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

Hi tizzamark,

The market closes at 4:30pm.
Therefore the spread is the same tonight as it was today.

I'm going to stick my neck out here.

I think this will be around double the current price in a month's time.

oh another prediction that wont come to fruitition eh Mrj, thought you said there was news today...

so where is it

I bet you 20,000 that this will be around double the current price in a month's time. Up for it?

mrj, i hope you are right, but the current sp is down slightly today so is that double the current sp or double the opening sp? obviously the former will be easier to get to.[said in jest i dont have 20k to play with!! i am only a tiddler learning to play with the sharks]

I reckon it will be between 0.65p and 0.8p

Here is some news:

http://moneyam.uk-wire.com/cgi-bin/articles/200602211630287358Y.html

QUOTE:

Sefton has agreed the terms of an offer to acquire all of the shares in TEG Oil
& Gas Canada, Inc. ('TEG Canada') which are not currently owned by the Company.
With the Company's focus increasingly on its California oil fields and Eastern
Kansas Coal Bed Methane fields, the Board believes that TEG Canada is no longer
strategically important to the Group but that better value can be generated by
making TEG Canada a wholly owned subsidiary in the short term before seeking to
dispose of it in due course and using the cash generated from any disposal to
expand the Company's Eastern Kansas assets.

RNS

Director/PDMR Shareholding

RNS Number:7358Y
Sefton Resources Inc
21 February 2006


Sefton Resources, Inc. (the "Company" or "Sefton")

Directors' Shareholdings and acquisition of remaining shares of subsidiary

Sefton has agreed the terms of an offer to acquire all of the shares in TEG Oil
& Gas Canada, Inc. ("TEG Canada") which are not currently owned by the Company.
With the Company's focus increasingly on its California oil fields and Eastern
Kansas Coal Bed Methane fields, the Board believes that TEG Canada is no longer
strategically important to the Group but that better value can be generated by
making TEG Canada a wholly owned subsidiary in the short term before seeking to
dispose of it in due course and using the cash generated from any disposal to
expand the Company's Eastern Kansas assets.

The Directors have approved the terms of the offer which is to be by way of a
share exchange on the following basis:

* in the case of TEG Canada shareholders who are not directors or officers of
the Company (and/or one of its subsidiaries), 417 Sefton shares for every
10 TEG Canada shares held; and

* in the case of TEG Canada shareholders who are directors or officers of the
Company (and/or one of its subsidiaries), 379 Sefton shares for every 10 TEG
Canada shares held.

There will also be a cash alternative offered of $0.25 CDN per TEG Canada share
(which was the recent placing price for TEG Canada shares). Full acceptance of
the share exchange offer would result in the allotment and issue of 135,789,202
new shares in Sefton.

All directors and officers of Sefton and its subsidiaries have agreed to accept
the share exchange offer of 379 Sefton shares for every 10 TEG Canada shares
held and as such the shareholdings of directors of Sefton shall change as
follows:

* J. Ellerton is to receive 9,600,828 shares and following completion of the
offer will hold 67,953,728 (4.2%);
* J. Delmar-Morgan is to receive 15,229,660 shares and following completion of
the offer will hold 33,515,374 (2.1%);
* A. Ashton is to receive 6,064,000 shares and following completion of the
offer will hold 9,264,000 (0.6 %);
* N. Thachuk is to receive 3,790,000 and following completion of the offer
will hold 9,190,000 (0.6%).

The above percentages are based upon all shareholders accepting the share
exchange offer rather than taking the cash alternative.

Enquiries

I am guessing that they already have some interested parties, otherwise seems a strange thing to do at this juncture. And they do use the words "short-term" in the RNS.

Someone has just pointed out to me that TEG Canada was the vehicle through which the $1.8M was raised for the aborted Monument deal, so that by acquiring the full holding, SER get their hands on the whole of the cash.
Maybe not so strange after all?

mjr, how do i get a copy of the RNS? or is it an inhouse publication for stockbrokers and not amateurs[ i am still learning my way around]

Hi Robert,

RNS's are paid-for news releases that must be purchased from the LSE. I paid 50 for the one just out, but I will email a copy to you for 25 if you like?

so rns = recent news statement [or something similar] i check out the N button when it appears

RNS stands for Regulatory Newt Service

I cant believe your trying to ramp very bad news as good news I can certainly now say "I've seen it all now", unbelievable, he cant even admit when he is wrong even when its staring him in the face

mjr, thats too rich for my blood i will just sit and wait. like i said i am an amateur and small bit player. thanks for the offer though

the morning should dictate how this shares going to pan out. I think theres method in the purchase, as long as a disposal is on the horizon.
Potatohead.... care to spell out why its bad news?
personally I see no NET loss.

robertalexander,

I was just taking the michael. RNS's are of course free to read - just click on the link on the Quote page or on the 'N' next to the price.

tweenie,

Potatohead is the same poster as Luckypicker on advfn. A known dickhead and wind-up merchant and should therefore be treated as such (filtered/squelched).

At first glance, the extra shares generated by this deal could be seen as a negative, but then you realise that what we are getting for those shares is extra value which almost definitely exceeds the value of those shares, thus there is not actual dilution, and rather the opposite (condensation?) instead.

For the issue of shares (assuming all TEG Canada holders decide to take them up - anybody wanting out can take the quick and easy cash option instead), SER is of course getting it's hands on the entire cash raised for the Monument deal, as well as the assets of TEG Canada, which has a small oil production in its own right.

I also don't believe they would have done this deal without already having one or more interested parties lined up to buy TEG Canada off them. After all the stated purpose of this acquisition is to generate cash (and plenty of it as they are talking about using it to develop CBM assets!) in the short-term.

This could actually be a very shrewd move.

The overall implication of this announcement is that they are intending to
DEVELOP THEIR CBM ASSETS IN THE SHORT-TERM

Which is very good news.