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

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.

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?