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KFG Resources Ltd. V.KFG

KFG Resources Ltd is a North American based company. It is primarily engaged in the production of crude oil and natural gas in the United States. It has developed onshore oil and gas reserves with activities concentrated in Concordia, Catahoula Parishes, Louisiana, Wilkinson Counties, Mississippi, Comanche County and, Kansas. Also, the company is focused on participating in the drilling of shallow wells in north-central Texas.


TSXV:KFG - Post by User

Post by ResourcefulGuyon Dec 10, 2019 4:04pm
160 Views
Post# 30441177

3.5 cents a share! Ya kiddin, right? Nope

3.5 cents a share! Ya kiddin, right? Nopethe market can often remain low longer then you might remain solvent.

There be some value here though.  A petty 50-70 bopd is worth something.  It looks like present pricing for oil is near this outfits breakeven, so with cash they have, they can hang on for a couple of years yet.  Problem is , or many are... they have never been good at growing and they are really, very much, sub-optimal size to operate.  So.. with no money to grow and a history on never finding much oil anyway, they should sell.  The numbers say they have to sell as they do not cash to grow even if they could find oil for a change.

Often oil weighted companies of this ilk sell in the $50-$100 thousand per flowing barrel of production.  This one is even too small to generalize like that.  Their books seem reasonable, they list about $2 mill in property and $1 mill in equipment and a half a mill in cash.. not worried about anything else like a one ton pick up or that $6K in furniture.

Maybe in the area of $6 mill if they score goodwill on a sale.  So it is worth the play.. at 4 pennies is a double, at 3 pennies an easy 3 bagger.  ya have not seen much sell at 3 cents.. 3 and half seems the play and hold for a planned three years for that triple.   
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