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

MJ - For a rip off company Hoodless Brennan sure have some respectible awards under their belt.

Best Online Broker for Cost 2005 - Investors Chronicle
Runner Up Best Small Cap Stockbroker 2005 - Digital Look
First Runner-Up Best Stockbroker 2005 - What Investment
Best Runner-Up Online Sharedealing Site 2003 - Personal Finance

Also Hoodless Brennan offer share advice to their customers, it's their right to advise (not execution only) however they feel approriate. If this really concerns you then report if to the FSA with any evidence you may have.

Personally I couldn't care less if HOODS advice to their clients is "sell". The same as I couldn't care less if RHPS decided to buy. Either way the sp is holding up and I'm holding my shares long term. I'm sure we'll see many more Hoodless Brennans before getting out of SER.

Finally haven't you noticed that SER @ a risk grade of 650 or below the sp on average climbs.

explosive,

You appear to have a bit of a soft spot for Hoodless Brennan. Are you a client by any chance?

By the way, I really don't think the "risk grade" affects the price of Sefton Resources!
News, sentiment, fundamentals, prospects, buyers, sellers, trend, resistance, support, market makers actions, tips, and coverage affect the price, but not the "risk grade" graph.

Now here's an interesting fact:

Since SER's announcement after close last Tuesday about selling TEG Canada to raise cash to develop their CBM assets, investors have put over 500,000 into this stock in just 8 trading days!

Just a coincidence? I don't think so.

MJ - I'm no client of Hoodless Brennan, I was actully pleased to see that the FSA fined them in 2003 for misleading information if I remember correctly and the subsequent cover up. Scarecrazy.com are there appointed reps are my bet is they are to do with the misconduct you described above.

Riskgrade doesn't directly affect the sp no your right however for me anyway a falling riskgrade does help with confidence along with the other factors above you described. Its clear were not going to agree on this point so lets just move on. We agree SER is a good investment for the long term and currently seam to have the same strategy.

Alright explosive, lets agree to disagree on the riskgrade!

What do you think of the fact that over half a million pounds has been invested into SER in the last 8 trading days since the RNS?

MJ - The investment represents 10% of SERs Market Cap, obviously shows confidence in SER and news to come. I'd prefer to comment after results/trading statement is released to ensure market expectation is of equal consensus to the RNS.

To be honest I haven't even checked that half a mil has been traded, daily volumes are of no relavance to me at the moment as I favour SERs strategic and opperational goals against the boards ability to meet them.

As your aware SER volumes over past months have been very high in both buys and sells with little difference to any strategic position of late.

Sefton Resources: EPIC : SER Market cap: 8.4M

Based in the USA - very low risk.

Has reserves in California (Oil/Gas) Kansas (Coal-bed Methane/Oil/Gas) and Alberta, Canada (Oil).

Is currently producing 6000bpm (100% attributable) from it's Tapia and Eureka canyon oil fields in California, and has plans to expand production rapidly in 2006 by workovers, drilling and steam stimulation techniques. The oil is medium-heavy API so receives a price around $10 less than crude. Transport and lifting costs are very low so the discount to crude is virtually balanced out when comparing to companies operating in remote jungle or icey wilderness locations in far off countries - this companies oil fields are 25 miles from Los Angeles!

The company also discovered 3mcf of gas flowing at it's Tapia field, which so far has not been tapped or accurately measured. The extent of the oil at Tapia which was previously 5mbs proven resources is also undergoing a rerating. The second field at Eureka canyon is currently only producing 30bpd but is also planned to remap and expand production on this field.

Sefton recently announced (2 weeks ago) that it is selling off it's Canadian assets to raise cash to develop it's CBM assets in Forest City Basin, Kansas. CBM is going to undergo huge growth in America in the coming months and years and the economics are excellent. Sefton are in the right place at the right time with their accelerated CBM plans.

All this for under 10M market cap - scandalously cheap especially when compared to the many oil companies rated at many multiples of this that haven't even produced 1 barrel of oil!

These two excellent articles recently written about SER are essential reading for further research:
http://www.proactiveinvestors.com/registered/articles/article.asp?SER
http://www.proactiveinvestors.com/registered/articles/article.asp?SER2

Their website http://www.seftonresources.com also contains a lot of information and is well worth a read.

good Volume building today,we had a push on .64 keeping some suport aboVe .5,lot more interest in ser now that got to be good. feels like there presure under the share price again,thought we would hang around .5 longer,nice to be wrong here.

Cant wait to see what 2005 ROCE will be, I'm thinking around the 30% mark. Anyone any ideas?

on a rising trend with a large volume

Slow stochastic on the rising again

I'd say 22-27% ROCE although that is just a guess and they are the first numbers that came into head. It's looking very good though. Slight dip today but it'll pick up again soon.

A few more HOODS sheep herded out today? Good riddance I say.

Still a +50% rise in the month, those selling obviously don't know the facts

Tapia Oil Field
Hartje #12 ~ Workover
Hartje #13 ~ Current production 46 BOPD (2005)
Hartje #14 ~ Current production 46 BOPD (2005)
Hartje #15 ~ Current production 46 BOPD (2005)
Yule #7 ~ Current production 40 BOPD (2005)
Yule #8 ~ Planned to provide pilot steam gas
Yule #10 ~ Current production 40 BOPD (2005)

Settle out rate for the above 180~200 BOPD (2005). With the Hartje #12 workover and steam testing we could see an additional 80% production added to the wells above. Bringing settle out rates to 324~360 BOPD just on the above wells.

Looks good information, explosive - where did you get it if you don't mind me asking?

Well another fun day of MM manipulation and HOODS calling the shots.

They know as well as we do that news is highly likely to be released tomorrow, Friday or next week. They will probably mark it up 20% on open that day, having filled up with panic-sellers they've manipulated out.

MJ - The info comes from Seftons website within 2005 operations report, link posted below. 2006 operations should show progress to this report and further direction of spending...

http://www.seftonresources.com/news/OperationsReport2005.pdf

From the operations report:

"The 2006 Drilling program will be outlined, once the field has been re-mapped for the Yule oil zone, the Shallow Gas Zone and other possible producing horizons."

This is what I'm looking forward to in the forthcoming expected RNS.

MJ - Don't forget about Eureka, this has long taken the back seat to Tapia. Eureka also has zones which are potential drill sites. Also there is some 1000 acres unexplored which could well hold additional reserves in either oil or gas.
I am expecting to hear news of further mapping and test holes and workovers in the 2006 report. I think its too early for any major drill, having said that I'm not exactly sure where in the game Sefton is with mapping anyway but if a find was discovered I'd have thought we'd have seen an RNS....

In theory, although they can always argue they are waiting for all results to come back before releasing an RNS. That could explain why initially it was going to be February but now it's early-mid March?

MJ - If that was really the case then we'd have seen an RNS stating that mapping was either underway or completed and results of bore holes would follow. As neither has been anounced then I presume Sefton is still at workover stage... It doesn't matter how you interperit this Sefton continuiosly fail to communicate with their shareholders which is a factor for there sp volitality in investor guesswork.