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

This is gold dust : An update from Jeremy Delmar-Morgan courtesy of a poster on another site:


Who wants an update. JDM kindly called me back after parking his car on his mobile. Beforehand, copper came by so quickly said he would call back.

Anyway things are looking good, as per usual. 220 bopd on average (6500 per month - up slightly by the sounds of things).

At Ventura Basin sand was being sucked up through pipe and causing problems so a consultant has devised a new technique called gravel packing to prevent this.

Overhang about another 6 weeks but still negotiating with seller.

Various rns's will be released over the next few months regarding developments since certain decisions were made at various meetings during his trip.

JDM with Oilbarrel one day next week.

End of year results are going to be announced, hopefully, at the end of March. They are also chatting about changing year end date.

Monument discussions over land titles still proceeding.

Signing off by insurance companies on blow out is imminient and all parties are in agreement. Then they will sue drilling company and hope to get at least $200,000 costs back but nothing is ever certain.

JDM implied he is going to buy more shares as they are undervalued - especially under .3p.

Time for someone to reach into their pockets and put in an order or 20M or so?

MJ

It would be a record but hopefully Sefton should get more 'pro-active' news wise over the new year...

Agree with you next 3mth should be interesting...

Have a good weekend.

666

How many shares in the overhang?

<100M now?

If he said 6 weeks, that's 30 trading days, lets say average 2M per day = 60M overhang?

However he also said "various RNS's will be released over the next few months" which you would expect to increase volumes and hence erode the overhang at a faster rate. So lets say 100M tops?

I think next week could see some good rises.

Just a hunch.

mj - thats a good hunch especially as SERs sp always picks up at year end.

ready for lift off

looking good already. 1mil mm buy bery interesting

Good trading day again today, just need that bid to rise now, and we can pretty much say we are on a new uptrend.

Julian1976 - "looking good already. 1mil mm buy bery interesting" Obviously another ramper, 1mil buy is nothing for this share.

Katcenka - "ready for lift off" Another ramper, whats ready for lift off? Maybe your IQ!!

dont think we will see much up shoVe until we let the newyear in .then we could haVe a product update and steam start , looking at there past news releases Very few between now and end march.

Well according to a poster on another board who spoke to Jeremy Delmar-Morgan on the phone, "various RNS's will be released over the next few months".
Also, "JDM with Oilbarrel one day next week" (now this week).

Therefore I do think we will get some kind of interesting news this week, if they are going to do another Oilbarrel article - there must be something new they want to talk about?

Looks like the MM's are keeping the spread wide to keep it steady until news comes out?

CHEAP CHEAP CHEAP - No-brainer alert.

LOL, people are really missing out here - are there any other stocks which offer such a genuine and obvious bargain as SER at this price???

mj - I think the only people that are missing out are us share holders as this years performance has been crap!

Yeah, well, no offence, but nobody said you would get rich overnight in this stock. We all know that eventually, the overhang will run out, the selling will dry up and the stock will return to a more deserving valuation. We all know that this price is ridiculously cheap, and the Directors obviously agree. So why worry?

Just try and accumulate more shares while the price is still so cheap, and think about the rewards to come later.

moonshine1 - 21 Dec'05 - 12:18 - 3897 of 3919


I have this morning had a telephone conversation with Jeremy Delmar-Morgan:

Jim Ellerton's purchase was part of a much larger order (JDM didn't say how large) placed with his broker at .25p. The broker probably had a seller and was thus able to fulfill part of the order at 25p. JDM didn't know if the limit order was still in place and if it was, he did not think it would be filled at that price.

JDM & David Millham visited Oilbarrel last week to keep them up-to-date with progress at Sefton. As a result Oilbarrel may provide an update to Sefton's current articles.

We discussed the overhang again. He thought that it would take about 6 weeks to clear at the current volumes.

The person responsible for the website is Gary Dillabaugh, the company secretary. JDM has asked Gary to update the articles and keep the website as current as possible, and he will ask again.

Sefton are going to drill more wells at Tapia Canyon, don't know how many or over what time span, but they do believe the oil at tapia is more extensive. One of the wells at Tapia is apparently directly on the fault identified by geologists. As a result the oil was heated and flowed better than expected. Thermal stimulation will be beneficial, and that will be used at Tapia in the future. They are remapping Eureka.

JDM said that two research analysts were looking into Sefton at the moment; Ian McClelland(?) and a guy from Hardman's.

The company is now cash positive on a daily basis, and he is very positive about the future.

it must be the most boring share on the AIM except for DMR now that is shit

sounds interesting...