2008-06-24 19:41 ET - News ReleaseKFG Resources completes Fayette seismic survey
2008-06-24 19:41 ET - News Release
Mr. Robert Kadane reports
KFG Resources Ltd.'s subsidiary, KFG Petroleum Corp., Natchez, Miss., has completed all fieldwork of the company's 3-D seismic survey of the company's leases covering approximately 14.3 square miles in the Fayette field area, Jefferson county, Mississippi. Processing and interpretation of the survey is expected to take from four to six weeks and the company anticipates that the analysis of the fieldwork will be completed in mid-July, 2008. If the results of the survey are favourable, the company will then participate in the drilling of a 10,000-foot testwell during the late third quarter or early fourth quarter of 2008. The company has approximately an 80-per-cent working interest in the Fayette field prospect.
Robert A. Kadane, president of the company, also reported that the company is preparing to drill a 6,100-foot Wilcox testwell in Avoyelles Parish, Louisiana, on a 640-acre lease block located in Section 35 and 36, T4N R4E. KFG Petroleum will act as operator of the well, if successful and retain a 21-per-cent working interest (15.75-per-cent net working interest) in the well. The lease block carries a 25-per-cent royalty interest. If successful and after payout, the company's interest will increase to 28.25-per-cent working interest (21.1875-per-cent net working interest).