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

Found the below and thought I'd post it as its what us long termers know and why we buy low and hold...

feelinlucky - Thu, 02 Feb 06 :
This is an article from oil barrel..a bit dated but extremly interesting.


12.09.2005
Revenues Start To Flow At Sefton Resources As Heavy Oil Wells Exceed Expectations
After something of a hiatus as heavy rain in California and title issues in Kansas delayed progress, Denver-based Sefton Resources is back on track. The resumption of normal sunny service in California means the company was able to catch up lost ground on its five-well drilling programme at its Tapia Canyon heavy oilfield, enabling the company to meet its year-end production target of 200 barrels per day four months early. Perhaps more importantly, those well results came in two-and-a-half times ahead of the engineers? report, pointing to a much larger field than expected.

This provides some welcome good news for a project that has had its fair share of bad. Tapia Canyon lies in the East Ventura Basin, about 40 miles north of Los Angeles. In 2002 the project was rocked by a devastating well blowout and then, in late 2003, work was hit by the bush fires that swept the state. The first months of 2005 were equally disruptive as drilling had to be suspended when torrential rains hit the region. The rainfall was quite exceptional for this part of the world with over 32 inches of rain falling during January and February 2005.

With production established, however, and oil prices soaring, Sefton hopes to put these trials and tribulations behind it. Jim Ellerton, chairman and chief executive, said the past six months saw the company take ?a major stride forward in putting Sefton on a more solid financial footing?. The company has just clocked monthly revenues of US$300,000.

Plans were in train to start a steam-assisted recovery programme on the field this autumn in order to boost production rates. That programme may now be shelved until the spring.

?At US$50 oil, wells that produce 40 barrels per day are very valuable and we don?t want to take a chance in messing around with them,? Ellerton told oilbarrel.com. ?Instead, we may get the revenues up so our finances are in good shape and then do the steam pilot in the spring.?

The company is also rethinking its steam recovery project, after mapping two subtle faults on the field. It had been planning to go for a steam-assisted gravity drainage project but may now opt for a less intrusive cyclic (or ?huff and puff?) type project, where the steam is periodically injected into the well and allowed to soak for a couple of weeks to improve the viscosity of the sticky oil, which is then produced.

?We will huff and puff the wells and see how they respond,? said Ellerton. ?If the faults don?t play a role then we will go for the steam-assisted gravity drainage.?

This particular technique, which involves a continuous injection of steam, has been known to boost heavy oil production rates by as much as 80 per cent. And the economics of a steam-assisted project have been greatly enhanced by the discovery last year of a gas pool at Tapia Canyon: the Snow-1 well in the west part of the field flowed 1.3 million cubic feet of gas per day (mcf/d) while the Yule-8 well, to the east, flowed 1.7 mcf/d.

Sefton has also bought coal bed methane assets in the Kansas Forest City Basin in East Kansas, adding to its existing leases in the state. ?We now have diversification in terms of geography and commodity,? said Ellerton.

The US$1.8 million deal, which has been 18 months in the making due to title issues, includes 20 miles of pipelines, a 25 mile gathering system and 65 wells, of which 42 are active. Due diligence has been completed and the closing date is penciled in for 21 September.

Looks like we are back to the MMs filling large buy orders again, this time at 0.42p. 2 weeks ago, they were filling them at 0.34-0.35p when the spread for us was 0.32/0.40.

I predict a rise tomorrow.

:-) now your talking

if they were to drill more wells on the fault lines, in spring we would get some warm easy flowing oil, without the need for steaming springs not far away now, april for me .might haVe a few dips in share price as last chance for top ups,there cash is growing eVery day,so they will be in a position to push on soon.

yer rise tomorrow, been waiting bleeding ages.. look at the spread, i get less spread on my toast

Strange, I can't see post 476.

Oh yes, it is by Katcenka aka Bluedolphine aka Luckypicker aka Potatohead, who is of course filtered/squelched.

What a peculiar chap.

Good post cellby. Things are definitely looking up for this company, and we'll find out for sure by next month when they get around to releasing a press release.

Or we might find out something more by early next week, when the Proactive Investor website is going live, complete with a "very long" brand new article about Sefton Resources..

so can i take it then that all the talk of news 'this month' is incorrect and it is now next month?

of course its incorrect, mrj keeps saying next week, maybe one year he might get it right

Hi Julian,

What I have heard from the management is that it was due to be released last week of Feb, but has now been delayed for around 2 weeks, which would make it early to mid March. Not long to wait.
I'd like to think the delay is to allow them more time to make the news release the longest most detailed and most positive one they've ever put out?

However, we definitely(fingers x'd) have the Proactive Investor report coming out early next week (Monday?). And the Hardman&Co shouldn't be much longer.

MJ

How ya doin'...

10/10 for keeping this thread active through the 'quiet times'...

Nothing has changed regards my/your explo/celby etc stance on this one...

Be fair, MJ and crew have put a lot of effort into keeping this one in peoples minds...
News will come sometime...
Bottom line is, a lot of people are now set to profit nicely as a result of their efforts...

Who cares exactly when... when it does, those of us in at the .28/.32 levels will clear out nicely...

666

No, most are in for longer than a few weeks, diablo. And a lot richer rewards than will be available in that short time.
You are welcome to take your small profit though, if you can find something more promising to put it in?

So what sort of price would you expect then MJ? 10p a share would a good start!

10p a share is cloud-cuckoo land unless you're talking very long term. That's a 3000% increase.

1.5p by the end of the summer is my target. 1p by results (April/May).

mjr1234: I think people will appreciate your restraint on this one - if they don't, they should!
In promising times it's easy to get too carried away and expect more than is reasonable. You keep the brakes on that by posts such as 486.
One thing I have in the back of my mind all the time these days is the fact that the markets are very high generally. And a substantial correction to that - which surely must be on the cards some day - will damage a few dreams around the place!
Not gloomy, I hope - realistic.

MJ - Can't see any announcments coming till the 2005 Annual report. Wouldn't surprise me if Sefton were currently under audit which is why no update at end of Feb... Personally I'm not bothered if the price does fall back to the .25's again as I would like to increase my holding further. Like you I'm in this for the long term and believe that the steam and gas reserves once tapped will along with the oil bolster revenues and the sp.

Hi explosive,

The management have told a few other shareholders directly that there WILL be an announcement early-mid March.

I also would love to be able to top-up again at 0.27-0.30 levels, but unfortunately those prices were the product of an artificial market caused by the overhang which it now seems apparent has lost it's effect. So I can't see those levels being available again now - that chance has passed. Below 0.40 is now the best we can hope for, and even that might change very soon. The MM's know that the support is so strong now, that if they were to narrow the spread by dropping the offer to just above the bid price, they would get their hand bitten off. It also wouldn't suprise me if they knew the rough timing of announcements etc, so in the meantime it suits them to keep the spread wide with the offer as high as possible, while hoping to shake out bored holders or T-traders, as they ARE short of stock.

Mjr1234,

The spread of 22% or so is ludicrous!

If they made it more reasonable, a few more people may buy in.