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

Interesting "risk graph" explosive - not seen one of those before. Any idea what it is measuring to calculate the "risk"?

Hi MJ - RiskGrades are calculated by RiskMetrics based on asset-specific information (variation in assets price) and general market conditions (volatility of a basket of global equities). 0 is the perfect riskgrade as would be fully liquid like cash, 1000 would represent say a decline in demand or over supply in a volitile market on a good with high depreciation a good example would be say tomatoes in the middle of summer when price and shelf is lowest... Anyway I'm sure you dont want me ratteling on so have a look at http://www.riskgrades.com. The grading is consistant accross the markets and I refer to them mostly when considering a increase in my holding... Hope this helps..

Thanks explosive. Another tool to add to the research armoury.

I've got a feeling next week may be quite interesting for SER holders.

A lot is scheduled to be happening with this share in February, which of course starts on Wednesday..

mjr1234 i hope so all the other oils are leaVeing us behind ,i think we need more cash to get things moVeing.the money we are geting from 200bopd is not enough to get gas production started or drill more oil wells , this is where we could be traped until we build a cash pile .

I think they should have enough for quite a bit of drilling from the 200bpd, especially if it includes bringing old existing wells (pre-sefton) back into production. Out of the $300k/month revenue they should have at least $150k/month after costs, probably a lot more. So that's maybe $1M from the last 6 months of full production, although they said they were cashflow positive at the beginning of last year, so could be much more from this.

In addition they have some/all of the ~$1.6M that was going to be used for the acquisition of Monument Resources but that never happened. This money may be used to develop the gas infrastructure.

Looking good so far.

Luckypicker - now there's one chump who I hope doesn't buy into this stock.

lockin coming... it dont look good

LOL, don't tell me you are one of HB's muppet clients who sold out at .23 last week?

So who's the looney on here then? LOL

up 30% on the day thats a bit less boring,good Volume people will take there profit tomorrow but we will hold these low 30,s soon and moVe on up.

I too expect a small retrace tomorrow unless news or something else is out. But since most sells today were at a price of 0.30-0.34, then I can't see the offer going below 0.34 or therearbouts unless there is a lot of selling.

With news round the corner can't imagine there will be much selling, any reason for the 47% rise today???? Looks like the share might have been tipped on volumes, anyone any idea? Riskgrade 508 so nothing there...

Someone on the advfn bb said he rang Jeremy Delmar-Morgan (ex-CEO of Tether & Greenwood), and apparently he had mentioned/tipped this stock to some private clients/contacts? This might be a/the reason for the rise today.

MJ thanks for post 367, definatly a good possibility, the MM's would have increased the sp on news of this.... Anyway in my mind nothings changed and I'm still holding...

a good rise like today is nice way to get us noticed, bring in more buyers to clear oVerhang .we had pump up like this few weeks back and it droped to .26,if it repeats im grabing a few more this co has 100% in it short term ,get me out of some dogs i haVe lost interest with.

This one seemed a lot more solid, with the MM's taking countless sells at 0.31-0.33 and barely flinching. I think the end of the overhang is very close, if not already here.

But I guess we'll have a better idea tomorrow?

not a big rush for the door yet mm trying a mark down to get in some stock.

News will arrive soon, and the price will rocket again