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Old 11-13-2013, 10:39 AM   Nav to Top  #31
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Production Over The Last 4 Weeks



Well Production Pre-Payout Payout



Macneil 2&3 130bopd 10.4bopd 26bopd



Parker 23bopd 2.5bopd 2.5bopd



Craig 100bopd 10bopd 22bopd



Hanna(wildcat) Testing 5% 18%



Concordia TBD - -



Frankling Wells TBD - -





Added production over month = 22.9bopd X $106(brent) = $2427 additional

Daily revenue

Per quarter added revenue $218,430





After Payout = 50.5bopd X $106(brent) = $5353 additional daily revenue



Per quarter added revenue $481,770



These figures are just estimates as the price of oil can fluctuate. As well, the

possibility of some production decline, depending on how long payout takes.

But KFG also makes money as the operator on every single well. That’s an

additional revenue we don’t see until the quarterly report comes out.



The company was producing 86.15bopd as per the last quarterly. However, that

didn’t include some payouts changing over and we also had a couple wells offline.

Between the old and new production, we should be at 110bopd(brent pricing), but

I think this figure is higher due to payouts changing over. With Hanna and Concordia

to come online and payouts to change, 150bopd year end target is still achievable in my opinion.

Even at $100bopd brent pricing, that’s $1.5 million in revenue per quarter + operator fees.

We have no debt, so all profits can go back into drilling more new wells.
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Old 12-28-2013, 03:10 PM   Nav to Top  #32
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KFG Q2 Highlights Below:

Before reading forward, I would like to say that I’m happy with the continued growth. But we still had some issues that held back the higher revenue potential in Q2(Dale wells were still offline, no recent wells were part of production, lower oil prices, 2 dry holes and a few other costs). But if you read through the MD&A highlights, lots of these issues were resolved in Q3. This leads me to believe that Q3 will be a much more profitable quarter and Q4/year end will be the one that adds significant value. So far 2013 total earnings is at $242,000 or just under half a cent EPS.

2012 Net Income: $76,000 after mixed quarters and severe production problems
2013 Q1 Net Income: $ 113,525
2013 Q2 Net Income: $ 124,840

Financial Statements as per October 31, 2013

Cash: $ 1,662, 434
Accounts Receivable: $609,898
Marketable Securities: $506
Prepaid Expenses: $5,886

Reclamation Bond: $20,000
Property and Equipment: $1,291,388

Debt: $0
Accounts payable and liabilities: $1,281,494

Liquidity risk
The Company’s approach to managing liquidity risk is to ensure that it will have sufficient liquidity to meet liabilities when due. As at October 31, 2013, the Company had a cash balance of $1,662,434 to settle current liabilities of $1,281,494. Management intends to fund these liabilities through the use of existing cash balances and from cash flows from operations over the coming year. Management believes the Company has sufficient funds to meet its liabilities as they become due.

MD&A Highlights:

Oil production decreased from 78.57 BOPD to 74.59 BOPD, and gas production increased 3.2 MCF per day. The average price increased $0.74 per MCF and the average price of crude oil decreased $2.77 per bbl when comparing the six months ended October 31, 2013 to October 31, 2012.


Liquidity and Capital Resources
The Company’s main sources of liquidity are internally-generated cash flow from its oil and gas operations and access to equity capital markets. Because KFG’s internally-generated cash flow is presently sufficient to fund its overall operating expenses, the Company will not require continued additional funding in order to execute on its business strategy
KFG had cash at October 31, 2013 of $1,662,434. Oil production at Fayette is providing positive cash flow and will continue to do just that. Also the Company’s new oil revenues will provide a borrowing base the Fayette development. As of now, the Company plans to expand as cash flow permits.

During the quarter ended October 31, 2013, there was no additional drilling at Fayette in Jefferson Co., M. Operational costs are under control and still being reduced. The Dale lease was still shut-in pending saltwater disposal approval which has since been granted. The MacNeil #3 well was completed and brought on production and the Craig #1 well was brought on production in early November 2013.

Share Capital
The total number of shares outstanding as at October 31, 2013 and December 27, 2012, is 50,584,144. As of October 31, 2013 and December 27, 2013, there were no stock options outstanding. There were no warrants outstanding as at October 31, 2013 or December 27, 2013.

Outlook

Currently there are 8 wells producing at Fayette. The 3D seismic program has been reprocessed and the Company has several promising leads. The Company’s interest reverted in March 2013 by payout to 74.9% working interest. There are several shallow areas left to test in calendar 2014 and beyond. Since Fayette paid out, several new wells have been made that basically make up for the loss of production at Fayette. They include the MacNeil #2 and #3 wells, the Parker #2 and the Craig #1 wells. All three areas have additional offset potential. In addition, two new areas, one Concordia Parish, LA, and one in Adams County, MS, will be tested in the first half of 2014. All projects will be paid for out of cash flow. No money will be borrowed.
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Old 01-06-2014, 11:42 AM   Nav to Top  #33
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Level 2 Quote
Market Maker Shares Bid Price Ask Price Shares Market Maker
35,000 0.035 0.045 179,000
255,000 0.030 0.055 50,000
67,000 0.025 0.060 50,000
200,000 0.020 0.080 10,000
264,000 0.015 -- -- --
200,000 0.010 -- -- --
300,000 0.005 -- -- --
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Old 02-12-2014, 08:25 PM   Nav to Top  #34
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Symbol C : KFG
Shares Issued 50,584,144
Close 2014-02-11 C$ 0.045
Recent Sedar Documents

View Original Document
KFG Resources sets production casing on Craig 2 well


2014-02-12 15:32 MT - News Release


Mr. Robert Kadane reports

KFG RESOURCES LTD.: PRODUCTION CASING SET ON CRAIG #2 WELL

KFG Resources Ltd.'s wholly owned subsidiary, KFG Petroleum Corp., has run production casing in its Craig No. 2 well, a 40-acre west offset to its Craig No. 1 well. The well was drilled to 6,600 feet. Thirteen feet of 2ndWilcox oil sand was cored at 4,340 feet and the well is structurally flat with the Craig No. 1 well, significantly expanding the oil reservoir. The Craig No. 1 well continues to flow at rates varying between 90 and 100 barrels of oil per day. KFG will report when the well is completed and producing. KFG's working interest in the well and project is 10 per cent, reverting to 22 per cent at payout. KFG is moving in on the Parker No. 4 well in Adams county, Mississippi. The 6,300-foot test is offsetting production in the Wilson sand of the Wilcox and will test several zones that have oil shows in the immediate area. The company has several projects nearing completion for drilling. Weather delays have restricted KFG's ability to finish working on its deep test in Warren county, Mississippi.

© 2014 Canjex Publishing Ltd. All rights reserved.
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Old 02-13-2014, 09:30 AM   Nav to Top  #35
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Level 2
Orders/Shares Price Price Shares/Orders
5 / 50000 0.035 0.035 40000 / 1
3 / 270000 0.03 0.045 67000 / 1
5 / 79000 0.025 0.055 65000 / 2
1 / 100000 0.02 0.06 50000 / 1
3 / 264000 0.015 0.09 16000 / 1
1 / 200000 0.01 0.1 10000 / 1
1 / 300000 0.005 -- -- / -
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Old 02-26-2014, 03:00 PM   Nav to Top  #36
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Symbol C : KFG
Shares Issued 50,584,144
Close 2014-02-24 C$ 0.03
Recent Sedar Documents

View Original Document
KFG Resources' No. 2 Craig well flows at 80 bopd


2014-02-26 12:54 MT - News Release


Mr. Robert Kadane reports

KFG'S #2 CRAIG FLOWING 80 BOPD

KFG Resources Ltd.'s wholly owned subsidiary, KFG Petroleum Corp., has completed its No. 2 Craig well, a 40-acre west offset to its No. 1 Craig well in the Second Wilcox sand at 4,335 feet. It kicked off flowing without stimulation at 80 barrels of oil per day, flowing tubing pressure of 170 on an 11/64-inch choke. Both wells are producing at a combined rate of 170 bopd. The company has 300 acres under lease, and additional development is planned in the early summer of 2014. KFG is operator of the well and has a 10-per-cent working interest, reverting to a 22-per-cent working interest after payout.

Also in the LaGrange field, KFG has logged its Parker No. 4 well, drilled to a depth of 6,450 feet and encountered 10 feet of Wilson oil sand at 6,242 feet. Production casing has been set, and the rig is moving to a new location on the company's Parker lease, designated as the Parker No. 3 location. The company has a 10-per-cent working interest in the Parker lease with no reversion and is operator of the well. It will be a 6,450-foot Wilcox test evaluating several Wilcox oil sands that have produced in the immediate area.

Warren county, Mississippi

The company is preparing to acidize its Hannah No. 1 well in the Second Rodessa sand at 11,180 feet in mid-March. Production testing will commence after the acid job.

© 2014 Canjex Publishing Ltd. All rights reserved.
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Old 02-27-2014, 09:48 AM   Nav to Top  #37
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Level 2
Orders/Shares Price Price Shares/Orders
1 / 100000 0.04 0.045 105000 / 5
8 / 40000 0.035 0.05 7000 / 4
6 / 604000 0.03 0.055 178000 / 8
5 / 67000 0.025 0.06 54000 / 2
1 / 100000 0.02 0.08 30000 / 1
2 / 250000 0.015 0.1 10000 / 1
1 / 200000 0.01 0.14 16000 / 1
1 / 300000 0.005 -- -- / --
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Old 02-28-2014, 10:45 AM   Nav to Top  #38
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Level 2
Orders/Shares Price Price Shares/Orders
4 / 169000 0.04 0.055 115000 / 3
5 / 53000 0.035 0.06 50000 / 1
5 / 579000 0.03 0.08 30000 / 1
4 / 55000 0.025 0.095 5000 / 1
1 / 100000 0.02 0.1 10000 / 1
3 / 264000 0.015 0.14 16000 / 1
1 / 200000 0.01 -- -- / --
1 / 300000 0.005 -- -- / --
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Old 03-04-2014, 10:22 AM   Nav to Top  #39
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Now at 10c, lets see some bids because the sellers aren't coming. Another positive quarter of growth and we should go over that mark.

Level 2
Orders/Shares Price Price Shares/Orders
2 / 72000 0.045 0.1 19000 / 2
3 / 95000 0.04 0.14 16000 / 1
3 / 25000 0.035 -- -- / --
4 / 245000 0.03 -- -- / --
3 / 45000 0.025 -- -- / --
1 / 100000 0.02 -- -- / --
3 / 264000 0.015 -- -- / --
0 / 200000 0.01 -- -- / --
1 / 300000 0.005 -- -- / --
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Old 03-04-2014, 12:04 PM   Nav to Top  #40
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Level 2
Orders/Shares Price Price Shares/Orders
1 / 22000 0.045 0.055 15000 / 1
4 / 96000 0.04 0.06 50000 / 1
3 / 25000 0.035 0.07 50000 / 1
4 / 245000 0.03 0.085 16000 / 1
3 / 45000 0.025 0.09 226000 / 2
1 / 100000 0.02 0.1 19000 / 2
3 / 264000 0.015 0.12 56000 / 1
1 / 200000 0.01 0.2 53000 / 1
1 / 300000 0.005 -- -- / --

Now some sellers are coming out of the woodwork. I thought that moved too fast too soon. But come month end, those shares will be a bargain we see results after 9 months.
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