KFG Resources Ltd.

August 04, 2011 09:07 ET

KFG Re-establishes Lower Tuscalossa Production at Fayette

NATCHEZ, MISSISSIPPI--(Marketwire - Aug. 4, 2011) - KFG Resources Ltd. ("KFG" or the "Company") (TSX VENTURE:KFG) reported today that the Company's Spring Hill L-T #1 well in Fayette County, Mississippi, was drilled to a depth of 9,900 feet to test the Lower Tuscalossa formation and has run production casing for a completion attempt as a producing well. Mr. Robert A. Kadane, President of the Company, stated that core analyses and pressure tests indicated 28 feet of virgin reservoir from the Massive sand of the Lower Tuscalossa at 9,712 to 9,740 feet. The L-T #1 well was drilled and will be operated by the Company's subsidiary, KFG Petroleum Corporation. He further noted that initial production rates will be announced following completion.

The Company owns 100% of the working interest (79.16% net interest) in the Spring Hill L.T. #1 well, reverting to a 74.6% (59.1% net) working interest, after payout to the Company of all costs incurred.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • KFG Resources Ltd.
    Mr. Robert A. Kadane