Robert A. Kadane, President of KFG Resources Ltd., reported that the Company's wholly-owned subsidiary, KFG Petroleum Corporation drilled an 11,300-foot Lower Tuscaloosa well in Amite County, Mississippi, offsetting a Denbury CO2 flood in the Smithdale Field. The Company drilled a well in the channel margin and encountered 6' of oil sand on water. The upper part of the sand was too tight to produce so the well was abandoned. Consideration is underway to drill a west offset. KFG is operator and has a 5% working in the lease block.

Adams County, Mississippi

In the LaGrange Field, KFG operated and drilled a 6,400-foot Wilcox test - logged and cored three oil sands. Production casing has been set to 6,400' for a completion attempt in the Wilson Sand at 6,248'. The well also encountered 12' of oil sand in the Baker sand at 6,223' and 5' of oil sand in the McKittrick Sand at 6,156'. KFG owns a 10% working interest in the well and surrounding 160 acres.

Tags: KFG Resources