KFG Resources Ltd.'s subsidiary, KFG Petroleum Corp., Natchez, Miss., is participating in a 6,050-foot Wilcox test operated by Bay Gas LLC, in Concordia Parish, La. It comprises a 280-acre lease with a 25-per-cent royalty burden. KFG has a 2.5-per-cent working interest. Drilling is under way.
In Saskatchewan, KFG's interest at West Hazel continues to perform well with current production between 160 to 170 barrels of oil per day. KFG owns a financial interest through Hillcrest Petroleum equal to 11.25 per cent. Plans are being finalized for drilling on the lease and will be reported in the near future.
In addition, KFG is involved in a directional project with Bay Gas, in Wilkinson county, Mississippi, and details will be forthcoming when the location dries out enough to support a drilling operation, probably in October at this writing.