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

I'm in, 150,000. And I wish I had all the time back I've spent reading about this bloody stock, and watching the share price do..........absolutely nothing.

There's not even a decent row on this thread, something to break the monotony.

im still in waiting to see what there plans are to get things moVing,eg. steaming,coal bed gas,new drilling.results should be out early june,then we should haVe an clue if they are peeing it all up the wall, or going to get on with some work. bad news about production droping,but 100% up on last year and oil price must be 50% up on 04,s results.oils are all on the slide so we are in good company.

I want to buy this share but the overhang worries me, is there a way to calculate how long the overhang might keep this stock down?

Over the long term this stock is a gem, i have no doubt it will be a ten bagger if
it is valued on a P/E of other oil producing companies, if it doesnt we will be looking
at a 100% dividend which i cant see happening, the arbitragers will make sure of that, which justifys my medium term ten bagger theory.

My only concern is dollar depreciation as this is a US stock with dollar earnings, and the dollar has had it's day. Will this impact on the SP in the future?

Barclay - wouldn't worry about the USD in relation to Seftons SP.... Fingers crossed for your brave 10 bagger theory!!

Is oil in genreal on the slide at the minute or something? I also hold shares in Hydrodec and they were looking pretty good too until a few days ago.

I get the feeling Sefton may have bounced now mind. Should see a bit of a recovery in the next few weeks. Just in time for the results coming out!?! Hmmmmm? I wonder?

Price now more realistic to buy in at and with results coming up worth a few quid. Nice late reported trade on Friday could set things up for a quick rise tomorrow.

Amities . Yes Barclay . Big institions and hedge fund managers are shorting oil; and have been for over a month . Pri*k s . Only impacting on individual companies now. But oil is my game & believe me the actual price of 1 bbl of oil will only EVER increase.lt may wildly fluctuate but it will NEVER, and i mean NEVER deviate far below $70/75 for sustained periods . {With there being over 30 grades of oil l am taking WTI as a mean average .So one half decent strike and you have a company maker on your hands . ....Also B. if my memory serves me right i think the overhang was in the 750 million shares region .......... Also the day the dollar hits the deck is the day lran and ultimately the rest of us will feel it .......... S/P is like watching paint dry; yet mms mark the "offer" right up in out of hours trading .Some-one is obviously keen . All you can do with this one is wait until annuals and info ( lol ) @+ J

Bonjour! French Connection. Can you explain to me how these shorts have an impact on our shares, briefly... sil vous plais.

The share price goes down, LOL

Hello peeps. What production figures are we realistically expecting these guys to come out with when the results are announced?

You can have a look at the production charts up to March 2006 on sefton's website, http://www.seftonresources.com. Look under news/currentactivities, I think. They are going to be updating the charts on a quarterly basis, so in June we should get the figures until end of May 2006, I believe.

I understand that since December 2006 production has declined because they are having a problem with the gravel-packing in one well. It has become blocked and they are trying to source a rework rig. From memory production in March 2006 was in the region of 160 bopd.

I believe that the results will be out next week, and judging from the expenditure in the first 6 months of the year, and the production levels in the second half of the year, we could be looking at a half-year profit of $0.5M, which would give a full year loss of $0.5M.

HTH. All IMHO, DYOR etc.

Final Results

RNS Number:5464E
Sefton Resources Inc
14 June 2006


SEFTON RESOURCES, INC.
("SEFTON" OR "THE COMPANY")

Final Results for the year ended 31 December 2005

CHAIRMAN'S STATEMENT:

This year we have made a good deal of progress, despite a disappointing start in
January and February when our drilling programme was delayed because of
exceptional rainfall in California. We have firmed up our asset base and are
confident that this should improve cash flow in due course.

Highlights include:

*Five new wells at Tapia Canyon Oil Field, California

*the acquisition of over 20,000 mineral acres in the Coal Bed Methane Gas
producing area of Eastern Kansas

*An increase in Oil and Gas sales by 284% to US$2,165,410 (2004:
US$563,231) as a result of production from new wells and the increased price
of oil.

*A reduction in losses of 36% to US$694,464 (2004: US$1,088,986) resulting
from an overall improvement and a profit for the second half of 2005.

*An increase in the group's Proven Reserves by 60% to 7,588,203 BBLS
(2004: 4,743,088) which at the year end have a before tax present value of
US$74,206,862 (2004: US$38,388,570) up 94% based on constant costs and the
price at 31 December 2005 with a 10% discount factor.

Elsewhere, Oil and gas production costs increased 17% to US$469,196
(US$402,425), general and administrative costs increased 74% to US$1,885,406
(US$1,085,407) as a result of a non recurring write-off of US$300,000 from an
investment that was not closed and increased staff, offices and associated costs
to handle larger operations in California and new operations in Kansas.

The wrongful death lawsuit relating to a blowout when drilling a well in the
Tapia Oil field in 2002 was recently settled with no liability or costs to
Sefton Resources, Inc. or its subsidiaries and the litigation with the drilling
company relating to the drilling costs and possible damages is still in process.

Currently, we are upgrading surface facilities at our California operations, in
order to handle future production increases and are in discussions to sell TEG
Oil & Gas Canada, Inc., with the proceeds planned for further development of our
Eastern Kansas assets.

The company welcomes Harry Barnum to its Board of Directors who replaced Karl
Arleth to whom we would like to express our appreciation for past services.
We appreciate the loyalty our shareholders have shown over the past couple of
years and it is our belief this loyalty will be rewarded in the coming years,
and we look forward to discussing such at the Annual General Meeting on July 10,
2006 in London.

Jim Ellerton
Chairman and Chief Executive Officer
14 June 2006


SEFTON RESOURCES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AS OF DECEMBER 31, 2005 AND 2004
December 31,
2005 2004
--------- ---------
ASSETS
Current Assets:
Cash and cash equivalents $ 126,109 $ 2,485,513
Accounts receivable 347,710 59,200
Other receivables - related party 22,517 157,973
Prepaid expenses and other assets 47,287 41,914
Total current assets 543,623 2,744,600

Oil and Gas Properties, Full Cost Method,
net 7,524,772 4,325,195

Equipment and Vehicles, net 50,126 44,756

Total Assets $ 8,118,521 $ 7,114,551
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 774,276 $ 438,382
Accrued expenses 23,685 2,697
Accrued expenses - related parties 79,058 46,871
Note payable, current portion 70,191 -
Total current liabilities 947,210 487,950

Asset Retirement Obligation 163,111 75,340

Note Payable 601,036 -

Note Payable - Related Party 270,160 348,554
Total liabilities 1,981,517 911,844

Minority Interest 722,072 -

Stockholders' Equity (Notes 1 and 7):
Common stock, no par value, 3,000,000,000
shares authorized, 1,493,369,500 shares
issued and outstanding 10,922,853 10,922,853
Stock subscription receivable (30,047) (30,047)
Treasury stock (58,602) -
Accumulated deficit (5,483,799) (4,789,335)
Accumulated other comprehensive loss 64,527 99,236
Total stockholders' equity 5,414,932 6,202,707

Total Liabilities and Stockholders' Equity $ 8,118,521 $ 7,114,551


SEFTON RESOURCES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
For the Years Ended
December 31,
2005 2004
---------- ----------
Revenue:
Oil and gas sales $ 2,165,410 $ 563,231

Costs and Expenses:
Oil and gas production 469,196 402,425
Depletion and depreciation 199,714 166,662
General and administrative 1,885,406 1,085,407
Loss on fair value of derivative 266,735 -
Total costs and expenses 2,821,051 1,654,494

Loss from Operations (655,641) (1,091,263)

Other Income (Expense):
Interest income 15,421 10,464
Interest expense (46,193) (11,203)
Foreign currency transaction losses (8,051) 3,016
Total other income (expense) (38,823) 2,277

Net Loss $ (694,464) $ (1,088,986)

Basic and Diluted Loss per Common Share:
Loss per share $ (0.000) $ (0.001)

Basic and Diluted Weighted Average Shares
Outstanding 1,493,369,500 1,133,348,189


SEFTON RESOURCES, INC. AND SUBSIDIARIES
STATEMENT OF CASH FLOWS
For the Years Ended
December 31,
2005 2004
--------- ---------
Cash Flows From Operating Activities:
Net loss $ (694,464) $
(1,088,986)

Adjustments to reconcile net loss to net cash used
in operating activities:
Depletion and depreciation 199,713 166,662
Stock issued for services - 19,349
Stock options issued for services - 49,000
Forgiveness of accounts receivable to related
parties 148,000 -
Changes in operating assets and liabilities:
Accounts receivable (288,510) 40,202
Prepaid expenses (5,373) (13,008)
Other assets - related party (12,544) (119,447)
Accounts payable 335,894 (214,394)
Accrued expenses - related party 32,187 25,031
Accrued expenses 20,988 (2,381)
Net cash used in operating activities (264,109) (1,137,972)

Cash Flows From Investing Activities:
Purchase of oil and gas properties (3,314,760) (1,274,028)
Purchase of property and equipment (25,951) (25,356)
Proceeds from sale of oil and gas properties - 23,824
Net cash used in investing activities (3,340,711) (1,275,560)

Cash Flows from Financing Activities:
Proceeds from sale of minority interest in
subsidiary 722,071 -
Proceeds from notes payable - related party 270,160 -
Payments on notes payable - related party (58,602) (22,006)
Proceeds from notes payable 416,157 370,000
Payments on notes payable (93,484) (48,946)
Proceeds from sale of common stock - 4,158,109
Collection of stock subscription receivable - 11,432
Net cash provided by financing activities 1,256,302 4,468,589

Effect of Exchange Rate Changes on Cash (10,866) 67,768

Net Increase (Decrease) in Cash and Cash
Equivalents (2,359,404) 2,122,825

Cash and Cash Equivalents, beginning of year 2,485,513 362,688

Cash and Cash Equivalents, end of year $ 126,109 $ 2,485,513


NOTES

1. Financial Statements
The summary financial statements set out above have been extracted from the
Company's audited financial statements for the year ended 31 December 2005, (not
presented herein). Those financial statements were prepared in accordance with
United States Generally Accepted Accounting Principles. These summary financial
statements do not constitute financial statements in accordance with United
States Generally Accepted Accounting Principles as they omit substantially all
the disclosures required by United States Generally Accepted Accounting
Principles. A full set of accounts can be viewed at www.seftonresources.com.

The annual report of accounts will be posted to shareholders by 17 June 2006,
copies of which will be available from the Company Secretary, Pinsent Masons
Secretarial Services Limited, Dashwood House, 69 Old Broad Street, London EC2M
1NR or at www.seftonresoures.com. The annual General Meeting of the Company will
be held 10 July 2006 at Nominated Advisors (NOMAD) London Offices; Seymour
Pierce, Bucklersbury House, 3 Queen Victoria Street, London EC4N 8EL.

2. Net Loss Per Share
The Company applies the provisions of Statement of Financials Accounting
Standard No. 128, "Earnings per Share" (FAS 128). All dilutive potential common
shares have an antidilutive effect on diluted per share amounts and therefore
have been excluded in determining net loss per share. The Company's basic and
diluted loss per share are equivalent and accordingly only basic loss per share
has been presented.

3. Dividends
The Directors are not recommending the payment of a dividend.


For further information, contact:

John James (Jim) Ellerton, Chairman & CEO Tel: 01 303 759 2700
Jeremy Delmar-Morgan, Director Tel: 020 874 84066
David Millham, Investor Relations Tel: 020 779 69999




This information is provided by RNS
The company news service from the London Stock Exchange

END
FR EANKLFENKEEE

Looks like this is going to be a big one.

Very good results, IMHO. Huge 94% increase in reserves, profit in H2 2005. Looks very promising.

Yep MMs trying all they can to get stock now.

Well they ain't getting mine. With the problems in the market, this is a long term hold, and top-up as and when I can afford it.

Some good press coverage:

From UK Analyst: "Sefton Resources cut its full-year losses and actually moved into profit in the second half of the year and the shares jumped 0.09p to 0.425p. In the 12-month period to December 31st, the US-focused group said that an increase in oil and gas sales by 284% to more than 2.15 million dollars has resulted in the group cutting its pre-tax losses to 694,464 dollars from 1,088,986 dollars. The group also said that it was currently upgrading its surface facilities at its California operations in order to handle future production increases and that it was are in discussions to sell TEG Oil & Gas Canada, with the proceeds planned for further development of its Eastern Kansas assets."

More Press: (same article as This is Money - http://tinyurl.co.uk/i18y)

Life Style Extra
Finance News
Latest UK-related finance news headlines

... Elsewhere, Sefton Resources was up 0.08 at 0.42 after cutting its net loss in the year to Dec 31 2005 to 694,464 usd from a loss of 1.1 mln usd a year earlier ...

http://tinyurl.co.uk/qf82

Should be good for a rise tomorrow.

we got there in the end been in profit from some where 2h 05,so that is already 6 month of 06 at profit,how time flies,now we need to push on to next stage of increased production. which i hope ser can do more than hint at around agm and giVe out some concrete plans for uping bopd. steam assist could giVe 300% improVment to bopd.that would put us in the real money.

16.06.2006
Sefton Resources Reduces Its Losses As It Benefits From Sustained Production And High Oil Prices
With its cash flows stabilized and a long running lawsuit resolved, Sefton Resources is already looking ahead to 2007, when it plans a major ramp up in activity. This year, it seems, will be a year of consolidation to lay the groundwork for next years activity build-up.

The AIM-quoted company is currently pumping about 150 barrels per day from four wells on the Tapia Canyon heavy oilfield in the East Ventura Basin, about 40 miles north of Los Angeles in California. A fifth well is down due to problems with the gravel-packing. A rig is now on site to resolve the problem and it will resume production of around 30 bpd shortly.

Sefton drilled the five Tapia Canyon wells last year and they have already paid back their investment. They are currently generating revenues of around US$250,000 and US$300,000 a month. This has seen the company cut its losses by 36 per cent to US$694,464 for the full year 2005 and move into profit in the second half of the year.

The company is currently upgrading the surface facilities at Tapia Canyon to ensure it has the capacity to handle future production increases: these will come through new drilling and the deployment of steam-assisted recovery technology. The latter has been delayed - investors had expected to see it in action last year - because the company is reluctant to mess around with wells that are proving so successful at restoring its financial equilibrium.

This is a project, after all, that in 2002 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. Those problems are now behind Sefton - and the wrongful death lawsuit resulting from the 2002 blowout has been resolved with no cost or liability for the firm - and with production established it is now on a firmer financial footing.

It is reluctant to disrupt this production stream. While steam assisted recovery would boost output, it would also require the wells to be temporarily shut in while the steam soaked into the sticky oil to improve its viscosity.

We still plan to do steam-assist this year but may wait until we have got a couple more wells down so we will not miss the production, chairman and chief executive Jim Ellerton told oilbarrel.com. We have been so successful with these wells that we do not want to mess with good cash flows until we have had a bit more of them.

Depending on financing, Ellerton hopes to sink at least a couple of wells this year with more to follow in 2007. The company is piggy-backing on the drilling programmes of other operators: by collaborating, the operators have put together a 30-well-programme that is of sufficient size to tempt a drilling contractor and Ellerton hopes to get his share of the rig time this autumn.

Sefton also produces around 30 bpd from very old wells on about 40 acres of its 1,500 acre Eureka Canyon site. These wells are prone to sanding and, drawing on lessons learned from the gravel pack techniques used successfully at Tapia Canyon, Sefton believes the best plan of action here will be to drill new wells rather than rework the old wells.

We plan to do a geochemical, geophysical survey at Eureka Canyon this year and next year we will initiate additional work there, said Ellerton.

Sefton has taken steps to diversify its asset base. An earlier attempt to buy coal bed methane (CBM) assets in Kansas has been aborted due to title issues so the company has instead acquired over 20,000 acres in CBM-rich Eastern Kansas. This is a better fit for the company, said Ellerton.

We are ground floor people, he said. This way we are not buying other peoples stuff at a huge mark up.

The company plans to begin a pilot drilling programme on the CBM lands next year. 2007 is starting to look very busy...


http://www.oilbarrel.com/email_index.html?page=/news/article.html?body=1&key=oilbarrel_en:1150423205&feed=oilbarrel_en