3-D seismic is a technology which began to be used for oil exploration about ten years ago in the Gulf of Mexico . Using the principle of recording echoes from sub-surface geological features, and using sophisticated instrumentation to measure the amount of time required for the echoes to return to their source, a remarkably accurate "picture" can be created of sub-surface geological features located at depths of thousands of feet.

While not infallible, computer images generated from 3-D seismic data can enormously reduce the risk of failure when trying to pinpoint a drilling target, and can likewise maximize the financial return of a successful "wild-cat", by helping to locate the highest point of a geological feature such as a walsortian mound.

Use of 3-D seismic has greatly contributed to the Company's 72% success rate for 18 wells drilled on seven properties in Comanche County, Kansas.

The Company's six active properties in Comanche County are known as the Acres, Bergner-Acres Unit, Lousch, Hackney, Christopher and Ransom Leases. The Ransom 18-1 is the first well drilled on the newly completed 3-D Survey and was put on production in early January, 2002. The well was potentialled for 6,950,000 cu. ft. gas per day and is producing 700,000 CU/F gas per day. A second well, the Ransom 9-1, was completed as a dry hole in December 2001. The structure was there but the reservoir rocks were "tight". A well to test to test the flank of the structure may be drilled in 2003 depending upon the Companys success in raising funding for the venture.

The #1 and #3 Acres wells have recently been successfully reworked. The #1 Acres is producing 260 MCS/D and the #3 Acres is producing 350 MCS/D. KFG has a 17.72% net revenue interest in the Acres Lease.