This stock looks like the most undervalued oil company on the stock exchange. >
Sefton Resources epic SER. It is currently trading at a price of 0.275p valueing the whole company at just 4M.

You might look at the market cap and assume that this company is just an explorer or a shell, but in fact Sefton is producing over 6000 barrels of oil per month with a monthly revenue of over $300k. It's recent work on it's Tapia oilfield exceeded expectations, meaning the company hit it's 200BOPD target 5 months early, and is now expecting resource and production estimates to be further upgraded. This is before it embarks on a steam-assisted programme early next year which
could see production rates multiplied 2-4 times! It is also looking at drilling further wells on the rich Tapia field in the light of the better than expected results.

So why is it only valued at 4M? The primary reason is lack of awareness of the stock, the sub-1p price puts many people off straight away, and a large overhang.

A year or so ago the company was put in financial dire straits by a
well blowout and had to undertake large discounted placings to get
itself back on track, which it has done with a vengeance. However,
some of these placing shares, which represent some 25% of the company
are being sold into the market, depressing the price so that despite the fact that the companies prospects have improved dramatically over
the past year, the price has dropped by nearly 60%.

This makes the company an absolute bargain at these rock-bottom prices. In 6 months time I expect this to be worth 3-5 times the current price. SERIOUSLY.

There is plenty of research to get your teeth into, the best place to start is the website :

www.seftonresources.com

There are 2 excellent articles on Sefton on the following website by Ian Mclelland (Jan/Feb 2006) - well worth a read to get up to speed on this company and it's prospects:

www.proactiveinvestors.com

i have faith in this stock, did top slice[see earlier entry] but have now topped up again at 0.62p this will,IMHO, see the right side of 1p in the near future.
if it makes 2p then i too will being grabbing the money and running.
WDIK, DYOR etc.
Alex
Ps whenever i get into a stock the SP drops so give it a few min and they should be cheaper:-)

robert, you were right, the sp did drop :-) Hope everyone who correctly predicted it would managed to get a few extra before it went back up again. At the end of trading plus 1 hour, it looked to me like there were 6.8M buys against 7.9M sells. Not much of a difference, especially if you consider it by mid price, just @ 6,600. Not worth dropping the market cap of the company by nearly 8%.

In view of this, I think maybe the MMs were trying to get shares back off T10'ers on the cheap, and hopefully when they have soaked them up we will rise towards the AGM next Monday, and hopefully an accompanying rns containing a trading statement at least. All IMHO, of course, and WDIK. DYOR.

Oh, and as an aside, a poster on ADVFN, Quinan, was apparently phoned late this afternoon by Square Mile offering an AIM stock which they reckoned was a good buy/long term hold. It was SER.

Don't get too previous cellby 2p do us a favour? I bought in last week 1m.at .07 although already showing small loss it was expected.Don't ramp just yet lets all just settle in first!.

boxerdog. did say if we get to 2p, i been in these for 3years nealy,so its been a Very long ramp,just turned down 1p.they say going to drill couple more wells this year,thats 7 could be 260 bopd at 55 doller x350 days=5million turn oVer,with around 3 million pre tax profit.thats got to be worth 2p,i haVe been giVing these the ramp since .25 so hope afew out there haVe diped in and out if they want,with there profits thats the game we play enjoy.

boxerdog. did say if we get to 2p, i been in these for 3years nealy,so its been a Very long ramp,just turned down 1p.they say going to drill couple more wells this year,thats 7 could be 260 bopd at 55 doller x350 days=5million turn oVer,with around 3 million pre tax profit.thats got to be worth 2p,i haVe been giVing these the ramp since .25 so hope afew out there haVe diped in and out if they want,with there profits thats the game we play enjoy.

And after the consolidation Cellby the game will be up, no more buys at .25 and quick gainers....... I forget how long I been in these now 3-4 years I would have thought, lets not also forget the steam project which could well do alot more than '7' new wells.

Boxerdog, welcome on board SER, hope you settle in quickly and don't put down roots as many on this thread have done.

i hope we will haVe confidence from new buyers after consolidation,i think its to early and would haVe liked to see more production and profits to boost confidence.they may also be looking for more money by share placeing causing share dilution.

Up 10% keep going nearly back in the black.

if the motion to consolidate is passed at the AGM[monday i believe] any idea of when consolidation might take place?

robertalexander
I think the decision has to be taken first before the date, anyway I have no problem with consolidation it can be very good for the sp just take a look at DNX.

I understand that if the resolution is passed, consolidation will be 'immediate'. I don't know if that means it can occur during the trading day, or will happen on Monday night.

Has anyone herd anything about SER as the price is all over place

Tree shake on the consolidation news I see no reason we knew it was coming.

Consolidation is good news i have topped up @ 59. maybe it is not good news for short term traders. Have they got the consolidation right ? i don't know , what say you '' J ''.

when r there ganno consoladate?is it a good idea to top up before,any thoughts any one

kedar
The price looks good at the moment and a lot have topped up today I think you have missed the low, I would check out the price tomorrow.

Driver 12% loss on the sp today with virtully equal buys and sells. This really does show you how split opion is over the consolidation.

Explosive, could it not be because the large drop in oil price???

I think Sefton suffers the usual small cap problem of lack of newsflow. I think everyone was expecting/hoping that there would be some on the back of the AGM and had bought in anticipation. I think the MM's sensibly, in these situations, drop the price to discourage all the stock that was brought up over the weeks leading up to the AGM suddenly being dumped back on the market.

Please don't beat up on me 'cos I used the word sensible in the same sentence as MM's.

An interesting post


MrJREwingESQ - 11 Jul'06 - 13:30 - 13537 of 13550


Well, friends, I was at the AGM yesterday and I take a completely different view to all of you! (I was in the grey suit with the lemon shirt, grey tie, carrying no bags)

Now, let us start with the present on-site situation.

Until recently, added to the blow-out, possible liability, unsettled compensation, well stability problems, the list is endless, our dear company has hobbled along from one problem to another, begging for money, keeping their surface equipment together with cellotape and nails.

Then, all of a sudden, a remarkable burst of energy!

New equipment! Upgraded and improved storage tanks! More production planned! New pipes! Fire risk removed! CBM actually ready to proceed with, only the time available stopping it!

A nice spit and polish job on the operations if ever I saw one! Hmmmm!

Next, the cash!

A year ago, they were struggling. With all the problems listed above, nobody valued poor little Sefton. The investors complained, the market sniggered and the banks no doubt sat waiting to take possession of a new little asset to add to their portfolio.

But now, we are CASH POSITIVE! We have oil pumping to capacity! Fuel prices at an all time high! Plans to drill more wells! CBM revenues just around the corner!
Banks offering money! Personal loans offered and accepted! Consolidation proposed and accepted! Institutions not required on board yet? Hmmmm!


Now, the company!

Plenty of valuable assets. Plenty of cash. All driftwood (TEG Canada) disposed of. Our Karl having to resign because his involvement meant he could not do business with them whilst placed as a director.

Interestingly, Teton negotiated a $50 million Credit Facility which matures June 15, 2010, secured primarily by the Company's oil and gas assets. Proceeds from the loan are intended to be used for general corporate purposes, working capital, capital expenditures and acquisitions. Last month, they appointed Mr. Robert Bailey to the board who has 40 years engineering and operating experience in the domestic oil and natural gas industry. In May they took on boar a new financial director. This is a company closely bonded with Sefton, who, from Karls involvement know the exact state of play, whos primary play is acquisition, who have the money. Karl, for those of you who were not aware, DOES remain as an outside director for Sefton, so he has still got his foot inside the board room!!!!!!!

Interestingly, Andrew M. Schultz, Vice President of Production, .who was brought in a few months ago, was president of a company whos focus was developing large natural gas plays in the Green River Basin of Wyoming, where he developed various technical methods of analyzing production histories in order to aid in the difficult evaluation of Cretaceous tight gas sands.

Lots of experienced people being brought on in the past few months, I wonder why. Could it be just for lil ol Teton?

Everybody see where I am coming from?

Strangely folks, the 11th Oil and Gas Conference starts on August 14th for three days. Every oiler will be there, including Teton! Its a BIG event for BIG men! Guess what? Sefton arent going!!!!! Heres a link to the event- http://www.theoilandgasconference.com/schedule.html


Yup, I believe the boys are looking to cash in their dollars and start watching the rodeos, cruise around their ranches in their Buicks and earn a well deserved retirement!

And where does that leave us?

A lot richer I hope!

All this is purely my opinion, but I believe I may well be close to the truth.