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

Cellby, could it not be possibly info. leak ahead of an imminent trading update due any time now!

jamee106 15% is not much in this type of co, if there was a leak it would be to someone with a few more shares than were traded today.the price went down early afternoon so any large delayed trades had time to show before close.

The spread has widened bid .25, offer .31, open .33... Seams the MMs want higher prices but buyers aren't prepared to pay for them. Last trade 500,000 at .27.
An RNS now would be well timed to set the sp free..

MM's want HIGHER prices?? It looks like the other way around to me, yesterday someone happily bought 3M+ at 0.36p and today they dash it down 17% on about 1M more sells than buys!!

Pure manipulation.

I think there is good news due, and the MM's know this. If so, they will want to get shares in as cheap as possible while they still can - they don't want to let it go up yet!

Regarding the overhang, the selling, what there is of it is now of a different nature, we are no longer seeing the 1M/500k chunks going through throughout the day in response to buys, but a few short-term punters selling out.
So don't know either way yet whether it's still with us.

The share seams to me to still be in a buyers market.... Easy enough to buy 1m shares but another story if your looking to sell... Hence the widening of the spread

Talk of oil price of $70 by end of the week. Sefton are RAKING IT IN.

its got to be as safe as oils can be ,not up the jungle with the gun toting bandets.back out the red not many of those today.

High expenditure and development costs are where the profits are going... Not very attractive for investors as no return. Maybe a small dividend would help!!

not many geting out of this today,looks like the oVer hang is cleared or the seller may be on his holidays.theres not much fat to trim off ser price unlike a lot of other stocks today and maybe a good few trading days yet. what a mess.

explosive, care to expand on your post 325 - what high expenditure and development costs - expenditure on what and development of what? Do you know something we don't?

Anyway, if you really believe that then I think you will have a pleasant suprise come the results in March/April.

MJR, the price has taken a real thumping over the last week, what makes you think the overhang is cleared

The overhang is not yet cleared another few weeks yet I think.

Pete, if that is true then the sp will be just as volatile for another fortnight or so,,, so perhaps its not a bad idea to jump on board again!

Are results due in MArch??? Any predictions

I didn't actually think it was cleared yet. For a while it seemed like it might have been but it does look like it'll be a bit longer yet.

Never mind, just think of it as more chances to top-up at dirt-cheap prices!

Its not the results of last year that matter, they will show a loss i would have thought. However, production now being at a regular 6000 barrels per month we should see a cash generative and profitable company going forward. Its the next 2/3 years that will be exciting for SER if they drill more wells etc.

When the price drops to .28 I buy if i can.

looking back at last 2 years finals were reported in early may, was hoping they could get them out sooner this year,as they haVe no fire or flood to contend with.we must be due some update on production or steam start, if not its going to be a bit boring.

ELP INFO::::::::::::::::::::
Translated excerpts from an article in the Norwegian financial paper Finansavisen 17 Janaury 2006:

.......DNO [www.dno.no] is busy preparing for the drilling the exciting Jaguar project. According to DNO the field could contain between 54 and 280 million barrels of oil with the most probable estimate at 138m barrels. This would mean 83m barrels for DNO, or a reserve increase of 80%.

- Jaguar is our next big project and it starts in the very near future, the CEO of DNO Mr. Helge Eide says to Finansavisen........


Now take a look at this:

If 83 million barrels is an 80% increase in DNO's reserves, their current reserves must be approximately 100m barrels. The market cap. of DNO is today 1billon, or 10 per barrel of oil reserves. However, as well as OWNING reserves DNO is also pumping and selling oil. Therefore lets allow for this and value their oil reserves in isolation to 7 per barrel.

DNO (and Rocksource ASA) own 60% og Jaguar and Eilixir owns 40%. If they find 138m barrels of oil Elixirs 40% will equate to 55m barrels of oil reserves. Multiplied by 7 per barrel this gives a total value of 385m to Elixir. Eilxirs market value today is 26m. Therefore if DNOs likely scenario (if they strike oil) happens Elixirs share can rise to 6.

Can anyone tell me how much cash Sefton have left? Do they need to raise any more funds.
I have been watching this since you first posted mjr1234 but i`m a bit weary of dipping my toes into this,it almost does look to good to be true.

the moment these go up, the company will issue more shares and this will get dilluted