KFG to Drill Well in Fayette Field
KFG Resources reported that KFG's wholly-owned subsidiary, KFG Petroleum Corporation, is moving in April 1, 2011 to drill the Spring Hill #7 well, a south offset to the Spring Hill #5, to a total depth of 4100'. KFG holds a 100% (74.6% net) in the well until payout of all costs incurred to date in the field. At this writing, $1,200,000US remains to be recovered . At payout, the Company's interest in the field reverts to a 74.6% working interest (59.1% net).
Concordia Parish, Louisiana
The Company has taken a 1500 acre lease in Concordia Parish about 3 miles south of the town of Vidalia, Louisiana. Three 6000' tests will be drilled on the acreage beginning in mid April 2011. The Company will retain a 12.5% working interest in the project and back in after payout for an additional 20% working interest. The wells will be known as The Roundtree #1, #2, and #3. All producing zones in the Wilcox interval will be evaluated.