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

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.

trading a couple of points up today, mm closed spread .5 on bid,2x more sells than buy and we still end up.looks like theres a buy order to fill ,nice to hold .5 bid we need more confidence going forward so people will hold longer term.

Im holding long term target 6p+ pre consolidation.

If theres a takeover coming and Teton are buying up shares then where the RNS advising they own a significant amount of shares........... Anyone seen it????

They are in the middle of buying the shares arent they.. they are not about to announce it now are they.. get em while they are cheap..

one week until share consolidation,if there is still any oVer hang sellers out there we could still see some more downward trend,im seting my buys at .25-.28 until thing get moVing on more production.this would be about 4p in new shares,its a strange time for oils,there pulling in plenty of cash but the confidence has gone.

The Evil One,

"They are in the middle of buying the shares arent they.." Are they really??? "they are not about to announce it now are they..." Affraid they don't have a choice, rules state that all significant holdings have to be announced!!! Well that is unless in the grand sceme of things there holding isn't significant! Also funny as all this buying hasn't pushed the sp up or reduced the overhang one bit.....

Significant ramping rubbish being talked about SER at the moment. What I can say is that I have had a small punt today and had trouble getting my order filled (within the online limit) until a 2 million sell went through. Most of that was taken later on. FWIW I don't believe there is an overhang now, if there was my order would have been filled with no trouble at all.

As far as announcing a notifiable interest is concerned, I believe that the initial Buy order has to be completed before any action is required. However, if anyone knows any different, feel free to correct me.

pth