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KFG.V - KFG Resources Ltd.

Discussion in 'Canadian Stocks Message Boards' started by TheDude, Apr 13, 2016.

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  1. TheDude

    TheDude Member

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    This was a popular thread on the old website and unfortunately much of the prior information has been lost. Below is the most recent information that was posted on HSM prior to the change over.

    KFG Q3 Results(Ending January 31st 2016)

    My Notes:
    - Results will be compared quarter over quarter to see changes
    - MD&A will include a thorough analysis of costs this quarter
    - All costs will be disclosed to the market
    - Dale lease had issues and is also being sold
    - Two new employees were hired

    I strongly recommend that all KFG shareholders contact the company to find out why major costs such as salaries and general expenses have not been reduced given this environment.

    Robert Kadane(CEO) – Email: [email protected]
    Telephone Number (Denver) – 303-825-7081
    Telephone Number (Natchez) - 601-446-5219

    Stock Price: $0.045
    Common Shares: 50,584,144
    Insider Holdings: 17%
    BOPD: 93.94(Average over 9 months)
    Average sales price: $45.79

    Financial Results( All in US Dollars)

    Assets
    Q3 and Q2
    Cash: $1,031,922 (Q2: $1,818,812)
    Receivable: $196,422 ($239,482)
    Prepaid Expenses: $53,726 ($33,225)
    Reclamation Bond: $20,000 (same)
    Property & Equipment: $1,150,377 ($992,051)
    Total Assets: $2,452,477 ($3,103,570)
    **Cash decreased by almost $800,000 in the quarter and equipment increased $158,000**

    Liabilities
    Accounts Payable: $576,526 ($1,007,729)
    Decommissioning Liability: $235,489 ($235,060)
    **Payables decreased by $430,000 in the quarter**

    Q3 Revenue/Q2 Revenue
    Sales: $434,751 ($481,125)
    Expenses: $655,100 ($688,262)
    Quarter loss: $220,349 ($207,137)

    Expense Breakdown for Q3 and 9 months:

    Automotive: $22,062($44,150)
    Depletion/Amortization: $76,912($264,262)
    Dry Holes: $0($2,691)
    Insurance: $26,321($83,374)
    Lease Expenses: $206,865($545,799)
    Office/Misc: $54,135($236,660)
    Rent: $4,794($15,213)
    Salaries(Employee/Directors combined): $263,463($630,521)

    Director Salaries Only:
    2016 - $255,600 - Divided by 3 quarters, it’s $85,200 primarily between two directors
    2015 - $259,331

    Last year CEO Rob Kadane earned less: http://www.bloomberg.com/research/stocks/people/person.asp?personId=10117277&privcapId=3162946

    - This does not included the heavy insurance costs as stated in the 2015 AGM paper

    Overall, KFG’s cash dropped by almost 50%, but at the same rate so did liabilities. However, the company increased it’s equipment/assets by $158,000 without mentioning what was purchased.


    MD&A Results

    KFG had cash at January 31, 2016 of $1,031,922. Although oil prices have collapsed, the Company, through the nine months ended January 31, 2016, continues to generate positive cash flow. Two recent wells should help continue the trend. The Company will continue to manage its cash resources and will complete its current drilling program as soon as prices warrant further drilling. In addition, the Company is increasing its inventory of projects seeking longer term leases. The Drouet Poole Estate #1 well and the Barnum #4 well are adding to production but are somewhat offset by crude oil prices at $35/bbl.

    As of the end of March 2016, the Company’s Barnum #4 and Drouet Poole Estate well continue to produce at 80 BOPD and 30 BOPD, respectfully,. Both wells should be offset during the summer of 2016. At present, high water is preventing that. Also our MacNeil #1 and #2 wells in Adams County are shut in because of high water. As the summer approaches with all wells back on and without the operating expenses of the Dale lease, KFG should have positive cash flow assuming the price of crude oil stabilizes.

    Revenue from the sale of oil and gas was $1,020,590 for nine months ended January 31, 2016, compared to $1,938,528 for the nine months ended January 31, 2015. The decrease is a result of a collapse in the price of crude oil.

    Management fee revenue for the nine months ended January 31, 2016 was $401,709 as compared to $330,010 for the nine months ended January 31, 2015. The increase is a result of more workovers and work for other operators.

    Lease operating expenses were $545,799 for the nine months ended January 31, 2016 compared to $469,408 for the nine months ended January 31, 2015. The increase in lease operating expenses is a result of problems at the Dale lease which is being sold.

    General and administrative expenses for the nine months ended January 31, 2016 were $1,020,918 compared to $1,004,597 for the nine months ended January 31, 2015. The increase is a result of two new employees.

    The Company reported net loss of $220,349 for the three months ended January 31, 2016 compared to net loss of $119,394 for the three months ended January 31, 2015, with the increase in net loss a result of the reduced price of oil and slightly higher operating costs.

    Paid or accrued rent of $15,213 (2015 - $14,392) to a company controlled by G. Stephen Guido, an officer and Director of the Company.

    Paid or accrued $262,881 (2015 - $18,168) in property and equipment, dry hole costs, and lease operating costs to Mississippi Drilling Inc., a company controlled by G. Stephen Guido, an officer and Director of the Company.

    Included in accounts receivable is $2,962 (April 30, 2015-$70,777) and in accounts payable and accrued liabilities is $nil (April 30, 2015 - $11,240) due from/to Mississippi Drilling, a company controlled by G. Stephen Guido, an officer and Director of the Company.

    Included in accounts receivable from co-owners is $5,369 (April 2015 - $18,204) due from Geronimo Corporation, a company controlled by G. Stephen Guido, an officer and Director of the Company and $23,695 (April 2015 - $19,562) from Robert Kadane, Director and officer of the Company.

    Outlook

    The outlook going forward from March 2016 is clouded by the price of crude oil. If crude oil stabilizes in the $38-$42 range, the shallow program will proceed with the drilling of two shallow wells as will KFG”s drilling program in Mississippi started with the Barnum lease.

    Since KFG has no long term debt, the Company is looking to buy production if it can be purchased at reasonable prices. All lease obligations have been extended so there is no danger of losing any projects. Currently, the main problem is raising capital for drilling projects but that should improve with price stability.

    At present, our primary objective is to build shareholder net asset value. Capital is available throughout the industry for mergers and acquisitions and management is dedicated to finding and developing projects in the best interests of all shareholders.
     
  2. hollyhunter

    hollyhunter Member

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    RSI (14)is in bull territory, which stands at 41.59 with positive bias.
     
  3. Ellford

    Ellford New Member

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    I'm starting to wonder if the lack of media on KFG is a sign that there are negotiations where it's being taken over by one of the big boys... It's one of the few companies with no debt and actually makes money at $20/barrel as it's not your standard crude they drill, but West Texas Intermediate (WTI). Otherwise I can't see why they're not releasing any news/media announcements as the last one was several months ago.
     
    TheDude likes this.
  4. TheDude

    TheDude Member

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    LEVEL 2 QUOTE

    Market Maker Shares Bid Price Ask Price Shares Market Maker
    291,000 0.040 0.045 76,000
    296,000 0.035 0.050 202,000
    162,000 0.030 0.065 1,820,000
    49,000 0.025 0.075 1,292,000
    12,000 0.020 0.080 936,000
    395,000 0.005 0.085 379,000
    -- -- -- 0.090 23,000
    -- -- -- 0.100 22,000
    -- -- -- 0.115 5,000
    -- -- -- 0.150 5,000
     
  5. TheDude

    TheDude Member

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    KFG news release and level 2 below it:

    KFG Resources to restart drilling in summer

    2016-05-06 11:33 MT - News Release

    Mr. Robert Kadane reports

    KFG OPERATIONS & DRILLING PROGRAM UPDATE

    KFG Resources Ltd.'s subsidiary, KFG Petroleum Corp. of Natchez, Miss., will restart its drilling program in Mississippi and Texas this summer, assuming oil prices stabilize around $40 per barrel.

    It is anticipated that the Stockfeldt well will be completed and two projects drilled in Mississippi, as well as two projects in Texas. KFG will retain a 12-per-cent-to-15-per-cent working interest in the projects.

    The company's fourth quarter, ending April 30, 2016, saw the lowest oil prices of the year ($27 to $28 per barrel); however, currently, prices have rebounded to the mid-$40s per barrel. Also, production was shut in on the company's two MacNeil wells in Adams county, Mississippi, because of high water, making it impossible to sell the oil. During the quarter, the company's Dale lease in Concordia parish, Louisiana, was sold, eliminating substantial monthly operating expenses versus minimal income.

    Also, the company is pumping a well and saltwater well in Wilkinson county, Mississippi, where it does not own an interest but will collect an overhead fee going forward, operating the wells for other individuals. As a final note, company overhead is being looked at with an eye toward reducing costs.

    © 2016 Canjex Publishing Ltd. All rights reserved.

    Market Maker Shares Bid Price Ask Price Shares Market Maker
    183,000 0.040 0.045 125,000
    234,000 0.035 0.050 159,000
    241,000 0.030 0.060 210,000
    49,000 0.025 0.080 16,000
    12,000 0.020 0.090 23,000
    10,000 0.010 0.100 22,000
    395,000 0.005 0.135 4,000
    -- -- -- 0.150 5,000
    -- -- -- 0.180 16,000
    -- -- -- 0.200 4,000
     
  6. TheDude

    TheDude Member

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    LEVEL 2 QUOTE

    Market Maker Shares Bid Price Ask Price Shares Market Maker
    43,000 0.040 0.045 184,000
    394,000 0.035 0.050 131,000
    501,000 0.030 0.060 210,000
    149,000 0.025 0.080 16,000
    12,000 0.020 0.090 23,000
    10,000 0.010 0.100 22,000
    405,000 0.005 0.135 4,000
    -- -- -- 0.150 5,000
    -- -- -- 0.200 4,000
     
  7. TheDude

    TheDude Member

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    I'm surprised there's no action on KFG given that drilling is going to resume, stockfelt should be online soon, costs are being reduced and KFG was already profitable before the cuts at around $40 a barrel. Not like there are new sellers anyway, level 2 has roughly remained the same.

    LEVEL 2 QUOTE

    Market Maker Shares Bid Price Ask Price Shares Market Maker
    321,000 0.035 0.045 184,000
    401,000 0.030 0.050 131,000
    149,000 0.025 0.060 210,000
    12,000 0.020 0.080 16,000
    10,000 0.010 0.090 23,000
    495,000 0.005 0.100 22,000
    -- -- -- 0.135 4,000
    -- -- -- 0.150 5,000
    -- -- -- 0.200 4,000
     
  8. TheDude

    TheDude Member

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    LEVEL 2 QUOTE

    Market Maker Shares Bid Price Ask Price Shares Market Maker
    100,000 0.035 0.040 201,000
    906,000 0.030 0.045 103,000
    420,000 0.025 0.050 10,000
    287,000 0.020 0.070 15,000
    83,000 0.015 0.080 26,000
    10,000 0.010 0.090 23,000
    300,000 0.005 0.100 22,000
    -- -- -- 0.130 2,000
    -- -- -- 0.145 5,000
     
  9. Ellford

    Ellford New Member

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    KFG Resources Announces Adoption of Advance Notice Policy

    NATCHEZ, Miss. , June 27, 2016 /CNW/ -- KFG Resources Ltd ("KFG Resources" or the "Company") today announced that its Board of Directors has adopted an advance notice policy regarding the nomination of directors (the "Advance Notice Policy"). The purpose of the Advance Notice Policy is to provide shareholders, directors and management of the Company with a clear framework for nominating directors of the Company.

    The Advance Notice Policy, among other things, includes a provision that requires advance notice to the Company in certain circumstances where nominations of persons for election to the Board of Directors are made by shareholders of the Company. The Advance Notice Policy fixes a deadline by which such director nominations must be submitted to the Company prior to any annual or special meeting of shareholders and sets forth the information that must be included in the notice to the Company. No person will be eligible for election as a director of the Company unless nominated in accordance with the Advance Notice Policy.

    In the case of an annual meeting of shareholders, notice to the Company must be made not less than 30 days and not more than 65 days prior to the date of the annual meeting; provided, however, that, in the event that the annual meeting is to be held on a date that is less than 50 days after the date on which the first public announcement of the date of the annual meeting was made, notice may be made not later than the close of business on the 10th day following such public announcement.

    In the case of a special meeting of shareholders called for the purpose of electing directors (whether or not called for other purposes), notice to the Company must be made not later than the close of business on the 15th day following the day on which the first public announcement of the date of the special meeting was made.

    The full text of the Advance Notice Policy is available on SEDAR at www.sedar.com. The Advance Notice Policy is effective and in full force and effect as of the date it was approved by the Board of Directors on June 20, 2016 .

    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 accuracy of this release.


    SOURCE KFG Resources Ltd
    Contact: Robert A. Kadane, (303) 825-7081
     
    TheDude likes this.
  10. Ellford

    Ellford New Member

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    This Advanced Notice Policy is actually quite an interesting adoption and provides "shareholders" more power within the company... I know of a major shareholder that could now be elected by the board through this policy and significantly turn the confidence rating around in a short time, due to their experience and current holdings in the oil & gas sector... Could prove quite interesting in the very near future...
     
    Deepglue and TheDude like this.
  11. TheDude

    TheDude Member

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    Some sold volume this week, not too much for sale over $0.05 now:

    LEVEL 2 QUOTE
    Market Maker Shares Bid Price Ask Price Shares Market Maker
    5,000 0.045 0.045 161,000
    238,000 0.035 0.050 24,000
    666,000 0.030 0.080 20,000
    329,000 0.025 0.090 23,000
    142,000 0.020 0.100 22,000
    18,000 0.015 0.130 2,000
    10,000 0.010 0.145 5,000
    470,000 0.005 -- -- --
     
  12. TheDude

    TheDude Member

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    We got some life today, over 1 million shares traded and level 2 is looking much better:

    LEVEL 2 QUOTE

    Market Maker Shares Bid Price Ask Price Shares Market Maker
    231,000 0.045 0.050 55,000
    462,000 0.040 0.055 10,000
    416,000 0.035 0.060 29,000
    896,000 0.030 0.065 40,000
    314,000 0.025 0.070 57,000
    72,000 0.020 0.075 30,000
    18,000 0.015 0.080 42,000
    470,000 0.005 0.125 10,000
    -- -- -- 0.140 2,000
    -- -- -- 0.150 78,000

    Last drill update tells us we should be drilling now:

    KFG Resources to restart drilling in summer

    2016-05-06 11:33 MT - News Release

    Mr. Robert Kadane reports

    KFG OPERATIONS & DRILLING PROGRAM UPDATE

    KFG Resources Ltd.'s subsidiary, KFG Petroleum Corp. of Natchez, Miss., will restart its drilling program in Mississippi and Texas this summer, assuming oil prices stabilize around $40 per barrel.

    It is anticipated that the Stockfeldt well will be completed and two projects drilled in Mississippi, as well as two projects in Texas. KFG will retain a 12-per-cent-to-15-per-cent working interest in the projects.

    The company's fourth quarter, ending April 30, 2016, saw the lowest oil prices of the year ($27 to $28 per barrel); however, currently, prices have rebounded to the mid-$40s per barrel. Also, production was shut in on the company's two MacNeil wells in Adams county, Mississippi, because of high water, making it impossible to sell the oil. During the quarter, the company's Dale lease in Concordia parish, Louisiana, was sold, eliminating substantial monthly operating expenses versus minimal income.

    Also, the company is pumping a well and saltwater well in Wilkinson county, Mississippi, where it does not own an interest but will collect an overhead fee going forward, operating the wells for other individuals. As a final note, company overhead is being looked at with an eye toward reducing costs.

    © 2016 Canjex Publishing Ltd. All rights reserved.
     
  13. TheDude

    TheDude Member

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    Some insider buying yesterday:


    As of 11:59pm ET July 20th, 2016
    Filing
    Date Transaction
    Date Insider Name Ownership
    Type Securities Nature of transaction Volume or Value Price
    Jul 20/16 Jul 20/16 Haney, Kevin Direct Ownership Common Shares 10 - Acquisition in the public market 5,000 $0.050
    Jul 20/16 Jul 20/16 Haney, Kevin Direct Ownership Common Shares 10 - Acquisition in the public market 10,000 $0.050
     
  14. TheDude

    TheDude Member

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    LEVEL 2 QUOTE

    Market Maker Shares Bid Price Ask Price Shares Market Maker
    4,000 0.050 0.050 50,000
    310,000 0.045 0.055 60,000
    295,000 0.040 0.060 25,000
    316,000 0.035 0.065 20,000
    686,000 0.030 0.070 57,000
    194,000 0.025 0.075 30,000
    72,000 0.020 0.080 42,000
    18,000 0.015 0.085 8,000
    470,000 0.005 0.090 22,000
    -- -- -- 0.125 10,000
     
  15. Ellford

    Ellford New Member

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    A million shares traded, insider buying, and no official news announcement - something big is happening...

    About time to see this one turn around... Also nice to see the bid/ask prices moving up in line with comparable petroleum producers that are actually producing... Can't wait to see this one bounce back to .10-.12/share which is it's average...
     
  16. TheDude

    TheDude Member

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    1 / 37,000 0.04 0.045 70,000 / 2
    9 / 423,000 0.035 0.05 91,000 / 3
    18 / 1,036,000 0.03 0.055 80,000 / 2
    12 / 499,000 0.025 0.06 10,000 / 1
    4 / 80,000 0.02 0.065 35,000 / 2
    2 / 43,000 0.015 0.07 37,000 / 2
    2 / 370,000 0.005 0.075 34,000 / 2
    -- -- 0.08 117,000 / 3
    -- -- 0.085 8,000 / 1
     
  17. TheDude

    TheDude Member

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    LEVEL 2 QUOTE

    Market Maker Shares Bid Price Ask Price Shares Market Maker
    451,000 0.035 0.045 69,000
    476,000 0.030 0.050 67,000
    499,000 0.025 0.055 80,000
    190,000 0.020 0.060 86,000
    43,000 0.015 0.065 20,000
    370,000 0.005 0.070 37,000
    -- -- -- 0.075 30,000
    -- -- -- 0.080 42,000
    -- -- -- 0.090 22,000
    -- -- -- 0.095 10,000
     
  18. loubastone

    loubastone New Member

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    https://www.canadianinsider.com/company?menu_tickersearch=kfg


    As of 11:59pm ET October 4th, 2016Filing
    DateTransaction
    DateInsider NameOwnership
    TypeSecuritiesNature of transactionVolume or ValuePriceOct 3/16Oct 3/16Grassi, GiacomoDirect OwnershipCommon Shares97 - Other379,000 Oct 3/16
    Sep 30/16Grassi, GiacomoDirect OwnershipCommon Shares00 - Opening Balance-Initial SEDI Report920,000
    Jul 20/16Jul 20/16Haney, KevinDirect OwnershipCommon Shares10 - Acquisition in the public market5,000$0.050
    Jul 20/16Jul 20/16Haney, KevinDirect OwnershipCommon Shares10 - Acquisition in the public market10,000$0.050
    Create a free Canadianinsider.com account to see up to 6 months of filings
     
  19. loubastone

    loubastone New Member

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  20. TheDude

    TheDude Member

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    KFG Resources appoints Haney, Grassi as directors

    2016-10-07 07:38 MT - News Release

    Mr. Robert Kadane reports

    KFG RESOURCES LTD. APPOINTS HANEY, GRASSI TO THE BOARD OF DIRECTORS

    KFG Resources Ltd. has appointed Kevin Haney and Giacomo Grassi to its board of directors. The following are brief biographies of KFG's new directors.

    Mr. Haney has over 20 years of experience in the oil industry with experience as a director for Bird River Resources, a public oil exploration company. Today, Mr. Haney owns a private company with an oil and investment division. He currently holds 6,055,000 common shares, or approximately 12 per cent of the outstanding shares of KFG Resources.

    Mr. Grassi has over a decade of combined experience in retail, wholesale and marketing in multiple industries, along with mineral exploration in Canada. He holds a BA degree from the University of Calgary and a graduate gemologist diploma for the Gemological Institute of America. Mr. Grassi currently holds 1,299,000 common shares, or approximately 2.6 per cent of the outstanding shares of KFG Resources.

    Robert Kadane, president of the company, would like to thank former directors Keith Pople and Michael Raftery for their 22 years of service on behalf of KFG Resources.

    © 2016 Canjex Publishing Ltd. All rights reserved.
     

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