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

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

Well since they have been cash positive for over a year, they raised $1.8M for an acquisition which they decided not to acquire, and since last August have been bringing in over $300k revenues per month...

I would guess they have plenty of cash!

katcenka,

Are you the same retarded idiot as Bangkokbang and Bluedolphine on advfn by the way?

If so, how come they haven't locked you up yet?

Back on filter you go.

With people like katcenka on this thread it is bound to set off alarm bells with people .

Good comments though mjr1234

Jameel - Don't mean to be rude but why don't you start your own DNO thread. I would be more likely to comment on a new thread DNO than here which is for SEO... Go for it, I know your new but a far better way to consolidate info researched by yourself and others..

MM's playing games with the spread, but want your shares before the production update.

I think that's basically it, TheMaster.

We all know this will probably be much higher in the coming months.

SER needs to start holding onto some cash, it'd be nice to see them either break even or make a small profit. Profits being spent in drilling and workover programes are very well looking at the long picture but its higher risk, as seen before when bush fires destroyed production. I would like SER to become more rounded with funds ready to spend to disaster strike again.

Bush fires didn't destroy production, they just delayed it for a short while. The blow out 4 years ago did the most damage for the company.

But there is a balance between saving money for a rainy day and investing it on increasing production and expansion, and adding shareholder value.

And another way of looking at it is that drilling more wells and working over old wells which increases the number of operating wells throughout the field actually REDUCES risk, as if a disaster strikes one well, then it is not such a catastophe if they have many other wells to continue running as normal?