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

Nice result for all us long time holders, shame MRJ isn't still posting as I bet drinks would have been inorder.

I've just read the report, and it's exellent, i will now try to get in at a good price.
2007 p/e of 2 is too good to pass by for an oil company.

The reason i didnt by earlier was becuase i didn't understand what they were doing with all the oil revenue, but the projected 2007 earnings have shown me that
this must have been down to blowout costs higher than normal costs and some debts.

By the way have hardman got any reports for Europa Oil + Gas for this year.

Amities / Word on da street says the massive overhang on this stock has been definately spent. That really is an albatross of their back Coupled with both Hardmans decent report and the end of the main tenet of expensive litigation perhaps therin lies the reasoning behind the sudden mark up of over 100% yesterday.,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, l would not be surprised if there are a few RNS 's within a few days regarding notifiable interests as it appears a few principal positions were taken yesterday . ..Volume has allowed the mid to surpass the vital lp level during interday trading both today and yesterday. .Almost 200 mill traded in 2 days. . Pity tommorrow is saturday as the buying momentum is on the ascendancy and the selling dipping . This is a very healthy market with both buyers and sellers { Most of the 1m+ sellers are those banking 400% profit after partcipating in the massive placing @ 0.25p.....But now the ratios of buys are outstripping sells . Monday will see that 1p level breached again as people tend to profit-take on a Friday as opposed to monday. lf volume can remain at this level next week { which i fully anticipate }we could see 1p as the point of definitive support by midweek ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.Also with being such a tiddler there is nothing to fear from shorters. . Such volume attracts big traders both buying and selling which in itself provides exxagerated volatility and i PERSONALLY believe SER will see 2/3p in interday trading within a few weeks before the market either corrects itself or the shares are in involved in consolidation . How can anyone be against a share consolidation ? EEN where in an identical position 18 months or so ago and look how well it has served their interests. .................................................................................................................................................................................................................. ..A 15~ 1 share consolidation sounds ideal. Why not ? Our fundementals stand the most vigerous scrutiny .Gearing is remarkably low .Plus . Believe me . The geopoltics of oil make it virtually impossible in the short and medium term for a bbl of oil to veer far from $70/80 ( using WTI as the median } so we have quite a stream of stable fiscal revenues. A share price of say 15p and once accorded a typical mining sector p/e ratio SER would hit the radar of most smallcap specialists and high value individuals & attract a broader sharebase than does SER @ 0.003p price tag of 0.3p and people dont perceive a highly aggresive, well run growth stock but more of a dying dog. ). The more conservative of those eeking out a future JKX , BUR,DNX,or VPO wouldnt even give it a second look without realizing they have missed out on a ten bagger > Lot of money to be made from this stock for both trader and investor alike . ..............Bonne chance mes potes . Faires attention ....@+ J,

Its all good and I know there are some long term holders on this thread like I sitting on a fair few million of these gathered at the low .25's..... ker-ching!!

when is the AGM/EGM?[re vote on consoildation]
am in for the long haul now i have sorted out my overzealousness.

explosive,
didnt manage to get in again at a SP i was happy with[not as many profit takers as i thought] will keep an eye out though.
Alex

The AGM is 10 July at 10am, and it is an AGM not an EGM. .68p is a very good level to top up in the morning robert, good luck.

Alex - Look on the bright side, you've made a play and profit from the sound of things. How low over the next week do you think this will go? I wouldn't be surprised to see further falling and a bid of .45 within the next 7 days. The sp hasn't found its feet yet and its only speculation that a support level maybe higher.....
Moonshine - Why is .68 a very good price to top up on? The sp has been falling since last weeks Hardman report.

explosive .... delighted for you, but rememeber a profit is no profit until banked; whether or not you should take some profits now is not for me to say, but it is a racing certainty that if you truly have millions of this stock, then it could prove difficult to unload should you decide to in a lump.

Thanks for the concern cynic, I am aware that all I currently have is a paper profit until I receive that all important contract note of sale from my broker. Not looking to unload any shares at the moment, happy to hold!! On the how low do you think it'll go question I'd be grateful to hear your thoughts???

No idea m8 ..... don't hold any but have been idly following ...... mini-minnows are always diificult to predict for they can be exceptionally volatile as i am sure you are all too well aware ..... confess that I am not that comfortable with the markets in general at the moment, and hard commodities (and their attaching shares) in particular

explosive
Well .68 looked OK to me so I bought in yesterday happy to hold long term.

explosive, there seem to have been several MM buys at the .68p level, yesterday and another one so far today. It seems to me that .68p is a level that the MMs are happy to balance their books at. There seem to be a lot of buyers around the .68/.70p level, but not too many sellers when they drop it to .60p. Also not long to the AGM, and I would expect a general drift upwards to 10/07.

Mark Parfitt of Hardman & Co will be at the AGM, and he is going to be answering questions on his report. Plus there may be news about the TEG Canada sale, production figures for the last 3 months and they may give out details of financial backing to develop CBM & more wells at Tapia.

That's why I think .68p is a good top up level, but it is just my opinion. DYOR etc, etc.

Cynic, driver and moonshine thanks for your posts...

Date Closing price Open High Low Volume RiskGrade
29-Jun-2006 0.65p 0.66p 0.68p 0.61p 25,784,076 n/a
28-Jun-2006 0.66p 0.65p 0.71p 0.64p 17,879,422 1,245
27-Jun-2006 0.64p 0.64p 0.70p 0.64p 25,697,432 1,263
26-Jun-2006 0.64p 0.70p 0.78p 0.64p 38,234,084 1,283
23-Jun-2006 0.70p 0.85p 1.00p 0.68p 92,200,456 1,297
22-Jun-2006 0.81p 0.35p 1.12p 0.35p 155,315,888 1,300
21-Jun-2006 0.35p 0.35p 0.35p 0.35p 3,243,264 598
20-Jun-2006 0.35p 0.38p 0.38p 0.35p 3,558,997 607
19-Jun-2006 0.38p 0.40p 0.40p 0.38p 457,431 609

An AGM followed by a week or two will show us for sure where the confidence level lies... As high as possible I hope and would love to see 1.00, especially if a 15-1 consolidation is to be approved!!

Been in this one for close on 2 years, pulled out fully today very nice return new car on the way. Pull out purely on the 15-1 consolidation had experence with 3 companies who consoldated to the good of no invester thus far i.e global marine cybit holdings. Looks good long term may reinvest once the consolidation settles.
Hope I am wrong good look to you all.

mcmahons - Can honestly say I share your opion on the consolidation and not happy about it myself!! Anyway have decided to ride it out in the hope that I don't get stung.......................... erm yes I know... It all ends the era of when SER was a good buy at .25 to quick sell at .39~.42 for a fast profit, a time I'm sure your remember well. Anyway best of luck on your decision and what car did you have in mind?

The way I look at consolidation is that it is the market cap which is important, not the number of shares. The market cap of SER is far too low, whether they have 1.62 bln shares @ .60p, or 109m shares @ 9p. The company is due a re-rating, and with or without a consolidation, it will be re-rated in time. Maybe when the interims are released mid-September, or maybe not until the year end 2006 results are published. But I feel certain a re-rating will occur which will take the market cap to the level that Hardman predicted ($102M without pricing in CBM).

IMHO, DYOR. A good place to start is the Hardman report: http://www.hardmanandco.com/Research/Sefton_June_2006.pdf

and the proactiveinvestor articles written in February, http://www.proactiveinvestors.com.

Incidentally, I emailed Ian McLellan (who wrote the two articles for proactiveinvestors) after the results were published. He reckoned the results were 'very good' and he hoped to meet up with Jim Ellington around the AGM when JE is in the UK. If they got together Ian thought he would write another article for proactiveinvestors.com.

we lost Volume on friday,bids still aboVe .6 but may start sliping back to .5 as it can be a bit nerVy waiting for share consolidation.i think all news will be at agm not before.it should all be good news albeit later than origanaly forcast for oil production increase.still there best year eVer,in profit turnoVer should double for 07. holding may top up if we haVe good dip.

Sefton Resources Inc
03 July 2006



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

Sefton Resources is pleased to announce that on 30 June 2006 it signed an
agreement to sell its subsidiary, TEG Oil & Gas Canada, Inc ('TEG Canada') to
Mark R Smith, with closing scheduled for later this week. This is further to the
statement contained in the announcement of the Company's final results on 14
June 2006 that it was in discussions to sell TEG Canada.

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 and, as announced on 21 February 2006, that
better value would be generated by seeking to dispose of it (having first made
it a wholly owned subsidiary). For the year ending 31 December 2005, TEG Canada
made a loss of CDN$145,792. As at 31 December 2005, the value of the assets of
TEG Canada was CDN$1,766,025. However prior to the signing of the sale
agreement, there was a restructuring such that only the Canadian assets of TEG
Canada, valued at CDN$531,455, now remain in that company.

The consideration of US$450,000 is to be satisfied in cash, but the amount is
subject to upward or downward adjustment dependent on, inter alia, the amount of
working capital of TEG Canada on 1 May 2006 (which is to be calculated, as
agreed between the parties). The Company plans to use the proceeds of the
disposal to further develop its Eastern Kansas assets.

For further information, contact:

John James (Jim) Ellerton, Chairman & CEO Tel: 00 1 303 759 2700

Jeremy Delmar-Morgan, Director Tel: 020 8748 4066

David Millham, Investor Relations Tel: 020 7796 9999




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

theres news i got that no news of my last post wrong,400k dollers should be enough for a couple of new wells. Volume building again,any more oils out there in profit for under 1p.

spread narrowing .68 bid someone looking for stock,and geting it ,profit taking from the 100% gainers.i may haVe a top slice if we get to 2p. for tax bill and new kitchen.