It is the Company’s intention to develop the field’s shallow oil and gas reserves as Phase I of the redevelopment of the Fayette Field, said Robert A. Kadane, KFG Resources’ president At this writing, a deep well (a 9,800-foot lower Tuscaloosa test) is planned for the last quarter of 2009.
The company has assembled a block of around 4,100 acres. KFG Resources has farmed out all working interests in the field area in all undeveloped acreage and owns a 79.1666% net revenue interest until all cost of seismic, land, and drilling have been improved.
At that time, KFG Resources’ working interest will revert to a 74.9% and its net revenue interest will be 59.3%. The timing of the conversion will be based on the success of the drilling efforts.
