KFG Reports Operating Profit For Fiscal 1st Quarter Ending July 31, 2014

NATCHEZ, Miss., Oct. 1, 2014 /CNW/ -- Mr. Robert A. Kadane, President of KFG Resources Ltd., reported today that KFG's wholly-owned subsidiary, KFG Petroleum Corporation, of Natchez, Mississippi, had net income of $460,581 for the Company's fiscal First Quarter ending July 31, 2014, compared to $113,525 in the corresponding quarter in 2013.  Gross revenue for the quarter was $904,409, as compared to $582,176 in the fiscal First Quarter of 2013.  The Company had cash on hand of $1,133,429 and a current ratio of 2.1 to 1.  There was no long-term debt.

Adams County, Mississippi

Operationally, the Company's Barnum #2 well, in the Mantua Field, reported initial production of 40 BOPD in mid-September.  After two weeks of production, the well is now producing 140 BOPD from the original perforations at 6,398 feet in the Parker Sand.  The well has several potential zones behind pipe.  Field development will begin in the First Quarter of 2015 after extensive production testing.  The Company's working interest in the well is 9%, jumping to 20.5% at payout.  Additionally, the Craig #4 well has been staked as a southwest offset to the Craig #3 well in the LaGrange Field currently producing 50 BOPD.  The Company's working interest in the Craig #4 is 10%, jumping to 21.5% at payout.

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