KFG Resources Ltd. will restart its drilling program in Mississippi and Texas this summer, assuming oil prices stabilize around $40/bbl. 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% to 15% working interest in the projects. Also, the Company is pumping a well and salt water well in Wilkinson County, Mississippi, where it doesn't own an interest but will collect an overhead fee going forward, operating the wells for other individuals. As a inal note, company overhead is being looked at with an eye toward reducing costs.