000 (approximately $113,000 (U.S.)). Four shut-in wells are being re-entered and returned to production after being shut in for four years. It will take a few weeks to ascertain how much production will be recovered (what the daily rate from all four wells will be). In addition, other potential on the lease is being evaluated (consisting of 220 acres) and KFG Resources has the right to participate in any further development of the assets at a level equal to its current percentage of Hillcrest's ownership.

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