KFG Resources Ltd. (KFG)

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ig17
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Re: KFG Resources Ltd. (KFG)

Post by ig17 »

BVal77 wrote:I started buying end of 2012 and I'm still adding right now.
Why do you keep posting about the stock if you are still adding? It's in your best interest to stay quiet. The longer it remains cheap, the better it is for you.

Colour me suspicious.
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Re: KFG Resources Ltd. (KFG)

Post by BVal77 »

ig17 wrote:
BVal77 wrote:I started buying end of 2012 and I'm still adding right now.
Why do you keep posting about the stock if you are still adding? It's in your best interest to stay quiet. The longer it remains cheap, the better it is for you.

Colour me suspicious.

Because I have been buying this stock for a long time and already have a large enough position that if it took off I wouldn't care. But since the price has pulled
back I am going to keep increasing my position as I get paid every couple weeks from my job. It's smarter to buy on weakness rather than on strength.

I don't understand lots of you posters on here, getting all concerned about me when KFG's books are on SEDAR. If you think I'm lying, go there and check it out
for yourself. Here I can step you through it since the books don't lie;

1. http://www.sedar.com
2. Click on company profiles and then the letter K
3. Find KFG, click view company documents, put in the anti-spam code

There you go, all the upto date information from the company. Please humour me ladies and gentlemen, go through their stuff and then pull something out that I
haven't posted and call me a liar for it. If you can find something, I will delete this thread and leave the forum and never bother you again. But if you can't then
obviously I'm not a pumper and just trying to have a conversation about a penny stock that could very well be one of the few capable of growing into something
bigger.

Just a tip for people reading this. Whenever someone gives you a stock pick, never credit/discredit the company until you've done your own research(called due
diligence). Because otherwise your going on assumption and that's just being ignorant. Another thing, there's a very strong negative stigma when it comes to
the price of a stock, and investors think that the more expensive it is, the better it is. This is a terrible way to think and your reason for buying should be to maximize
on profitable situations, which means getting in before a company starts moving up and selling at a proper price point. No company is immune to price corrections
and dividends shouldn't justify purchasing a company that has an outrageous P/E ratio. EPS is more important in my books and not having debt on the balance sheet.
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Re: KFG Resources Ltd. (KFG)

Post by Taggart »

Perhaps it will work out for some investors in the long run, but future projections "alone" wouldn't interest me. I have to see some sort of history that would get me excited enough to buy when it's cheap. OK, it has plenty of cash on the balance sheet and no debt.

I'll leave this one for others.
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Re: KFG Resources Ltd. (KFG)

Post by westcoastfella »

BVal77 wrote: I don't understand lots of you posters on here, getting all concerned about me when KFG's books are on SEDAR. If you think I'm lying, go there and check it out
for yourself. Here I can step you through it since the books don't lie;
I don't understand why you are so concerned that everyone look at the books and follow you to the kool-aid stand. The fact that you want so badly for everyone to jump on this bandwagon is an instant red flag to me, and whether or not you intend it, smells of a good ol' pump-and-dump. The fact that you "have a large enough position that you wouldn't care if it took off" suggests that you probably want the stock to now take off so you can begin to see some profits, hence your desire to drum up visibility.

I took a quick look at the financials on Sedar myself, and already noticed one small discrepency with your previous numbers. While they did indeed earn 900K in their most previous quarter, only ~750K of that was from direct sales of O&G, there is 150K or so of "management fee" revenue as well. I don't know what that revenue is from and could not find anything in my brief research.

ig17 is right - if there is a really good thing here its in your interests to stay quiet and build a massive position. Have a look at the "what did you buy..." thread, you'll note that most people report what they did, not what they are going to do. To my knowledge, there are relatively few people here interested in speculative junior oil exploration companies, so that alone might explain the lack of interest in this thread.

Best of luck with your investment.
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Re: KFG Resources Ltd. (KFG)

Post by BVal77 »

Taggart wrote:Perhaps it will work out for some investors in the long run, but future projections "alone" wouldn't interest me. I have to see some sort of history that would get me excited enough to buy when it's cheap. OK, it has plenty of cash on the balance sheet and no debt.

I'll leave this one for others.

Taggart, thank you for the respectable reply and I understand that you would like to see a longer term trend and performance report on KFG with their current status. You are the only
one so far that has posted a proper reply rather than throwing me in the slammer for not posting a large cap stock.
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Re: KFG Resources Ltd. (KFG)

Post by BVal77 »

westcoastfella wrote:
BVal77 wrote: I don't understand lots of you posters on here, getting all concerned about me when KFG's books are on SEDAR. If you think I'm lying, go there and check it out
for yourself. Here I can step you through it since the books don't lie;
I don't understand why you are so concerned that everyone look at the books and follow you to the kool-aid stand. The fact that you want so badly for everyone to jump on this bandwagon is an instant red flag to me, and whether or not you intend it, smells of a good ol' pump-and-dump. The fact that you "have a large enough position that you wouldn't care if it took off" suggests that you probably want the stock to now take off so you can begin to see some profits, hence your desire to drum up visibility.

I took a quick look at the financials on Sedar myself, and already noticed one small discrepency with your previous numbers. While they did indeed earn 900K in their most previous quarter, only ~750K of that was from direct sales of O&G, there is 150K or so of "management fee" revenue as well. I don't know what that revenue is from and could not find anything in my brief research.

ig17 is right - if there is a really good thing here its in your interests to stay quiet and build a massive position. Have a look at the "what did you buy..." thread, you'll note that most people report what they did, not what they are going to do. To my knowledge, there are relatively few people here interested in speculative junior oil exploration companies, so that alone might explain the lack of interest in this thread.

Best of luck with your investment.

I don't want anyone to forcefully follow me, it's just a separate thread and for those that might be interested, then that's why I'm posting it. Not forcing anyone to buy/sell or do a due diligence. All I'm saying is that
if your going to slander a stock because it's trading at a certain price or not upto par with your standards, then that's wrong. Show me in detail or through proper research that what I'm saying is either 1)wrong 2) fabricated
or a downright lie. Everything I've posted is either from news or financials, nothing more.

They did $750k in oil revenue and $150k in management fees. KFG has a very good deal with the partners. The JV associates pay for 100% of the drilling costs and KFG get's an automatic earn in, which then increases after
payout. Now included in this deal is a management fee of these wells, and KFG charges the partners per well every month. So they have two streams of revenue.


Listen, if my posts are offending a lot of people or bothering you because it doesn't fit with the "criteria" of the forum, then I won't post anymore and I will accept that. But I don't accept being called a pumper, liar, spammer,
none of that because it isn't true. I take great offence to that.
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Re: KFG Resources Ltd. (KFG)

Post by AltaRed »

BVal77 wrote:Listen, if my posts are offending a lot of people or bothering you because it doesn't fit with the "criteria" of the forum, then I won't post anymore and I will accept that. But I don't accept being called a pumper, liar, spammer,
none of that because it isn't true. I take great offence to that.
This is a Financial Wisdom Forum where investors meet for financial education and empowerment. It is primarily for people interested in DIY financial planning, building portfolios, retirement and estate planning and the like. This has never intended to be a stock forum, albeit there is a sub-forum for stocks, bonds, etc for investors to discuss individual investments. There are probably other forums around primarily dedicated to stocks, including small stocks like KFG, that virtually everyone here does not care about.
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Re: KFG Resources Ltd. (KFG)

Post by BVal77 »

AltaRed wrote:
BVal77 wrote:Listen, if my posts are offending a lot of people or bothering you because it doesn't fit with the "criteria" of the forum, then I won't post anymore and I will accept that. But I don't accept being called a pumper, liar, spammer,
none of that because it isn't true. I take great offence to that.
This is a Financial Wisdom Forum where investors meet for financial education and empowerment. It is primarily for people interested in DIY financial planning, building portfolios, retirement and estate planning and the like. This has never intended to be a stock forum, albeit there is a sub-forum for stocks, bonds, etc for investors to discuss individual investments. There are probably other forums around primarily dedicated to stocks, including small stocks like KFG, that virtually everyone here does not care about.

Ok, that's all I needed to know. Thank you for answering that.
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Re: KFG Resources Ltd. (KFG)

Post by Mike Schimek »

The 20 year track record looked horrible, though recent earnings did look interesting.

I'll probably poke my nose deeper into this stock over the weekend and post back here -)

I appreciate you posting up your opinion on this stock, you never know when you might come across a hidden gem.
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Re: KFG Resources Ltd. (KFG)

Post by Mike Schimek »

I tried looking at this and can't really get a feel for the company, I have no useful comments to add to what bVal has posted up, it looks like he's spent a lot of time analyzing this company and anyone interested should look at what he posted up.
Research until your head hurts then scream Banzai!!! and charge fearlessly to victory or death!
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Re: KFG Resources Ltd. (KFG)

Post by BVal77 »

Mike Schimek wrote:I tried looking at this and can't really get a feel for the company, I have no useful comments to add to what bVal has posted up, it looks like he's spent a lot of time analyzing this company and anyone interested should look at what he posted up.

Mike, thanks for looking into the company. This is my last post about KFG, but just wanted to share an article with everyone that came out today about the company. Has some information
about their drilling programs and recent news releases.

http://www.pinnacledigest.com/blog/pinn ... -50-monday

Best of luck to everyone on here and lets hope the markets can get out of this correction sooner than later.
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Re: KFG Resources Ltd. (KFG)

Post by BVal77 »

Hello everyone,

Been a month since I posted and I'm not going to tout or even mentioning anything new that happened with KFG. But after today's slaughter with the oil price drop, it's amazing to see how a $7 million market cap(decently liquid) stock can hold up better than 99% of the other known oil stocks. Just goes to show how doing your own research(due diligence), even a small cap can outperform a large cap. Spoke to several analysts and people in the industry about when A) oil price will come back B) market correction will end for the TSXV and it's a long ways away. But I can promise you that buying the right company that can run off it's own revenue, your bound to have a good shot at surviving the downturn and prospering once things come back. Right now the only oil companies that will survive as the ones that either have a massive cash reserve OR can produce at $40 barrels total cost per barrel or less.

That's all for now, maybe I will post again in the new year.

Best of luck to everyone and Happy Holidays!
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Re: KFG Resources Ltd. (KFG)

Post by BVal77 »

Due to a few private messages from posters on here that I received over the last month, I will still be keeping this thread upto date with news, events and so forth. I am very happy to see that there are still people interested in looking for small cap growth stories in the market. I know the TSXV has been decimated, but that doesn't mean there are bad stocks out there. 2015 will be the end to many companies, but 1 in 50 could still come back with a nice return, obviously news, results, acquisitions would be the catalyst for this. I looked on Stockwatch the other day and there are over 1000 stocks trading under $0.07c on the TSXV, sadly 90% of them won't be around by the end of 2015. But it's upto the investor to do a proper due diligence through SEDAR and using search engines to research directors and what they bring to the table for these juniors.

Anyway, enough about my rant. KFG released their Q2 results on December 22nd and as expected they had another profitable quarter. Below I have made a brief summary of their financials and also taken some highlighted points from the management discussion and added a few things at the end. The Barnum 2 well and Parker 5 made this quarter more expensive on a cost basis, but this will decrease for Q3. Also, the big surprise was that operating costs per barrel of oil was
less than $20. Please see below:

KFG Q2 Results Ending October 31st 2014:

Assets
Cash: $ 1,836,298 ($0.036c in cash compared to $1.14 million in July 2014)
Receivables: $403,296
Prepaid Expenses: $32,380
Reclamation Bond: $20,000
Property & Equipment: $1,222,247
Total Assets: $3,514,221

Liabilities
Accounts Payable: $726,247
Deposits from Co-Owners: $38,373
Total Liabilities: $764,620 (Down from $1,042,050 in Q1)

Revenue after 6 months (2 Profitable Quarters)
Oil and gas: $1,491,772
Management Fees: $22,523
Total Revenue: $1,712,295
Total Costs: $1,100,414

Net Income: $611,881 (Net Income was $238,365 in 2013)
EPS= $611,881 / 50,584,11 = $0.012c

Wells in production: 25
Average production in Q2: 104bopd (75bopd was Q1, increase of 29bopd of 28%)
Average Price: $101 per bbl - LLS(Louisiana Light Sweet oil, premium to WTI)
COST per barrel - $18.85/bbl

Management Discussion and Analysis Highlights
The Company is a small independent energy company engaged in the development of onshore oil and gas reserves with activities concentrated in Concordia and Catahoula Parishes, Louisiana, Adams, Jefferson, and Wilkinson Counties, Mississippi and Comanche County, Kansas.

Overall the Company has recovered from giving up 25% of its interested in the Fayette Field wells at payout. Currently, with the MacNeil wells and Craig wells at payout, revenues are on a growth pattern again. The Company was able to grow just utilizing cash flow. Several new projects are in the pipeline and the Craig #3 well will payout in the next few months increasing that revenue stream. KFG will have no problems financing growth through its internal cash flow throughout the remainder of its fiscal year ending April 30, 2015. In addition, the Barnum #2 well is on production as of mid September 2014. The Craig #4 well was recently completed as a dryhole. With the Company’s current cash position and a quick ratio of 2.5, the Company is in a good position to weather the current collapse in oil prices from about $84 in October 2014 to around $55 - $60/bbl at this writing and will still show positive cashflow. The Company’s operating cost per bbl is currently $18.85/bbl.

The Company reported net income of $611,881 for the six months ended October 31, 2014 compared to net income of $238,365 for the six months ended October 31, 2013, with the increase in net income a result less operating expenses plus better prices for oil and new oil from the Craig and McNeil bases due to increased working interest in the wells as well as total overhead charges remaining virtually unchanged.

The Company reported net income of $151,781 for the three months ended October 31, 2014 compared to net income of $124,840 for the three months ended October 31, 2013, with the increase in net income a result less operating expenses plus new oil from the Craig and McNeil bases due to increased working interest in the wells.
( Barnum 2 likely reduced our net income this quarter as this was an expensive well)

During the quarter ended October 31, 2014, the Barnum #2 well was completed producing in excess of 100 BOPD. The Company has a 9% working interest in that well jumping to 16% at payout. The Company plans to offset that well in February 2015 as well as drill two new prospects. Gross income from oil sales increased 15% in spite of declining prices.

Outlook
Production at Fayette is stable and has started a slow decline. With the Dale lease back on production and new production coming off the Craig and Parker leases, KFG will have adequate internal cash flow to develop existing leases as well as support several new prospects in the coming months. Unless the price of oil collapses, the Company will generate sufficient capital to fund its requirements throughout 2014 internally. The Company’s outlook for the next six months is positive. With a current ratio of 2.97, KFG is well positioned to proper during this period of much lower oil prices. At this writing, no projects will be put off or delayed. The Company anticipates its 2015 drilling program starting in February 2015.

Share Capital
The total number of shares outstanding as at October 31, 2014 and December 22, 2014, is 50,584,144. As of October 31, 2014 and December 22, 2014, there were no stock options or warrants outstanding.

(My Notes)
Wells that are approved and still need to be drilled next year:

Fayette Well - Announced September 11th 2014
Seale Well - Announced November 5th 2014
Wall 1 Well - Announced November 5th 2014
Barnum 3 Well - Announced November 5th 2014
Wall 2 Well - Approved through Mississippi Legislature, to be announced soon
Jones Flower Well - Approved through Mississippi Legislature, to be announced soon

Craig 3 and Barnum will pay out soon which will add instant production to KFG.
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Re: KFG Resources Ltd. (KFG)

Post by Peculiar_Investor »

BVal77 wrote:I will still be keeping this thread upto date with news, events and so forth. I am very happy to see that there are still people interested in looking for small cap growth stories in the market.

<snip>

But it's upto the investor to do a proper due diligence through SEDAR and using search engines to research directors and what they bring to the table for these juniors.
Given that you seem to only post about a single junior company, it occurs to me to ask you to disclose any relationship you might have with KFG Resources? Consider this part of my due diligence to understand your singular focus of posting about one company that reads very promotional to this reader.
Anyway, enough about my rant. KFG released their Q2 results on December 22nd and as expected they had another profitable quarter. Below I have made a brief summary of their financials
It is customary on this site to post a link to the company's results news release and add your commentary, rather than copy-and-pasting substantial portions of the article without proper attribution to the source.
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Re: KFG Resources Ltd. (KFG)

Post by BVal77 »

Peculiar_Investor wrote:
BVal77 wrote:I will still be keeping this thread upto date with news, events and so forth. I am very happy to see that there are still people interested in looking for small cap growth stories in the market.

<snip>

But it's upto the investor to do a proper due diligence through SEDAR and using search engines to research directors and what they bring to the table for these juniors.
Given that you seem to only post about a single junior company, it occurs to me to ask you to disclose any relationship you might have with KFG Resources? Consider this part of my due diligence to understand your singular focus of posting about one company that reads very promotional to this reader.
Anyway, enough about my rant. KFG released their Q2 results on December 22nd and as expected they had another profitable quarter. Below I have made a brief summary of their financials
It is customary on this site to post a link to the company's results news release and add your commentary, rather than copy-and-pasting substantial portions of the article without proper attribution to the source.
In regards to your two questions:

I don't have any relationship with KFG Resources. Yes I do own a few shares(250,000 that I bought early September) which I am holding longterm, but it's not really promotional. What bothers me the most is that investors always write off small cap companies because they trade for pennies or don't have big books, which is a terrible way to think. Then it's always assumed that anyone posting about a cheap stock is a scammer which is also wrong. I see more value in early growth stage companies rather than buying some large cap stock where you need massive moments over several years to make it worth your while. Obviously there are exceptions to this, but I am focusing on KFG because I don't bother posting about one shot crap shoots. Right now on the TSXV we are going to see hundreds of companies delist in the next 12 months because they cannot support themselves and financing is very hard to complete for most juniors. But there are a couple good stocks still left that have revenue and clean balance sheets which can not only ride out this disaster but also keep growing. So I don't see why it's so tough on this forum to actually post about one of these stocks by posting their FACTS and then putting my own opinion about it.

I would love to just put a link, and I already agreed with the moderator that any NEWS, EVENT, ARTICLE, will strictly be posted via LINK. But as you know through Sedar, you can't just post one directly to the MD&A or financials. Then of course the typical investor doesn't care to read through pages of notes which a vast majority they don't understand. Everything I posted is 100% EXACTLY the same as was mentioned in the Sedar filings this week. The numbers, right down the exact dollar. So for anyone interested in this stock, I am doing a favour for them by posting the financials because you can't copy/paste it like that and then the key MD&A points I post which I think is fair since I cannot just link it to a PDF.

But here's the closest you can get with a link. Click on the MD&A or Financials, put in the code and scan through the filings. You'll see that I made this the same: http://www.sedar.com/DisplayCompanyDocu ... o=00006016
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Re: KFG Resources Ltd. (KFG)

Post by BVal77 »

BVal77 wrote:
Peculiar_Investor wrote:
BVal77 wrote:I will still be keeping this thread upto date with news, events and so forth. I am very happy to see that there are still people interested in looking for small cap growth stories in the market.

<snip>

But it's upto the investor to do a proper due diligence through SEDAR and using search engines to research directors and what they bring to the table for these juniors.
Given that you seem to only post about a single junior company, it occurs to me to ask you to disclose any relationship you might have with KFG Resources? Consider this part of my due diligence to understand your singular focus of posting about one company that reads very promotional to this reader.
Anyway, enough about my rant. KFG released their Q2 results on December 22nd and as expected they had another profitable quarter. Below I have made a brief summary of their financials
It is customary on this site to post a link to the company's results news release and add your commentary, rather than copy-and-pasting substantial portions of the article without proper attribution to the source.
In regards to your two questions:

I don't have any relationship with KFG Resources. Yes I do own a few shares(250,000 that I bought early September) which I am holding longterm, but it's not really promotional. What bothers me the most is that investors always write off small cap companies because they trade for pennies or don't have big books, which is a terrible way to think. Then it's always assumed that anyone posting about a cheap stock is a scammer which is also wrong. I see more value in early growth stage companies rather than buying some large cap stock where you need massive moments over several years to make it worth your while. Obviously there are exceptions to this, but I am focusing on KFG because I don't bother posting about one shot crap shoots. Right now on the TSXV we are going to see hundreds of companies delist in the next 12 months because they cannot support themselves and financing is very hard to complete for most juniors. But there are a couple good stocks still left that have revenue and clean balance sheets which can not only ride out this disaster but also keep growing. So I don't see why it's so tough on this forum to actually post about one of these stocks by posting their FACTS and then putting my own opinion about it.

I would love to just put a link, and I already agreed with the moderator that any NEWS, EVENT, ARTICLE, will strictly be posted via LINK. But as you know through Sedar, you can't just post one directly to the MD&A or financials. Then of course the typical investor doesn't care to read through pages of notes which a vast majority they don't understand. Everything I posted is 100% EXACTLY the same as was mentioned in the Sedar filings this week. The numbers, right down the exact dollar. So for anyone interested in this stock, I am doing a favour for them by posting the financials because you can't copy/paste it like that and then the key MD&A points I post which I think is fair since I cannot just link it to a PDF.

But here's the closest you can get with a link. Click on the MD&A or Financials, put in the code and scan through the filings. You'll see that I made this the same: http://www.sedar.com/DisplayCompanyDocu ... o=00006016
Maybe it looks as if I'm trying to hide something or fabricate what's really going on, but I advise everyone interested in this stock to go to Sedar, Sedi, Canadian Insider and do your own due diligence about the company. Whenever I'm given a stock
pick, I never write it off. But of course I will go research the stock myself afterwards and if what that person told me is true, then I decide whether or not I should buy it. Reason why I like KFG so much is because it's an EPS stock and since the 2011 peak of the juniors on the TSXV, only EPS stocks have made significant gains through self sustained revenue and growth. Have a look for yourself at these companies: PHO.V, NCI.V, IWG.V, and recently CZO.V. People bought into these companies because they make money. Now someone might say KFG is risky because they are in oil and gas. Well yes there's always risk, but the fact that KFG's operating cost per barrel is $18.85(As stated in the MD&A) and they are growing production on a quarterly basis along with cash reserves, well that's pretty good if you ask me. Even this drawback on oil prices, KFG clearly states that it does not affect their 2015 drill schedule. Tell me of one other oil junior that can say the same thing and I will go buy it. I'm not a greedy person where I have to keep a stock hidden so I can horde it for years. I like working with other investors and sharing ideas and trying to make sense of the near ideal way to buy stocks. Large caps are much easier but the payout isn't nearly as good as a small cap. But to invest in small cap you need to know how to do a proper due diligence. So I like to write and post a lot and I hope other posters on here can one day understand that and not stress that I am making something up or fabricating the truth.
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Re: KFG Resources Ltd. (KFG)

Post by BVal77 »

I thought about it and for future posts on quarterly reports, all I will do is post the actual numbers, point form some key notes and then post the Sedar link. I think that will make everyone happy here and there will be no more
copy/paste whatsoever.
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Re: KFG Resources Ltd. (KFG)

Post by BVal77 »

Company update came out not too long ago:

http://www.newswire.ca/en/story/1468033 ... iscal-2014
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Re: KFG Resources Ltd. (KFG)

Post by BVal77 »

KFG is back to drilling, 3 wells to do in the next few weeks. Pretty hard for any oil stock to be drilling now, especially a junior. But when your operating cost is $18.85 per barrel and your just racking up
profits, why stop? Partners are the key and they still made $30 net back on $50 oil and since they pay for 90%, it's fine for KFG to keep adding more revenue every month.

News here: http://www.newswire.ca/en/story/1475025 ... ng-program
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Re: KFG Resources Ltd. (KFG)

Post by Dudsy »

KFG Resources
13 trades over the last week, average daily trading value $1,870
Market Cap = $4.5 million
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Re: KFG Resources Ltd. (KFG)

Post by BVal77 »

Nice volume today on KFG and price appreciation. Sure oil stocks are in the dog house right now, but the best juniors deserve attention. KFG released their Q3 results this week and the company still grew it's cash position by $300,000 with revenue cut in half and 3 dry wells over the winter. Now they have 2 that are being put online and 6 more to drill just in May-June. Their cash position has gone from $1 million to over $2 million (US Dollars) just from operations this year. No bank debt, no dilution, this is the junior stock you want to buy and leave in your portfolio so that down the road you can get an 8 to 10 bagger on it. If you look at the financials on Sedar, there are no other $5 million market cap companies this secure right now who physically announce that lower prices won't curtail operation. When your operating cost is $18.85 a barrel and your JV partners pay for everything, how can you lose? pretty hard.

I know most people on this board are conservative, but this is that spec stock that has the ability to become something else. But you have to buy it and then leave it alone in your portfolio. Call it your "aggressive" pick if you wanted to.
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Re: KFG Resources Ltd. (KFG)

Post by OnlyMyOpinion »

Fair enough, but not my cup of tea. I see a junior that has been around for 20 years, still producing modest volumes from modest wells in mature areas. They are producing 95 bopd from 25 wells (up from 78 bopd form 20 wells). If you have the misfortune to have an expensive workover on a low rate well, your profit can be gone for the next year. In the meantime they are making a buck, and the principals may even be making a decent living, but for an investor to see good growth on a real and sustained basis they would need to add some solid new pool discoveries - it could happen, and as they say "if you don't play you can't win"... But now I'm just speculating.
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Re: KFG Resources Ltd. (KFG)

Post by AltaRed »

This is baically a mom and pop operation, likely thousands like them in the USA plunking away at the edges in mature areas that first had holes punched 100 years ago or so. Over 50 million shares issued and assets of only $3.7million. This company last updated its website in Nov 2014 (pass through link to SEDAR for financials). This is penny stock territory......
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Re: KFG Resources Ltd. (KFG)

Post by BVal77 »

Couple updates on here recently. The company got delayed on their last couple wells due to some nasty rains in the south, but one is producing at 98bopd and the other one they are trying to figure out which zone is the best producer since they hit several. Then after that KFG is doing 4-6 wells between late May and mid June. Currently production is around 125bopd, up from 75bopd last year. I think with these next wells, they company will be over 200bopd and I still maintain my target of 300bopd or more by December. Because if they already did 4 wells this year, have 4-6 to go, I'm pretty certain they'll be doing another set of wells between September and December.

Sure lots of you see it as a very small cap, but that's how big money is made in these markets. Buy in before the company is fully valued and established. Look at PHM, that was a 4c stock back in 2013 with $500,000 yearly revenue and a major loss. Look at it 18 months later...40 bagger. Earnings stocks always will as long as the fundamentals of cost remain constant.

Their cash position has doubled in 9 months and that was made strictly off cash flow. Now at $2.13 million US, once converted to Canadian, it's trading at half the cash value. No bank debt, so KFG can just keep drilling over and over. I spoke with the company and their partners are amazing because they'll keep drilling as long as they get paid back in 12 months on a well.

For example the Craig 5 that was announced last week, 98bopd and 21% interest to KFG. Total cost for that well was $250k, KFG paid $52k and everyone gets paid back within a few months on it. Operating cost per barrel is $18.85 or less so its good.

The reason I like this so much is because drilling will increase yearly and it's inevitable that KFG builds a significant production position over the next year or two. I saw an ad recently that someone in Mississippi was trying to sell a 30bopd well with a salt water disposal and wanted between $2-2.2 million USD. That means ever well KFG creates is worth at least $60,000USD. I know lots of oil men and they value companies based on flowing barrel.

Lack of volume doesn't bother me because it means that lots of the cheaper shares have been accumulated and the stock is waiting to push up to a proper price range.
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Re: KFG Resources Ltd. (KFG)

Post by BVal77 »

A new article was released this weekend talking strictly about KFG Resources from Penny Stock Experts. It's a good read.


http://pennystockexperts.com/attractive ... attention/
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