KFG Logs Solid First Half Fiscal 2014

NATCHEZ, Miss., Dec. 30, 2014 /CNW/ -- KFG Resources President, Robert A. Kadane, reported today that the Company's subsidiary, KFG Petroleum Corporation of Natchez, MS had revenue from the sale of oil and gas of $1,491,772 for the six months ended October 31, 2014 compared to $1,129,981 for the six months ended October 31, 2013. Management fee income was $220,523 for the period compared to $211,028 for the corresponding six month period in 2013. The Company reported net income of $611,881 for the six months ended October 31, 2014 compared to $238,365 for the comparable 2013 period.  The Company had cash on hand of $1,836,298 with total liabilities of $764,620. Current assets were $2,271,974. The Company's operating costs per barrel for the six month period ending October 31, 2014 were $18.85 per barrel. Free cash flow for the period was $991,000 after all expenses.

Operationally, the Craig #4 well had oil shows but it was not considered commercial. KFG's drilling program for calendar 2015 will be unaffected by the decline in oil prices to date. KFG anticipates drilling activity to resume in February 2015 with the drilling of three wells starting with offsetting the Company's Barnum #2 well in Adams Co., MS and continuing with two shallow wildcats in Franklin Co., MS.

The Company's common shares are listed on the TSX Venture Exchange. Vancouver, B.C. Trading  "KFG".

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

 

SOURCE KFG Resources Ltd.

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