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

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.

Cheers 2000 good post.

Thanks driver it was not my post i picked it up from another site. it was from a MrJREwingESQ

Another post to draw your own conclusions from MrJREwingESQ



MrJREwingESQ - 11 Jul'06 - 17:48 - 13705 of 13733


Fellow Seftonairs! Read and be calmed!

Let us all first examine the facts as we understand them!

Our beloved company has stated that a successful drilling campaign last summer and oil
production from new drilling work should boost cash flows and SIGNIFICANTLY help towards continued organic growth! So, this year we can expect little in the way of borrowing, this confirmed at the AGM.
They have confirmed plans for SAGD which is likely to more than double the ultimate oil recovery from Tapia Canyon Field from 3.7million barrels to 7.5million barrels and will explore Eureka Canyon Field using modern techniques to identify overlooked but still productive oil zones. So, on top of the 7.5 million barrels, the probability of more!!!!!

Their Forest City Basin acreage extends to 31,000 acres and recent reports indicate that it may be some of the most prospective in the area. So, again, excellent potential!

The Hardman report mentions that the CBM potential could eclipse the oil, which is already a long term play for Sefton, as gas production is seeing a thriving market.
It appears the land containing the CBM has been purchased at the right price too. We are now aware from the AGM that the company are further ahead than we knew with preparations for the initialisation of recovery here and are only looking for a window of opportunity to commence work.

Unless a take-over is agreed, I would expect the relationship between Jim Ellerton and Karl Arleth to transpire into a partnered venture in the CBM recovery which will lead to another revenue stream for Sefton without ANY investment or resources being used, allowing full oil production to be continue uninterrupted.

Their oil production is looking extremely positive for the next six months, with mention of up to 9000 bopm by year end. The present valuation is looking even more ridiculous compared to exploration companies who have yet to pump their first barrel.

Hardman predict that if Sefton continue at their present levels, a re-rating is INEVITABLE!

The AGM has, by way of a slip of the tongue, opened debate of a possible take-over.

With the present potential, this is a very strong possibility.

We have paid for assets, profitable production, ongoing potential for CBM and reserves stretching for years ahead.

We have a company run by people who are nearer to retirement than eager youth.

We have an opportunity to realise exceptional value for shareholders without the wait.

I fully expect to see an RNS in the very near future about EITHER a take-over, or at the very least, an agreement on a joint venture which will expedite the CBM recovery and not cause Sefton any financial input.

The Market will not be able to restrain this share for much longer, it is teetering on the edge market manipulation when all the fundamentals point to a much, much higher valuation than the level it has been held at.

Its true, the market can't restrain itself from selling this stock!! Anyone think .35 is a good deal to get in???? I'd say so can't see this going to .30 but there and again who knows!!

Would someone kindly tell me what effect the stock consolidation will have on the share price. Is the common stock to be consolidated the same stock that can be bought on LSE?

austing2253
Yes its the same stock you just have less no one knows the effect on the sp but it should be a good thing for them to do it brings them from being a minnow to a stock with a bit more muscle compelled with updates and more news the share should get more noticed with bigger backers making the sp rise, thats the theory anyway.

Thank you driver, so the 15:1 at month end will be for both the common stock and the ordinary shares?

At 76$ a barrel doesnt seem to be doing much for ser

austing2253
Yes the same you will just have less. And the new price will be what ever it is on the day M/Cap divided by shares between 7p to 10p I think. .

could this have a significant rise even before consolidation?has that known to happen

kedar
Yes no reason why it shouldnt in fact Im surprised its not past the 1p with the oil at $76

Closed at 47 67 does that mean they don't want you to buy ? is there a big buy order to be filled?

anyone read the new thread[started by the evilone]? dont recognise the players on the thread and was wondering if their views are sound or are they ramping?
[it does all sound a bit too good to be true[and in my experience if it sounds too good to be true then it normally isnt!]
Alex
ps a bit rude not putting their tuppence worth on thread don't you think?
pps i am still holding cos a) i think SER are worth it and b) i dont mind if i am wrong about the evilones views as it is a win win scenario in the long term

I DONT THINK there is a takoVer comeing soon,we will just haVe to wait it out,this year is our best yet in profit,waiting for more drilling,coal bed gas in the wings,steaming to start sometime.there is eVen some untaped gas in the oil field and waiting new surVeys of tapia,could be some good finds on the rest of there lands.07 is going to top this year with the actiVity to come,theres more chance we could bid for another oiler to put on some growth. still dont think consolidation is great idea,we haVe 1.5 billion shares thats not to many now we are growing.here are afew oilers gown from same position,fao,blr,sterling energy,fto,nop.theres plenty more,

Re: Takeover afoot
opthalmist


The True Jedi - you did not go to the AGM either - you have picked up on a few sentences from what other people have said ie me.

But yes, you're correct - JE definitely did say Karl Arleth CEO of Teton had to leave his post at Sefton because he (as CEO of Teton) made an offer for the company, which they turned down as they considered it "ridiculously low" (his words).

REALLY, SO WHY DO A VALUATION FOR A COMPANY IF ITS NOT UP FOR SALE AND WHY MENTION THE OFFER IN THE AGM..

NUMPTY, ITS UP FOR SALE

There is normaly a Valuation of a company to proVe up the assets to raise cash against the new Valuation. 3.5p is a bit high maybe sometime in 07 when things get moVing.snails pace only for sefton.