Why would SER have a report written up about there company and give it a valuation

Teton have made an offer but was turned down according to the AGM

Read notes here, a short snippet taken from someone who went to the AGM read the last Paragraph

English Bigblls - 8 May'06 - 19:01 - 3 of 15471

Notes from the AGM
------------------------------

Production:
- All wells back online, current production about 180bpd
- surface equipment upgraded by adding more tanks which cost $40,000 each. They now have the capacity for a lot more production (no exact rates given)
- next step is to link up a pipeline to Tapia which will cost around $400,000 but should remove the need for any more surface tanks and allow much higher increases in production

Current trading:
- Profitable and cash-flow positive
- Weren't intending to issue a trading statement before the interims but after several people asked for one it looks like they may be going to do one.
- Interims will be out end of September / early October

Funding:
- Looking at debt financing first, banks are coming to them, someone offered them $10M a while ago but consider that too much at this time.
- Possibly going to get a JV partner later whereby an other company (maybe Teton, or other similar co's) will take a % of Tapia for X million and pay their way.
- Don't expect any institutions to buy in until the interims

- Karl Arleth had to leave because his company (Teton) made an offer for the company but they turned him down.

Now read this report, it has not been published as yet, Why??? has the company asked to have it valued for sales purposes... does sound that way to me, also there has been a lot of activity in the shares of late, before it was a dead dog.. stinks of a take over

http://www.hardmanandco.com/Research/Sefton_June_2006.pdf

For some reason can only sell 1500 of these. Really looks like a takeover is coming doesn't it!!

good morning

Sefton Resources Inc
01 August 2006

SEFTON RESOURCES ('Sefton')

OPERATIONAL STATEMENT

Sefton Resources Inc, reports that first half results to 30 June 2006 will be
announced towards the end of September. The results are expected to show
continued progress, as the Group maintains increasing revenue generation that
was started in the second half of last year.

Production for the first six months of the year at TEG USA (a wholly owned
subsidiary) was somewhat affected during March, April and May by one of the new
wells needing repair work, as this had not been completed correctly when
originally drilled. Production has now returned to previous levels and the Group
has also taken the opportunity of having a workover rig available to undertake
work at its other wells within the field. Surface equipment at Tapia has
continued to be replaced and repaired, increasing its handling capacity by
approximately 2,000 barrels. The infrastructure, all tanks, pipes and lines etc
are in place and comply with the stringent California regulations.

As previously announced Sefton's wholly owned subsidiary, TEG Canada has now
been sold for $450,000 CDN. The proceeds will be used primarily to advance the
group's projects in Kansas.

In Kansas, TEG Mid-Continent now holds 34,000 acres - 27,000 in Anderson/
Franklin and 7,000 in Leavenworth. The majority of the leases are for 5 years
with an option to renew for an additional 5 years. The leases, although mainly
Coal Bed Methane gas prospects, also have conventional oil and gas potential.

Anderson/Franklin counties' 27,000 acres are mainly a Coal Bed Methane (CBM)
play. There are a number of existing shut-in wells in the area that could be
re-entered to test. In addition, existing pipelines together with several pilot
CBM programmes are available to exploit the area's potential.

Leavenworth, east of Anderson/Franklin counties, with 7,000 acres of leases,
should be the easier to open up through available gas pipelines and a number of
non-producing wells within Sefton's leases.

The Directors believe that all of the above provides the Group with the funds
and the cash flow to move forward in the future.

For further information, contact:

John James (Jim) Ellerton, Chairman & CEO Tel: 00 1 303 759 2700

Jeremy Delmar-Morgan, Director Tel: 020 874 84066

David Millham, Investor Relations Tel: 020 779 69999


This information is provided by RNS
The company news service from the London Stock Exchange

Roll on 50p

More or less back to pre-consolidation price now, following yesterday's dip. Quite an encouraging Statement. Probably have to wait until September for any real movement in the SP. Let's hope the news is just as encouraging then and that the movement is up rather than down!

pth

Incidentally L2 3v2, so reasonably healthy. MMs looking for stock, hope they are desperate, might drive the SP up :-)

pth

Looks like the rampers have done a runner. Guess there wasn't much profit to be had afterall in the short term.

I shall just have to talk to myself, at least I can't start an argument that way ;-)

Still good volumes going through, which is encouraging. Maybe SER will buck the trend of stocks falling following a share consolidation? Results in Sept will be interesting, nad hopefully provide longer term value to the SP.

pth

ptholden
Your not talking to yourself I'm reading and still on these long term till we hit the 50p

Hello Driver,
Common sense poster replacing ramping :-) What is the SER world coming to?
Or would that 50p target be considered as ramping?
Who cares? I'm in for the long haul.

pth

Anyone know if the workoVer rig is just for 5 wells from last year,or are ser going to haVe ago at some of the old wells on there acerage.If we can get bopd up to about 600 50p should be on for this time next year.

Still here too and very nice to see the rampers have done a runner. Nice also to see within this BB noone really seamed to get fooled in.

Sorry, don't really know for sure Celby, the trading statement just says 'at its other wells within the field'. I guess from that you could infer it means all of them, but to be sure you would have to ask SER the question.

pth

Ask them! Gary @ Sefton (contact@seftonresources.com) seems to love that kind of question.

What we need now is a decent run on production so they can get the bopd up a bit. Would be nice to see these push past 10p very soon.

Can anyone enlighten me towards the 15 to 1 consolodation. Am i right in saying that the shares are currently cheaper than prior to consodation?


Cheers

Probably ...... perhaps more to the point, there may be support at 7.55 as sp hits 50 dma

CRITCH16
I think the 7.5 = about .48 to .55 but don't worry about it when they get to 10p and beyond pre consolidation will all be forgotten sorry for the ramp.

driver ..... u may be right, but if buying, i would hazard a guess that sp will slip back to 7.5p before it rallies (one hopes)

I was anticipating that hence why i havent bought in yet;)

My view is that it will drop even lower perhaps 7p ish or there abouts which is where i hope to enter.

I will monitor the situation closely.

Many thanks for your replys.

Personally, I don't think you can apply traditional TA to SER at the moment. The 15-1 consolidation has moved the stock into a different arena. Sub 1p stocks have a peculiar attraction; for some reason there is a belief that a SP will double from 0.5p to 1p with far much ease than a SP will move from 10p to 20p. Additionally, investors like to hold 'x' million shares for a relatively small cost rather than 'x' thousand shares at the same price. Hence the oft visible volatility in such stocks. Ergo, my belief that historical TA for SER is currently worthless!

I fully expect SER to whipsaw between 6-10p until the Interims sometime in September, at which point I also expect sub 10p to be a thing of the past. For those who haven't it is well worth reading the Hardman report and visiting the SER web site. We are investing in a PRODUCING oil company, with proven reserves and positive cash flow. This is not a VOG or CHP or GOO who have yet to produce a gallon, this is a company knocking it out on a day to day basis. The daily production will increase, with huff n puff teqniques implemented and even more so when the additonal 9 wells are drilled and become fully operational in the Tapia field. This revenue doesn''t even begin to address the CBM prospects, which as the Hardman report states, could eclipse the revenue from the two oil fields.

There should be significant upside to SER over the next few years and personally I feel a lot more comfortable holding shares in an oil producer rather than an oil explorer.

(Incidentally, I also hold shares in GOO).

All IMHO of course, please DYOR

pth

ptholden
Very interesting post as you know I also hold GOO and was wondering which one to top up on, thats a good point you make about SER being a oil producer rather than an oil explorer and with a smaller M/Cap so it looks like SER has it this time round.

Thanks pth for your comments. As it so happends i also hold GOO but at a loss the now. Hopefully we will see or efforts rewarded in time!

Thanks All