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-   -   Strong Buy: KFG - KFG Resources Ltd (http://www.stockrants.com/forum/canadian-stock-picks/4583-kfg-kfg-resources-ltd.html)

JonnyR512 06-07-2010 10:04 AM

KFG - KFG Resources Ltd
 
KFG Resources Ltd
Symbol KFG
Shares Issued 42,147,311
Close 2010-06-03 C$ 0.055
Recent Sedar Documents



KFG brings Fayette production to over 100 bopd


2010-06-07 06:29 MT - News Release

Mr. Robert Kadane reports

FAYETTE FIELD PRODUCTION EXCEEDS 100 BOPD

KFG Resources Ltd.'s wholly owned subsidiary KFG Petroleum Corp.'s Spring Hill No. 5 well in the Fayette field, Jefferson county, Mississippi, was producing 50 barrels of oil per day, no water. The company perforated two feet of Stewart A sand and added that to the 4,600-foot sand production. The current production in the field is about 110 barrels of oil per day net to KFG. The company plans a workover and one shallow test this summer, the Spring Hill #6. Plans for a deep test await financing.

KFG Petroleum Corporation has approximately 4,100 acres of leases in the area and owns a 100% working interest (79.16% net) in the Spring Hill wells and in this offset location reverting to a 74.9% working interest (59.4% net) after payout of all drilling, seismic, land, exploration, development, taxes, and operating costs - currently, approximately $2.4 million (U.S.).



Still a nice little oil play if you ask me, especially with a 50 mil O/S fully diluted, no debt and they had a cash balance of $230k as of Jan 31 2010 as per their MD&A. Stock should be trading at a dime at least.

JonnyR512 09-08-2010 09:20 PM

KFG Resources Ltd
Symbol C : KFG
Shares Issued 50,480,644
Close 2010-09-08 C$ 0.04
Recent Sedar Documents
View Original Document
KFG's production casing in Spring Hill No. 6 runs

2010-09-08 15:39 MT - News Release


Mr. Robert Kadane reports

KFG RUNNING PRODUCTION CASING IN SPRING HILL #6 WELL

KFG Resources Ltd.'s wholly owned subsidiary, KFG Petroleum Corp., has run production casing for a completion attempt in the Spring Hill No. 6 well in the Fayette field, Jefferson county, Mississippi. The Spring Hill No. 6 well is a southwest offset to the Spring Hill No. 1 producer, and three potentially productive oil zones were cored between 3,840 feet and 3,928 feet in depth. Completion results will be reported as soon as available.

KFG has approximately 4,100 acres of leases in the area and owns a 100-per-cent working interest (79.16 per cent net) in the Spring Hill wells reverting to a 74.6-per-cent working interest (59.1 per cent net) after payout of all drilling, seismic, land, exploration, development, taxes and operating costs -- currently $2-million (U.S.).

JonnyR512 09-09-2010 10:41 AM

KFG getting some life this morning, pending results from spring well #6 could bring in some good production. Level 2 below:

Level 2

Orders/Shares Price Price Shares/Orders

1 / 28000 0.05 0.06 50000 / 1
4 / 389000 0.045 0.065 5000 / 1
4 / 340000 0.04 0.07 64000 / 3
2 / 109000 0.035 0.075 4000 / 1
3 / 670000 0.03 0.08 50000 / 1
1 / 100000 0.02 0.085 37000 / 1
1 / 100000 0.015 0.1 88000 / 2
1 / 200000 0.01 0.15 25000 / 1

JonnyR512 11-12-2012 11:34 AM

From KFG's last NR, the new well is producing at a much higher rate than I expected. Company should be doing over 200bopd of light oil before year end.

Below I posted Q2 Highlights, as well as the recent NR. I love the fact that they reduced their debt by around 25% in a quarter to $320k and they are the only

oil junior I know of this size that can run strictly off cashflow and don't require dilution.



Cash & Assets - $2.5 million

Debt & Liabilities - $320k

O/S - 50 million



KFG recompletes Spring Hill No. 1 well

2012-10-24 13:46 MT - News Release



Mr. Robert Kadane reports

SPRING HILL #1 WELL RECOMPLETED AT FAYETTE, JEFFERSON COUNTY, MS

KFG Resources Ltd.'s subsidiary, KFG Petroleum Corp. of Natchez, Miss., has recompleted the Spring Hill No. 1 well, at Fayette Field, Jefferson county, Mississippi. The well was recompleted by flowing and pumping 120 barrels of oil through a 10/64-inch choke. The pumping unit has been modified and the well will produce at a rate of 55 barrels of oil per day for several weeks before gradually increasing the rate. The Smith No. 26-2 well, drilled in September, 2012, has been perforated in the shallow Stewart B sand and is currently on a pump test -- results will be reported whenever production stabilizes. A shallow wildcat was drilled 4,200 inches south of Spring Hill, the Smith No. 10-1, and was completed as a dry hole, although it had excellent oil shows. Another well will probably be drilled in the vicinity in the spring of 2013.

KFG owns a 100-per-cent working interest in these wells, reverting after payout to a 74.9-per-cent working interest. On a final note, reprocessing of the 3-D survey with all of the new data will be completed within the next 30 days and will help determine KFG's future development program at Fayette.



Q2 Highlights:



The last two quarters ended April 30, 2012 and

July 31, 2012 have seen stable production. The return to profitability was because no dry holes were drilled. Going forward,

the Company plans to recomplete the Spring Hill #1 into the Stewart A Sand and should return the Company to a growth path

along with the new well – the Smith 26-2.



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 July 31, 2012 of $822,010. The new oil production at Fayette, currently over 120 BOPD, is providing

positive cashflow and will continue to do just that. Also the Company’s new oil revenues will provide a borrowing base the

Company did not have before the Fayette development. As of now, the Company plans to expand as cashflow permits.





So add the 120bopd per day in July with the new 55bopd(to increase gradually) and the other well being tested, 200bopd+ should be no problem.

The company also earned $200k in the last quarter, just about half a cent EPS.

JonnyR512 12-07-2012 07:32 PM

Just to get an idea of year end production and what the Smith 26-2 well could produce;

KFG Resources completes 26-1 well at Fayette
2012-01-18 12:04 MT - News Release

Mr. Robert Kadane reports
KFG'S 26-1 WELL COMPLETED AT FAYETTE
KFG Resources Ltd.'s wholly owned subsidiary, KFG Petroleum Corp., has opened up a new area within the limits of the old Fayette field. Located two miles southwest of Spring Hill, the company's 26-1 well has been completed in the Stewart B sand of the Wilcox formation at 3,900 feet. Eight feet of oil sand were encountered and the well was completed pumping 29 barrels of 41 gravity sweet crude oil per day. Production appears to be improving and further updates will be provided. A virgin reservoir in the 4,600-foot sand is behind pipe. A north offset will be drilled in the spring of 2012. Also, at Fayettte, a complete review of all seismic is being done with all the new well control. Another shallow Wilcox well due south of Spring Hill will be drilled in the spring of 2012 to test a new shallow feature.


So Smith 26-1 is producing 41 api oil at 30bopd, which is the best quality oil you can get. Sells for top WTI dollar. The Smith 26-2 well was drilled slightly deeper, maybe to get into a larger payzone.

As of the last MD&A, KFG was producing 123bopd. Then in the fall the Spring Hill well was put into production which had initially produced at 120bopd, but a choke was put on for several weeks. If the Smith 26-2 well produces at least 30bopd, then we should be in the range of 250-300bopd for year end. Keep in mind that KFG is able to run on cash flow, and being able to do that means they constantly have wells on the go. I
went through their recent NR's and found out that we still are waiting on results from two other wells. One from the La Fayette field where the 120bopd well was recently put in production and a new area well called
the MacNeil. The wild cat well was a duster, but that was already announced.

KFG Resources to drill two wells at Fayette field
2012-09-10 15:46 MT - News Release

Mr. Robert Kadane reports
KFG RESOURCES LTD FAYETTE FIELD UPDATE
KFG Resources Ltd.'s subsidiary, KFG Petroleum Corp. of Natchez, Miss., has staked two locations at the Fayette field, Jefferson county, Mississippi. The Smith 26-2 offsetts the 26-1, a Stewart B producer, and the Smith 10-1 is a wildcat south of Spring Hill. Both tests are shallow Wilcox tests to 4,200 feet. KFG owns a 100-per-cent working interest in both wells until payout, reverting to a 74.9-per-cent working interest after payout.
Adams county, Mississippi
KFG has assembled a 300-acre lease block within the field limits of the Carthage Point field and plans to drill a 6,000-foot Wilcox test to evaluate three oil sands producing in the area. The company has a 7-per-cent working interest before payout, reverting to a 19-per-cent working interest after payout. This project, known as the KFG MacNeil No. 1, will be drilled after the two wells at Fayette.

JonnyR512 12-13-2012 10:28 AM

Symbol

C : KFG



Shares Issued

50,584,144



Close 2012-12-12

C$ 0.055



Recent Sedar Documents

View Original Document




KFG reprocesses 2008 survey data from Fayette

2012-12-13 07:15 MT - News Release



Mr. Robert Kadane reports

STATUS OF 3D SEISMIC SURVEY, FAYETTE FIELD, JEFFERSON CO., MS

KFG Resources Ltd.'s 3-D seismic survey, completed in 2008, has been reprocessed including all existing new data from all wells drilled at Fayette since 2009. Several prominent strong leads have been produced on company acreage, and the next step is to detail the local areas involved, looking for areas where the seismic and geology coincide. The process should be completed in January, 2013. From its initial review of the new data, the company is anticipating an active drilling program at Fayette during the 2013 calendar year. Production at Fayette continues to average between 120 barrels to 130 barrels of oil per day





No news yet on the Smith 26-2 well and I don't think they've increased the Spring Hill well production rate just yet. As well, the Mac Neil well on our other property hasn't been announced either. Regardless, we got enough cashflow as mentioned in the MD&A to do all the new drilling in 2013.









2012-10-24 13:46 MT - News Release

Mr. Robert Kadane reports

SPRING HILL #1 WELL RECOMPLETED AT FAYETTE, JEFFERSON COUNTY, MS

KFG Resources Ltd.'s subsidiary, KFG Petroleum Corp. of Natchez, Miss., has recompleted the Spring Hill No. 1 well, at Fayette Field, Jefferson county, Mississippi. The well was recompleted by flowing and pumping 120 barrels of oil through a 10/64-inch choke. The pumping unit has been modified and the well will produce at a rate of 55 barrels of oil per day for several weeks before gradually increasing the rate



2012-09-10 15:46 MT - News Release

Adams county, Mississippi

KFG has assembled a 300-acre lease block within the field limits of the Carthage Point field and plans to drill a 6,000-foot Wilcox test to evaluate three oil sands producing in the area. The company has a 7-per-cent working interest before payout, reverting to a 19-per-cent working interest after payout. This project, known as the KFG MacNeil No. 1, will be drilled after the two wells at Fayette.

JonnyR512 12-21-2012 09:11 PM

KFG Q3 results

The Company is a small independent energy company engaged in the development of onshore oil and gas reserves with activities concentrated in Concordia and Catahoula Parishes, Louisiana, Adams, Jefferson, and Wilkinson Counties, Mississippi and Comanche County, Kansas.

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, Louisisana, 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. A second well will be drilled offsetting the MacNeil well in the first quarter of 2013. 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 2013 based on the new 3D interpretations

October 31, 2012 October 31, 2011
No. of producing wells 13 13
Average sales price
a) Oil U.S.$ 105.37/bbl U.S.$ 106.82/bbl
b) Gas U.S.$ 3.03/MMCF U.S.$ 5.13/MMCF

For the three month period ended October 31, 2012 compared with the three month period ended October 31, 2011:

Revenue from the sale of oil and gas was $706,628 for three months ended October 31, 2012, compared to $831,474 for the three months ended October 31, 2011. The decrease in revenue is a result of a lesser price for crude oil and declining production volumes.

Management fee revenue for the three months ended October 31, 2012 was $62,708 as compared to $35,814 for the three months ended October 31, 2011. The increase is a result of more work for other companies due to general increase in activity in the industry as well as two additional wells to operate

Lease operating expenses were $205,988 for the three months ended October 31, 2012 compared to $202,775 for the three months ended October 31, 2011. The results were comparable between periods.
Intangible drilling costs and dry hole increased to $281,615 for the three months ended October 31, 2012 compared to $801,424 during the three months ended October 31, 2011. The decrease is a result of the dry holes being shallow and less expensive than in the comparable 2011 period.

General and administrative expenses for three months ended October 31, 2012 were $307,492 compared to $278,419 for the three months ended October 31, 2011. The main increase in costs is a result of more automotive expenses, higher insurance costs, higher office expenses and higher rent.

Depletion and amortization costs for the three months ended October 31, 2012 were $71,519 compared to $58,419 for the three months ended October 31, 2011. Costs were comparable between periods.

The Company reported a net loss of $96,723 for the three months ended October 31, 2012 compared to a net loss of $474,560 for the three months ended October 31, 2011, with the decrease in net income a result of lower rates of production, and the write off of two dry holes shallow in nature compared to the expensive deep test (10,000’) written off in the summer of 2011.




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.

The Company expects to rely upon equity subscriptions to satisfy its capital requirements, including capital to finance its major development activities. There are no assurances that capital requirements will be met by this means of financing as inherent risks are attached therein including commodity prices, financial market conditions, and general economic factors. A further source of financing is the Company’s modest cash flow and partner participation in various projects.

KFG had cash at October 31, 2012 of $1,006,261. The new oil production at Fayette, currently over 120 BOPD, 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 Company did not have before the Fayette development. As of now, the Company plans to expand as cash flow permits.

It is anticipated the Company will have sufficient internal cashflow to continue its drilling program at Fayette through calendar year 2013. The new well, the KFG 26-1 is expected to contribute additional cash flows replacing the production from wells at Spring Hill as they begin a slow decline. The 26-1 well is currently producing 10 BOPD. The Smith 26-2 well at Fayette is awaiting completion and the Company plans to drill two new projects, one in Louisiana and one in Mississippi this fall. The Spring Hill #1 well has been recompleted and production jumped from 10 BOPD to 50 BOPD.

The Company has adequate cash and cash flow to fund its program for fiscal 2013.

Two new projects are being undertaken, one in Conordia Parish, Louisiana (Clayton Prospect) and one in Adams Co., MS (Carthage Point Prospect).

The total number of shares outstanding as at October 31, 2012 and December 20, 2012, is 50,584,144. As of October 31, 2012 and December 20, 2012, there were 2,750,000 stock options outstanding. As there is no vesting schedule attached to the stock options, all options are exercisable. There were no warrants outstanding as at October 31, 2012 or December 20, 2012. Assuming all outstanding stock options be exercised, the Company would receive additional proceeds of $CDN 275,000. The expiration date of the outstanding stock options is October 14, 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 will revert in 2013 and drop from 100% WI to 74.5WI. KG Is confident that production will continue to increase as the new areas are drilled in 2013 and, should exceed pre-payout production. Two new areas – Clayton in Concordia Parish, La, and Carthage Point in Adams Co., MS will be tested and put on production in the first half of 2013. In addition, new areas are being leased which should be tested during the summer and fall of 2013.

JonnyR512 01-07-2013 03:34 PM

Level 2 looking great, we can triple from here in a heartbeat. With an update on La Fayette coming out this month and other drill results, this can easily be acheived.


Level 2 Quote




Market Maker

Shares

Bid Price

Ask Price

Shares

Market Maker





30,000

0.050

0.065

98,000





251,000

0.045

0.100

12,000





51,000

0.040

0.150

12,000





100,000

0.035

--

--

--




120,000

0.030

--

--

--




20,000

0.025

--

--

--




240,000

0.020

--

--

--




100,000

0.015

--

--

--




200,000

0.010

--

--

--




400,000

0.005

--

--

--

ptiscog 01-08-2013 10:18 AM

KFG.V has been showing support around 0.05 and resistance in the 0.06 price range. Price and moving averages has closed above its Short term moving average. Short term moving average is currently above mid-term; AND above long term moving averages. From the relationship between price and moving averages; we can see that: This stock is BULLISH in short-term; and BULLISH in mid-long term.
http://canada.stoxline.com/q_ca.php?s=kfg.v

JonnyR512 01-17-2013 11:13 AM

KFG stakes well locations at Fayette, Carthage Point

2013-01-17 07:37 MT - News Release



Mr. Robert Kadane reports

SPRING HILL #10 WELL STAKED AT FAYETTE FIELD, JEFFERSON COUNTY, MS

KFG Resources Ltd.'s subsidiary, KFG Petroleum Corp. of Natchez, Miss., has staked location for the Spring Hill No. 10 well at the Fayette field in Jefferson county, Mississippi.

The reprocessed 3-D seismic data have pinpointed several new shallow features at Fayette. The company has staked a location (Spring Hill No. 10 well) due east of the Spring Hill No. 2 well because the new seismic interpretation indicates the field extends to the east. A 4,100-foot test will be drilled when weather permits. KFG owns a 100-per-cent working interest in these wells, reverting to a 74.9-per-cent working interest after payout.

Carthage Point, Adams county, Miss.

KFG has staked location for the MacNeil No. 2 well at Carthage Point. KFG has an 8-per-cent working interest in this well, reverting to a 20-per-cent working interest after payout. The No. 1 well has excellent oil shows in the Campbell sand, but was pinched out in the objective Stewart B sand. The No. 2 well will be drilled to 6,300 feet and will be started when weather permits.



If Springhill #10 does what #1 did, we could get some decent production out of there. Results from Spring Hill #1

KFG Resources Ltd.'s subsidiary, KFG Petroleum Corp. of Natchez, Miss., has recompleted the Spring Hill No. 1 well, at Fayette Field, Jefferson county, Mississippi. The well was recompleted by flowing and pumping 120 barrels of oil through a 10/64-inch choke. The pumping unit has been modified and the well will produce at a rate of 55 barrels of oil per day for several weeks before gradually increasing the rate.


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