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Old 03-12-2014, 04:12 PM   Nav to Top  #41
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Symbol C : KFG
Shares Issued 50,584,144
Close 2014-03-11 C$ 0.06
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KFG Resources's Parker No. 4 well flows at 70 bopd


2014-03-12 15:56 ET - News Release


Mr. Robert Kadane reports

KFG RESOURCES LTD.: PARKER #4 WELL FLOWING 70 BOPD

KFG Resources Ltd.'s wholly owned subsidiary, KFG Petroleum Corp., has completed its Parker No. 4 well flowing 70 barrels of oil per day on an 11/64ths-inch choke, with flowing tubing pressure of 110 pounds per square inch. KFG is operator of the well and has a 10-per-cent working interest.

In a related development, production casing has been set to 6,450 feet in the Parker No. 3 well. Two oil sands were encountered: the Baker sand at 6,200 feet and the Wilson sand at 6,218 feet. A completion attempt will be made in the Wilson sand next week.

© 2014 Canjex Publishing Ltd. All rights reserved.
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Old 03-17-2014, 09:22 AM   Nav to Top  #42
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Level 2
Orders/Shares Price Price Shares/Orders
5 / 210000 0.05 0.06 4000 / 1
3 / 41000 0.045 0.065 20000 / 1
3 / 73000 0.04 0.07 154000 / 3
4 / 39000 0.035 0.075 50000 / 1
3 / 230000 0.03 0.08 50000 / 1
1 / 20000 0.025 0.085 110000 / 2
2 / 200000 0.02 0.09 136000 / 1
3 / 264000 0.015 0.1 99000 / 3
1 / 200000 0.01 0.12 56000 / 1
1 / 300000 0.005 0.14 56000 / 2
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Old 03-28-2014, 11:17 AM   Nav to Top  #43
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Level 2
Orders/Shares Price Price Shares/Orders
3 / 111000 0.055 0.065 9000 / 3
3 / 9000 0.05 0.07 160000 / 6
2 / 19000 0.045 0.075 50000 / 1
1 / 26000 0.04 0.08 55000 / 2
2 / 62000 0.035 0.085 110000 / 2
2 / 220000 0.03 0.09 136000 / 1
1 / 20000 0.025 0.1 89000 / 2
1 / 100000 0.02 0.12 56000 / 1
3 / 264000 0.015 0.14 40000 / 1
1 / 200000 0.01 0.17 50000 / 1
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Old 04-01-2014, 07:01 PM   Nav to Top  #44
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KFG Q3 Financial and MD&A Highlights(As of January 31, 2014)

Before reading forward I just want to say that I did speak to the company as soon as these were released. Due to a couple reasons we did have a loss in Q3. This is because 1) there was accrued income of at least $400,000. This is revenue that KFG has not received yet and therefore cannot be recorded. Secondly, due to the new busy drill schedule, KFG had to hire extra workers, additional equipment and other expenses increased. Overall nothing has changed and we are still growing, therefore I expect Q4 to be much larger in terms of profit because we will be adding the remaining Q3 income/profit. This is all in the MD&A posted below and you can do the calculations yourself to confirm.


Q2 2013: 14 wells + fees = $758,833 in revenue this quarter

Q3 2013: 20 wells + fees = $605,105 in revenue this quarter
-- You can't increase wells, production and management fees without increasing the overall revenue. Again this is due to a massive amount of accrued income.

Accrued Revenue Definition | Investopedia

Now your probably wondering how I figured out around $400,000 in accrued income still to be added. As per the Q2 results it says that production lost from La Fayette was restored with the new wells that are in production. That means prior to the payout, KFG was getting 100bopd from there. So in Q3 we should of done at least that and then some more. Then you need to take into consideration the management fees. We did $148,000 in Q2 but only $135,000 in Q3 and we added new wells so this doesn't make sense either.

100bopd X $100brent X 90 days = $900,000 roughly and then any additional management fees ontop of that. Originally I calculated between $1-1.2 million in revenue for the quarter with a profit.


Cash: $1,365,827
Accounts Receivable $447,490
Marketable Securities: $468
Prepaid Expenses: $14,665
Reclamation Bond: $20,000
Property & Equipment: $1,022,625

Total Assets: $2,871,075

Debt: 0
Liabilities: $881,607

Outlook

Production at Fayette is stable and has started a slow decline. With the Dale lease back on production and new production coming off the Craig and Parker leases, KFG will have adequate internal cash flow to develop existing leases as well as support several new prospects in the coming months. Unless the price of oil collapses, the Company will generate sufficient capital to fund its requirements throughout 2014 internally

KFG had cash at January 31, 2014 of $1,365,827. 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. The Company is experiencing new cash flow from the Craig #1 and #2 wells, the MacNeil #3 well, the Parker #2 well and Parker #4 well. In addition, the Parker #3 well is awaiting completion. KFG has two additional prospects waiting drilling. Two additional wells have been staked, the Parker #5 and the Craig #3, both in Adams Co., MS.


The Company’s primary producing oil and gas reserves are located in the Dale Lease, Concordia Parish, Louisiana, Board of Education wells, Franklin Co, Mississippi and the Galtrey Wagner 1-1 and 50-10 wells in the Fayette Field, Jefferson County, Mississippi as well as the Spring Hill #1,2,5 and 7 wells and the 26-1 and 26-2 wells - all at the Fayette Field. Production is averaging 120-130 BOPD at Fayette. A new well in Concordia Parish, Louisiana, the Miller #1, has been tested for 20 BOPD but is awaiting approval of its saltwater disposal system before full production can be obtained. KFG has a 5% WI in the Miller well reverting to an 18% WI at payout. A well was drilled in Adams Co., MS to 6,300’ the MacNeil #1, and was completed as a dryhole. In the first quarter of 2013 a second well (the MacNeil #2) was completed as producer followed bythe MacNeil #3 in August 2013. Both wells are now producing a total of 60 BOPD. In early November 2013, the Craig #1 was put on production for 90 BOPD followed by the Craig #2 in February 2014 for 50 BOPD. The Company has a 10% working interest in both wells reverting to 22% at payout.

On the Parker lease, also in Adams Co., MS, the Parker #2 well was put on production for 20 BOPD – followed by the Parker #4 in March 2014 for 80 BOPD. The Parker #3 well has been cased waiting on completion. KFG has a 10% working interest in the Parker lease with no reversion. As of the date of this MD&A, two additional wells have been staked in Adams County, the Parker #5 and the Craig #3. KFG’s WI in the MacNeil is 8% before payout reverting to a 20% WI after payout.

The 3D seismic has been reprocessed and additional drilling will take place in 2014 based on the new 3D interpretations.


Revenue from the sale of oil and gas was $471,606 for three months ended January 31, 2014, compared to $836,708 for the three months ended January 31, 2013. The decrease in revenue is a result of a lesser price for crude oil and declining production volumes. Also; some production hadn’t been released because of title work.

Lease operating expenses were $230,018 for the three months ended January 31, 2014 compared to $184,786 for the three months ended January 31, 2013. The results were comparable between periods.

Intangible drilling costs and dry hole increased to $188,829 for the three months ended January 31, 2014 compared to $165,091 during the three months ended January 31, 2013. The increase is a result of a dryhole on the Moore lease in January 31, 2014 plus saltwater disposal expenses on the Parker and Craig leases in Adams Co., MS. Both leases needed saltwater disposal wells.

General and administrative expenses for three months ended January 31, 2014 were $413,459 compared to $236,514 for the three months ended January 31, 2013. The main increase in costs is a result of more automotive expenses, higher insurance costs, higher office expenses, higher rent, as well as two new employees.

Depletion and amortization costs for the three months ended January 31, 2014 were $89,975 compared to $54,287 for the three months ended January 31, 2013. The main increase is a result of depletion of the reserves at Fayette.

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. The Company anticipates that public capital markets will serve as the principal source of capital to finance its future oil and gas activities and/or significant property purchases. Changes in the capital markets, including a decline in the prices of natural gas and oil, could materially and adversely impact on KFG’s ability to complete further equity financings, with the result that the Company may be forced to scale back its operational activities.
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Old 04-03-2014, 05:26 PM   Nav to Top  #45
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KFG Resources stakes two LaGrange locations


2014-04-03 15:21 MT - News Release


Mr. Robert Kadane reports

KFG RESOURCES LTD. OPERATIONS UPDATE

KFG Resources Ltd.'s wholly owned subsidiary, KFG Petroleum Corp., has staked two locations in the LaGrange field -- one on the Parker lease (the Parker No. 5) and one on the Craig lease (the Craig No. 3). Drilling operations should begin in the next 45 days.

Parker lease

The combined production from the Parker No. 2 and Parker No. 4 wells is approximately 105 barrels of oil per day. The Parker No. 3 well has just been put on production in the Wilson sand at 6,221 feet and initial production is 20 barrels of oil per day. The well will be production tested for 30 days before deciding whether or not to add another zone. The company has a 10-per-cent working interest in the Parker lease.

Craig lease

The Craig No. 1 well has been flowing for five months, averaging more than 85 barrels of oil per day with a flowing tube pressure of 250 pounds per square inch. The company has a 10-per-cent working interest in the Craig wells, reverting to a 22-per-cent working interest at payout. The No. 2 Craig well is averaging 40 barrels of oil per day.

© 2014 Canjex Publishing Ltd. All rights reserved.
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Old 04-03-2014, 06:36 PM   Nav to Top  #46
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Estimated Rates as per the Q3 Results and April 3rd news release

Well Production Pre-Payout Payout

Fayette (8) 120-130bopd 120-130bopd 90-95bopd
Macneil 2,3 60bopd 5bopd 12bopd

Parker 2,3,4 125bopd 12.5bopd 12.5bopd

Craig 1,2 125bopd 12.5bopd 28bopd

Hanna(wildcat) Testing 5% 18%

Miler(tested) 20bopd 1bopd 4bopd

Dale 1&2 Just put back online, production unknown

Concordia TBD - -

Franklin TBD - -

The company had 20 wells producing last quarter, not sure where the other wells are. Parker 3, Hannah,
Craig 2, Miller and the Dale wells are not part of that producing group. You can see in the MD&A that is says 20 wells PRODUCING not owned. Macneil 2&3 had a combined production of 130bopd last year, I think it paid out already. Fayette also paid out.

Current Production estimate: Fayette(90bopd) + Macneil(12bopd) + Parker(12.5bopd) + Craig(12.5bopd) = 127bopd. Then revenue: 127bopd X $100(brent avg) X 90 = $1,143,000 quarterly. There are other variables in this such as oil price, decline, and the Miller, 2 Dale wells and Hannah have not been added. Management fees are another $130,000 - $170,000 to be added quarterly.

Reserves will be massive this year because in 2012 it was based only on 10 wells, the 8 Fayette and 2 others. 400,000 barrels P + P(122,500 net to KFG) 97% light oil.

As per the last MD&A released this week:

The Company’s primary producing oil and gas reserves are located in the Dale Lease, Concordia Parish, Louisiana, Board of Education wells, Franklin Co, Mississippi and the Galtrey Wagner 1-1 and 50-10 wells in the Fayette Field, Jefferson County, Mississippi as well as the Spring Hill #1,2,5 and 7 wells and the 26-1 and 26-2 wells - all at the Fayette Field. Production is averaging 120-130 BOPD at Fayette. A new well in Concordia Parish, Louisiana, the Miller #1, has been tested for 20 BOPD but is awaiting approval of its saltwater disposal system before full production can be obtained. KFG has a 5% WI in the Miller well reverting to an 18% WI at payout. A well was drilled in Adams Co., MS to 6,300’ the MacNeil #1, and was
completed as a dryhole. In the first quarter of 2013 a second well (the MacNeil #2) was completed as producer followed by the MacNeil #3 in August 2013. Both wells are now producing a total of 60 BOPD. In early November 2013, the Craig #1 was put on production for 90 BOPD followed by the Craig #2 in February 2014 for 50 BOPD. The Company has a 10% working interest in both wells reverting to 22% at payout.

On the Parker lease, also in Adams Co., MS, the Parker #2 well was put on production for 20 BOPD – followed by the Parker #4 in March 2014 for 80 BOPD. The Parker #3 well has been cased waiting on completion. KFG has a 10% working interest in the Parker lease with no reversion. As of the date of this MD&A, two additional wells have been staked in Adams County, the Parker #5 and the Craig #3. KFG’s WI in the MacNeil is 8% before payout reverting to a 20% WI after payout.

The 3D seismic has been reprocessed and additional drilling will take place in 2014 based on the new 3D interpretations
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Old 04-18-2014, 12:25 PM   Nav to Top  #47
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List of new wells so far this year. These are the production rates when announced and pretty much all of them all slow decline production wells.


1)Macneil 2 - 70bopd
2)Macneil 3 - 80bopd

3)Miller 1 - 25bopd

4)Parker 1 - 80bopd
5)Parker 2 - 25bopd
6)Parker 3 - 20bopd
7)Parker 4 - 70bopd
Parker 5 - To be drilled in May

8)Craig 1 - 100bopd
9)Craig 2 - 80bopd
Craig 3 - To be drilled in May

Hannah - To be completed soon

9) Fayette wells - 120bopd (KFG has a 75% interest in all of these that doesn't change)
2) Dale wells - These went offline before 2012 reserves were out so they could not be included. They have since been put back into production so this will be additional revenue AND reserves.

There you have all 20 wells KFG currently produces from AND what is coming up.
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Old 04-19-2014, 09:41 PM   Nav to Top  #48
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Finally! The project information on the website has been updated!

KFG Resources Ltd.

Before reading the project information, keep in mind that some of the information such as the production rate isn't up to date. None of the 2014 new wells are added to that production, or the natural gas/NGL's. These wells are Craig 2, Parker 2,3,4 or dale which is easily another 25-40bopd.

As well, it mentions Q3 revenue without notice of the accrued income. Even if you calculate what it says at 80bopd, we should had earned the following:

80(bopd) X 90(days) X $97(brent avg) = $698,400 + $133,000(management fees mentioned in Q3) = $831,899. That should of been Q3 earnings, again this is why we lost in Q3 instead of made another profit. But the $360k difference should be added in Q4.

Other projects for 2014 as mentioned:

- Craig 3
- Parker 5
- Hannah ( Says suspended waiting consultation from partners. I was told by management
that the company is waiting for an engineer to come and assess the best way to get
production from this well.
- Dale (this was put back online as mentioned in the Q3 MD&A)
- Potential new well at Fayette Field
- Franklin wells to be drilled this year, obviously multiple from website description
- Potential well bores to be re-worked on Concordia lease, dependent on Miller #1
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Old 04-23-2014, 02:34 PM   Nav to Top  #49
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Cheap shares coming down. I don't understand why someone would stack the asks with numerous orders when the volume was just starting to pickup? These sellers need to unload
and move on. Yeah we got 4 months to go until year end and the new reserve update, but I think the stock is dirt cheap considering how fast they are growing and what other projects
have yet to be announced. Level 2:

Level 2
Orders/Shares Price Price Shares/Orders
3 / 26000 0.04 0.045 27000 / 1
4 / 63000 0.035 0.05 78000 / 3
3 / 81000 0.03 0.06 136000 / 1
2 / 52000 0.025 0.065 140000 / 2
1 / 100000 0.02 0.07 78000 / 2
3 / 264000 0.015 0.075 50000 / 1
1 / 200000 0.01 0.08 50000 / 1
1 / 300000 0.005 0.085 110000 / 2
-- / -- -- 0.1 80000 / 1
-- / -- -- 0.12 30000 / 1
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Old 04-27-2014, 11:13 AM   Nav to Top  #50
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Some investors told me that the KFG website isn't working properly, so I'm posting the current project list on here.

Wilcox Oil Play
KFG focuses on the Wilcox formation which is a water-drive reservoir of Eocene Age prevalent in southwest Mississippi and east-central Louisiana. To give the reader a visual reference, it can be described as a vast tributary system of the Mississippi river. The Wilcox is a relatively shallow horizon varying between 3500 and 9200 feet in depth. There is also the deeper Tuscaloosa formation in many of the areas where KFG operates and when found it is known to be a prolific production horizon. KFG's projects are described below.

Mississippi

Fayette Field, Jefferson County, Mississippi
The Fayette field is located 6 miles northwest of the town of Fayette and 21 miles northeast of the city of Natchez. KFG has a 74.9% working interest (59.4% revenue interest) in the Fayette field. Fayette is a salt feature which encompasses approximately 3800 acres. The structure is a large anticline. It has had production from the Wilcox formation as well as the deeper Tuscaloosa formation. KFG commissioned a 3D seismic survey in 2008 and the results led to the discovery of the Springhill feature in June of 2009. Springhill was fully developed with 5 producing wells. KFG's consulting engineers calculate 2P reserves at Springhill to be approximately 130,000 barrels with a present value (discount at 10%) of $6,500,000. Average daily production from Springhill for the quarter ended January, 2014 was 75 BOPD. In addition to Springhill, KFG has 3 other wells at Fayette including 1 gas well. The reprocessed 3D seismic survey reveals both shallow Wilcox targets and a deeper Tuscaloosa target at Fayette which KFG intends to test in the future. The cash flow from Fayette continues to fund further exploration at Fayette as well as other projects KFG has in Mississippi and Louisiana.

Carthage Point Field, Adam's County Mississippi
Carthage Point is located in Adam's County, Mississippi. KFG drilled the MacNeil #2 in March of 2013 and followed that with a successful offset, the MacNeill #3 in October 2013. KFG has an 8% working interest which reverts to a 20% working interest at payout. Daily production from the two wells is 70 BOPD.

LaGrange Field, Adam's County Mississippi
LaGrange is also located in Adam's County, Mississippi. KFG has a 10% working interest with no reversion. The Parker #2 well was drilled in October of 2013 and completed at initial production of 20 BOPD. The Parker #4 and #3 wells were completed in the first quarter of 2014. Production from all three wells is averaging approximately 120 BOPD. A Parker #5 location has been staked and will be drilled in the near future. Also at LaGrange but in a different part of the field, KFG drilled its Craig #1 well in November 2013. The well has been flowing for 5 months and is averaging 85 BOPD. The Craig #2 well was drilled in January of 2014 and is producing 40 BOPD. The Craig #2 significantly expanded the reservoir. A third well, the Craig #3, is planned in the late Spring 2014.

Franklin County, Mississippi
There are seven areas in Franklin County being leased by the Company and which the company intends to drill in 2014. Depths range from 4600 feet to 6800 feet. In each instance KFG intends to mitigate risk by keeping a 10% working interest and, if successful, backing in after payout for up to an additional 16.25%.

Warren County Mississippi
KFG washed down drilled an 11,300 foot test into the Second Rodessa formation in November of 2013. KFG has a 5% working interest in this well. Production casing was set and the zone has been acidized twice with no effect. Operations have been suspended until all owners have been consulted.

Louisiana
Concordia Parish, Louisiana
KFG has two leases in Concordia Parish. The Roundtree lease was drilled in 2012 and continues to produce 15 BOPD. Payout is expected in 2015 at which time the company's interest will go up from 12.5% to 29% working interest. The Clayton lease continues to produce 15 BOPD from the #1 Miller well. The company's interest is 4% increasing to 18% at payout. Other old well bores on the lease have promise if production from the #1 Miller well holds up.
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