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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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  2. Ellford

    Ellford New Member

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    Glad to see they've updated their web site as they now look like a legit company.

    What I don't understand is their share price in comparison to WTI Crude prices. As of today, the price of WTI Crude is $49.50 USD. The last time WTI Crude was that price since June/July of 2015 when KFG's share price was over .10/share.

    All other petroleum firms are re-hiring and starting drilling operations again, now that oil is over $40/barrel. But I don't see KFG doing anything and the stagnation of their share price compared to the rising WTI price per barrel doesn't make sense. I'm glad to see Kevin Haney on the board, as I think he's the only person that can turn this thing around (I lost faith in Kadane and Guido when they continued raking in their big $170,000/year salaries when the company was at a standstill (also known as living off the backs of your shareholders)).

    Hopefully we'll see some big news on the drilling front with Haney and turning this company around.
     
  3. kthanx

    kthanx Member

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    This was my concern when I bought and sold the company over a year ago.

    Management did not care about shareholder value this was evident through things such as the website, news releases, and management salaries. I am still on the sidelines for this one. Most of the buying that drove this higher was a single house (presumably Mr. Haney) buying.
     
  4. loubastone

    loubastone New Member

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    New management is on board, we got the new site and we got new presentations...which is much more transparent than this company ever was.

    We are cash flow positive and the company is building its asset base via liquid assets.

    I've been accumulating 4.5-4 cents past few months, love the direction now. How many oil companies/any companies on the venture can say they are cash flow positive at this market cap?

    Lets give the new management team time, it looks like they mean business by already cutting cost!
     
  5. TheDude

    TheDude Member

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    KFG unit seeks financing for drilling in Mississippi

    2016-11-03 13:40 MT - News Release

    Mr. Robert Kadane reports

    KFG Resources Ltd. subsidiary KFG Petroleum Corp., of Natchez, Miss., is in the process of attempting to finance its drilling and development program. The current environment is extremely difficult, and it may be the first quarter of 2017 before sufficient drilling funds have been raised to protect the company's cash position.

    The company has one, possibility two, development wells to drill in Mississippi, but currently, partners and mineral interest owners do not want to drill and sell the oil at current prices, but will be agreeable in the 60-dollar-per-barrel range. The company has assembled two wildcat acreage blocks in Mississippi, but to date, the company has not been able to raise enough capital to justify the dry hole risk involved. The fact that most operators only have year-end budgets and can not project reliable cash flow in the near future, because of fluctuating oil prices, makes planning difficult, but KFG is pursuing all leads.

    KFG would like to acknowledge its new director, Giacomo Grassi, for the work he has done on the company's new website.

    © 2016 Canjex Publishing Ltd. All rights reserved.
     
  6. Ellford

    Ellford New Member

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    I agree with Ioubastone in that things are picking up for this company and everything appears to be moving in the right direction. Really glad to see Kevin Haney appointed as a director as well... I've made a lot of money on this company, so I'd like to see it back up around the .08/share+ range where it should actually be trading due to it's positive cash flow.

    They have a proven business model that works, so we'll see what happens... Glad to see the stock hit .055 last week (briefly)... If the price/barrel continues to rise, then it makes KFG much more lucrative... If they can look to repurpose some new wells this fiscal, then it'll be all good news for KFG.
     
  7. TheDude

    TheDude Member

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  8. TheDude

    TheDude Member

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    LEVEL 2 QUOTE

    Market Maker Shares Bid Price Ask Price Shares Market Maker
    328,000 0.035 0.040 40,000
    212,000 0.030 0.045 121,000
    72,000 0.025 0.050 36,000
    12,000 0.020 0.060 206,000
    18,000 0.015 0.080 42,000
    15,000 0.010 0.090 22,000
    200,000 0.005 0.095 10,000
    -- -- -- 0.250 4,000
     
  9. TheDude

    TheDude Member

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  10. Epicram

    Epicram Member

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    This stock is really going good, waiting for right time to Buy.
     
  11. loubastone

    loubastone New Member

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    @ 4 cents its a great buy

    I am waiting for some other of my plays to run so I can cash out, will be buying another 100k-200k on top of what i have....buy low sell high
     
  12. TheDude

    TheDude Member

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  13. TheDude

    TheDude Member

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  14. TheDude

    TheDude Member

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    KFG Resources' KFG Petroleum to lay off two employees

    2017-05-10 08:32 MT - News Release

    Mr. Robert Kadane reports

    KFG RESOURCES TO ADMINISTER FURTHER COST CUTTING MEASURES

    KFG Resources Ltd. subsidiary KFG Petroleum Corp., of Natchez, Miss., has implemented further cost reductions in order to counterbalance the reduction in oil prices. Starting in June, the company overhead will be reduced as two additional employees are released, saving on salaries and insurance.

    For the month of March, KFG Petroleum produced an average of 65.4 barrels of oil per day from 19 wells. Management is looking at numerous ways to increase shareholder value. However, there can be no assurance that a deal will be reached. KFG's drilling program is slated to start in the summer, pending the stabilization of oil prices and financing from joint venture partners.

    © 2017 Canjex Publishing Ltd. All rights reserved.
     
  15. TheDude

    TheDude Member

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    LEVEL 2 QUOTE
    Market Maker Shares Bid Price Ask Price Shares Market Maker
    65,000 0.040 0.050 51,000
    201,000 0.035 0.055 95,000
    229,000 0.030 0.060 282,000
    152,000 0.025 0.070 20,000
    62,000 0.020 0.100 50,000
    18,000 0.015 -- -- --
    130,000 0.010 -- -- --
    600,000 0.005 -- -- --
     
  16. TheDude

    TheDude Member

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    KFG acquires working interest in Fayette field

    2017-07-12 10:40 MT - News Release

    Mr. Robert Kadane reports

    KFG PURCHASES WORKING INTEREST AT FAYETTE

    KFG Resources Ltd. subsidiary KFG Petroleum Corp., of Natchez, Miss., purchased a 5.47-per-cent working interest in the Fayette field, Jefferson county, Mississippi, effective July 1, 2017. It is payable in three monthly instalments of $20,000 each. Payout, assuming no oil price increases, is 35 months. No debt will be taken on to finance the transaction.

    © 2017 Canjex Publishing Ltd. All rights reserved.
     
  17. TheDude

    TheDude Member

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    KFG Year End Results (Ending April 30th 2017) + Oil Reserves
    All Information Below Can Be Found At www.Sedar.com

    Financials + MD&A Summary + 51-101 Reserve Report

    Balance Sheet Year End

    ASSETS – In US Dollars
    Cash: $593,972
    Accounts Receivable: $229,863
    Prepaid Expenses: $10,497
    Exploration & Evaluation Assets: $119,325
    Property & Equipment: $477,591
    Total Assets: $1,431,248

    LIABILITIES – In US Dollars
    Accounts Payable: $450,679
    Decommissioning Liability: $194,622
    Total Liabilities: $645,301

    Asset/Debt Ratio: 2.2:1

    Revenue
    Oil & Gas: $1,184,011
    Management Fees: $191,979
    Total Revenue: $1,375,990
    Total Expenses: $1,865,689
    Total Loss: $489,699 - $255,012 Depletion & $81,727 Dry hole Expenses
    Loss From G&A: $152,960 – 35% of this from Q1 2016 before initial cost cuts

    MD&A Summary

    Average Yearly Production: 63.87bopd
    Number Of Producing Wells: 22

    Oil prices appear to be stabilizing in the mid $45 to $55 range. In June and July 2016, the Company took initial steps to reduce its overhead by $10,800 per month. Additional cuts were made effective June 1, 2017, letting go of two office personnel, and eliminating their health insurance. In addition, key man insurance on both the President and Vice President was terminated. Total savings account for $8,500 per month going forward. Also the small production purchase should increase oil income $1,700 to $2,000 per month at current prices. In addition, KFG has two leases where it’s working interest is between 6 and 9% (the Craig #3 lease and the Barnum lease). Both leases could possibly payout within the next twelve months unless further drilling takes place. At payout, KFG’s working interest would jump to approximately 22%. If the environment stabilizes and continues to improve, KFG will look for reasonable production purchases.

    Revenue from the sale of oil and gas was $1,184,011 for the year ended April 30, 2017, compared to $1,380,325 for the year ended April 30, 2016. The decrease in revenue was a result of less production during the year.

    Management fee revenue for the year ended April 30, 2017 was $191,979 as compared to $287,841 for the year ended April 30, 2016. The decrease is a result of substantially less work for the Company and others because of low oil prices in the field.

    Dry hole costs and abandonments for the year ended April 30, 2017 were $81,727 as compared to $2,690 for the year ended April 30, 2016. The decrease resulted from the write off of two Mississippi projects that were unsuccessful and impairment charges against the oil and gas properties.

    Lease operating expenses were $440,783 for the year ended April 30, 2017 compared to $553,808 for the year ended April 30, 2016. The decrease in lease operating expenses is a result of suspending lease operations in certain areas.

    General and administrative expenses for the year ended April 30, 2017 were $1,122,564 compared to $1,347,373 for the year ended April 30, 2016. The decrease is a result of terminating two employees during the year and a decrease in insurance premiums.

    Depletion and amortization costs for the year ended April 30, 2017 were $225,012 compared to $540,840 for the year ended April 30, 2016, reflecting depletion on the Company’s reserves. The decrease is a result of a decreased cost base subject to depletion and a reduced depletion rate.

    The Company reported a net loss of $489,699 for the year ended April 30, 2017 compared to net loss of $777,709 for the year ended April 30, 2016, with the lower net loss arising from reduced operating expenses and reduced depletion.

    The total number of shares outstanding as at April 30, 2017 and August 24, 2017, is 50,584,144. As of April 30, 2017 and August 24, 2017, there were no stock options outstanding. There were no warrants outstanding as at April 30, 2017 and August 24, 2017.

    Overall Performance

    Updating to April 30, 2017, KFG moved its offices to 150-A Providence Rd, Natchez, MS. Office rent is unchanged. Two employees were terminated beginning June 1, 2017 and insurance on the two principal officers was dropped with a total savings going forward of $8,500 per month. The Company has completed a small production purchase for $60,000, payable in three monthly installments of $20,000, equal to approximately 5% of the Company’s production in Jefferson Co., MS. The Company has two projects to drill but has not been able to raise sufficient capital to drill the wells without affecting the Company’s cash position dramatically if the projects are not productive.


    KFG 51-101 Reserve Report Ending April 2017
    51-101 2017 Net To KFG (Table 1)
    Oil
    Total Proved Reserves – 80.3 Mbbl
    Probable Reserves – 46.6 Mbbl
    Total Proved + Probable – 126.8 Mbbl
    Natural Gas
    Total Proved Reserves – 4.5 MMcf
    Net Present Value For 2017 (Table 2) - USD
    Total Proved + Probable - $3,635,000

    KFG 51-101 Reserve Report Ending April 2016
    51-101 2016 Net To KFG (Table 1)
    Oil
    Total Proved Reserves – 81.3 Mbbl
    Probable Reserves – 45.8 Mbbl
    Total Proved + Probable – 127 Mbbl
    Natural Gas Reserves – 0
    Net Present Value For 2016 (Table 2) – USD
    Total Proved + Probable - $3,610,000

    KFG 51-101 Reserve Report Ending April 2015
    51-101 2015 Net To KFG (Table 1)
    Oil
    Total Proved Reserves – 72.2 Mbbl
    Probable Reserves – 56.5 Mbbl
    Total Proved + Probable – 128.7 Mbbl
    Natural Gas Reserves – 0
    Net Present Value For 2015 (Table 2) – USD
    Total Proved + Probably - $5,140,000 **Higher oil prices**
     
  18. TheDude

    TheDude Member

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    KFG Q1 2017 Results (Ending July 31st 2017)

    All Information Below Can Be Found At www.Sedar.com

    Balance Sheet End Of Quarter (All Funds in US Dollars)

    ASSETS – In US Dollars
    Cash: $615,926
    Accounts Receivable: $216,881
    Prepaid Expenses: $10,700
    Exploration & Evaluation Assets: $129,941
    Property & Equipment: $499,002
    Total Assets: $1,472,450

    LIABILITIES – In US Dollars
    Accounts Payable: $473,577
    Decommissioning Liability: $195,125
    Total Liabilities: $668,702

    Revenue For Q1
    Oil & Gas: $241,204
    Management Fees: $82,096
    Total Revenue: $323,300
    Total Expenses: $305,499
    Net Income: $17,801

    Average Daily Production For Q1: 65.47bopd
    Number Of Producing Wells: 19
    Average Oil Price: $46.86

    **Notes**
    - Cost reductions did not commence until June ( As per May 10th News)
    - Production purchase reduced cash by $40,000 for Q1 and $20,000 for Q2

    MD&A Highlights

    Overall Performance

    For the three months ended July 31, 2017, the Company had cash flow from oil and gas production of $159,687, compared to $101,647 for the three months ended July 31, 2016. Oil production increased from 60.88 BOPD to 65.47 BOPD, and gas production increased 1.28 MCF per day. The average price of gas increased $0.27 per MCF and the average price of crude oil increased $4.27 per bbl when comparing the three months ended July 31, 2017 and July 31, 2016.

    As of July 31, 2017, two instalments of the production purchase in Jefferson County, MS have been paid with the remaining instalment to be paid by the end of September. As of now, the Company is optimistic that one of its new projects will be drilled in October 2017 weather permitting.

    As of July 31, 2017, the Company generated $93,291 of cash provided by operations versus a loss of $113,517 in cash in the comparable quarter of 2016, and was able to show an actual increase in cash after all expenditures. The Company’s current rate of assets to liabilities is 1.78 and its quick ratio is 1.3.

    Outlook

    The Company production has been stable in the past year showing minimal decline. Oil prices appear to be slowly increasing into the low $50/bbl range. In June and July 2016, the Company took initial steps to reduce its overhead. Management salaries were cut and a field hand was let go resulting in a savings of about $9,000 per month going forward. Reduced insurance amounted to a savings of $1,100/month. Office reductions, rent and parking were reduced affecting a savings going forward of $10,800/month in salaries and overhead. Additional reductions were made in June 2017, amounting to another $8,500 per month. The Company is now generating free cash flow amounting to $93,291 in the quarter ending July 31, 2017 and is starting to move forwarding raising money for its drilling program.

    Share Capital

    The total number of shares outstanding as at July 31, 2017 and September 28, 2017, is 50,584,144. As of July 31, 2017 and September 28, 2017, there were no stock options or warrants outstanding.

    Additional information pertaining to the Company is available on the SEDAR website at www.sedar.com
     
  19. TheDude

    TheDude Member

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  20. TheDude

    TheDude Member

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    KFG to drill 7,200-foot wildcat well in Mississippi

    2017-10-19 07:41 MT - News Release

    Mr. Robert Kadane reports

    KFG TO DRILL 7200' WILDCAT WELL, ADAMS COUNTY, MS

    KFG Resources Ltd.'s subsidiary, KFG Petroleum Corp. (Natchez, Miss.), is set to drill a 7,200-foot wildcat well in Adams county, Mississippi, testing several Wicox sands that have produced in the immediate area. The Hogue Estate No. 1 well is located in Adams county, Mississippi, on a 300-acre lease burdened with a 25-per-cent royalty, leaving the company with a 75-per-cent net revenue interest. KFG has taken on partners, will have no exposure in the drilling of the well to total depth, and will recover approximately $10,000 from reimbursement for the leases plus a $10,000 overhead charge. If productive, the company will back in after payout for a 12-per-cent working interest with no outlay of completion expenses.

    In addition, the company closed the purchase, effective Oct. 1, 2017, of a 1-per-cent working interest in several of its operated wells in Mississippi, which will have an immediate impact on cash flow.

    © 2017 Canjex Publishing Ltd. All rights reserved.
     

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