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

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

pth---I had a speculative punt on SER and I hold other oilies including GOO,PET,CHP & PELE, but SER is the one with less invested and being near breakeven I now feel if there is weakness around 6-7p I will bolster my holding. Hardman report was a good read. Incidentally your 1st paragraph is spot on.
2517

Nice to see the rampers have faded away. Long may it last

Haven't looked in for a day, but I come back to find that the other SER thread has got above this one. I actually find the headers on both out of date and if there are no objections, I'll start a more current affair, including a chart or two.

Didn't see the fall yesterday, but a nice rise today to get us back to where we were.

pth

plese do pth

Are we going to close this thread and go over to pth's new thread ?