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

You're correct, although the operations report we have been looking at certainly implies the re-mapping was either underway or about to commence imminently.
But you're point about communication is very true.

I actually think that one reason for the decent rise since the last RNS in February was because the company had actually released a meaningful RNS to the market - it had been such a long time that the mere fact they had told us something sent the price up.

I think most people have no idea of the developments going on, unless they have scoured the website and spoken to the Director's personally. Much of the more upto-date information we have has come from conversations with Directors, so most of the market has no idea!

Some people think that the lack of communication has been because they were aware of the HB overhang which has now more or less fizzled out (touch wood), and didn't want announce positive news, just to see it have no effect. If this theory is true, then they should be announcing a very comprehensive and detailed RNS shortly.

Hopefully the Proactive Investor articles and the forthcoming (hopefully) Hardman&Co coverage is the beginning of SER Management "coming out of the closet" and starting to promote the company to the wider investment community.

This stock has been barely covered, if at all for the past 3 years either in magazines, newspapers, tip-sheets, broker reports, UK-Analyst, news summaries etc etc.

It's got such a low profile, most people are not even aware it exists.

Hopefully this is about to change over the coming months.

So far all the action has been in the California East Ventura Basin and oil plays. Lets not forget Forest City in Kansas, we've heard nothing in regard which makes me think either Sefton are still looking to aquire a small gas business to bring this into production or maybe sell it and concentrate on oil.

As coalbed methane accounts for around 8% of U.S. natural gas production and prices of natural gas are on the rise, currently high. If tapped and bought online this resource would be highly profitable for Sefton. Forest City already has a network of pipelines to transport gas and there are plenty of recognised zones for disposing of water.

Either way progress is slow on the oil front so maybe sefton either need to sell a site or deploy another team to deal with the natural gas whilst the current board concentrate on the oil.

explosive,

Two things - 1) Read the last RNS! 2) Look at the new page on the website! (about CBM)
Reading between the lines, CBM will be here a lot sooner than we think.

As for progress on the oil front - yes it seems slow because we haven't heard anything about it since last September. Hopefully very soon they will tell us what's been going on behind the scenes, and what they are going to do in the near future.

Come on Sefton, speak to us!

MJ - Glad you bought this up

Last RNS
"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 missing link and to me the sooner the better.

"Tim Carr, of the Kansas Geological Survey finds that Eastern Kansas is probably now the hottest play in the coal bed methane industry, which is surging because high prices in the natural gas market make new exploration profitable. Also, according to Carr, If you can get it to work, you can put in lots and lots of wells, and they go on forever. Some wells from the late 80s or early 90s are still making gas. Once solid flow is established in a CBM well, the production tends to last. However, the full extent of the potential of the Forest City Basin areas production will largely be determined the old fashioned way - at the drill bit"

Sorry MJ, have now understood information I read but didn't quite grasp!!! (On holiday now and will be in Tennerife next week so even happier now.)

One question though something which I wondered, the below article regarding Eureka

"The field has been producing since its discovery. California DOG records (from 1917) show the field produced 764,000 barrels of oil to 7-1-93. It has been estimated the field produced about 320,000 barrels of oil from 1893 to 1917, with an estimated cumulative oil production of approximately 1,084,000 barrels of oil to July 1993. The field produced 41,647 bbl from July 93 to March 31, 2002. Cumulative production to 3-31-02 is estimated to be 1,125,000 bbl. 53,000 mcf of gas is reported to have been produced in the past from the producing intervals. This gas was vented or flared. Average oil gravity is approximately 26 API."

53,000 mcf of gas seams quite substantial so rather than vent or flare it could it be used as a power resource or for steam?

so are we expecting news in the morning?

ALMOST ALL BUYS THIS AM. The mm's must be making a fortune controlling the sp the way they are.
A positive RNS is whats required and soon to push the sp up whilst the interest (by small investors) is still high.
all IMHO . Still happy to hold with all digits crossed.

tweenie,

The MM's will know that an RNS is going to be released probably this week (they do read these discussion boards). They will know that this is likely to create a much increased demand for stock. Now since they are still short from the last rise, they will be controlling the price in the current range to put off buyers and get sellers at an acceptable price to them in order to try and balance their books before news comes out. All IMO.

4.6M buys v 1.8M sells.

The buy order is in.

hello mjr1234 and others
I have been reading some of your posts a couple of questions who are the HOODS and what do you mean The buy order is in. I came onboard yesterday with this share. Hope it does well
thanks keith

kkeith,

HOODS are a market-maker in this stock. A buy order is an order to buy at a certain price, which I put in earlier at 0.52p.

Where are you posting from by the way?

hello mjr1234
Am at home is that where you mean. Thanks for the reply
keith

No, I meant which country?

am from England South Yorkshire

Ok. Cheers.

Yes, very strange going's on. 8 million shares bought, 3 million shares sold on the day - and yet the price still went down!

Someone bought 2 million shares at a minute to close today at 53

Should be interesting in the morning...

hello Harry
Yesterday was about the same maybe m/ms are collecting . Whats interesting is the spread 13%. News maybe on the way and m/ms can be a little nervous

Kkeith - it is odd, yes. But to look at it in a different way - 2 million shares comes to a relatively modest 10 thousand quid, and the 5 million difference in today's trading, 25 thousand. Not a lot really in overall market terms, I would have thought.

Just got an email from Gary D - news soon, keep the faith :)

I am being succinct. We will be making a number of announcements shortly regarding your queries as well as other developments. The mapping will take some time but the software has been purchased and the project has been given high priority. The rest will be addressed along with the audited financials and the updated engineering in due course.