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SEFTON RESOURCES INC - UNDERRATED OIL PRODUCER (SER)
ptholden
- 04 Aug 2006 19:53
Sefton Resources is an independent AIM quoted Oil and Gas company operating in the US. The companys principal current assets are two producing oilfields in California (Tapia Canyon Field and Eureka Canyon Field); it is also in the process of buying up prospective coal bed methane acreage (CBM) in Kansas.
Update from July 2007 AGM
Finance
I revealed in my annual statement that discussions were well advanced with
Banking institutions. The final phase of the agreement with a suitable bank
without complex and restrictive terms is now very near. This is weeks away
rather than months.
Oil
Oil production at Tapia has averaged 4,100 BO during the last five months. Which
is in line with last years levels. Once this finance is in place we will be able
to move ahead with drilling.
Drilling
We have stayed close to drilling contractors and we are ready to move forward
quickly when this finance is available.
Steam generation
The equipment is now in place at Tapia. Preparation time is needed to connect
the equipment and carry out the necessary trials required to get the main work
started. We anticipate this steaming will start in the next couple of months. If
successful a significant amount of oil resources will move into the Proven
Producing Reserves category.
Joint Ventures
Discussions continue with a number of interested parties to develop our Anderson
counties gas assets.
New finance team
A new CFO has been appointed with good knowledge and experience of the oil
industry. A new assistant to undertake all the daily needs has also been
appointed.
SWOT ANALYSIS
STRENGTHS:
Sefton has two oil fields, both producing. One is already profitable, and the other is breaking even. This should generate good cashflow for the company over the medium term.
Sefton owns 100% of both its major oil interests and is now demerging its non-controlled oil interests in order to concentrate on those where it has full control (Sefton has recently disposed of its Canadian assets for CDN450k cash).
Sefton is establishing a track record of using modern extraction technologies to improve the efficiency of its fields.
WEAKNESSES:
Sefton has suffered from a number of one-off factors. While these were out of the companys control the problems it has faced since 2002 have held back development and taken up management time. Investor disenchantment may account for the current low rating.
OPPORTUNITIES:
Sefton has acquired acreage for CBM (coal bed methane) in Kansas. CBM gas production is a thriving market and Sefton believes it has acquired the acreage at advantageous prices. While this is a longer term prospect it is an exciting one and could eventually eclipse the oil interests.
There are a number of other fields in the Ventura Basin and more generally in California as a whole that Sefton may look to target now its cash flows are stronger.
Eureka is a semi-exploration play which may contain further upside. This cannot yet be evaluated.
At this valuation the company may prove an attractive target for a larger player.
THREATS
Owing to its geographical location the company continues to be exposed to the threat of bush fires, canyon floods and geological interruption (earthquake risk). Sefton is taking steps to mitigate this risk by investing in Kansas and although Forest Basin area is susceptible to tornados - gas facilities have a minimal surface footprint.
LINKS:
Sefton Resources Web Site
Quarterly Update (Mar 08)
Operations Update Dated 14 January 2008
Hardman Report
Final Results - Year Ended 31 Dec 2006
2007 AGM & Update
In The News - Oil Barrel Dated 31 January 2007
Daily California Crude Oil Prices (MIDWAY SUNSET 13)
rhino213
- 17 Dec 2007 13:35
- 1411 of 2350
I hope so. Been holding for ages now and have seen this situation before. I just hope this time that demand for the shares goes up and MM's all die over the christmas break.
Hopefully the combination of these 2 factors will give us a truly reflective SP of 20p+.
All i want for christmas.......
Hopefully the combination of these 2 factors will give us a truly reflective SP of 20p+.
All i want for christmas.......
cynic
- 17 Dec 2007 13:40
- 1412 of 2350
as i have warned before, sp of minnows and min-minnows over-reacts on minimal volumes
Greyhound - 17 Dec 2007 13:48 - 1413 of 2350
Grateful to have steered clear this time round.
SECRUOSER
- 17 Dec 2007 13:54
- 1414 of 2350
cynic,
There is over-reaction and then there is this! An utterly bizarre reaction both to the amount of selling and to what was ultimately positive newsflow.
There is over-reaction and then there is this! An utterly bizarre reaction both to the amount of selling and to what was ultimately positive newsflow.
cynic
- 17 Dec 2007 14:43
- 1415 of 2350
not bizarre at all ..... the stock has minimal liquidity and the brokers don't want it ..... if you want to sell or are forced to, then you pay the penalty
SECRUOSER
- 17 Dec 2007 16:20
- 1416 of 2350
80k net selling (£4000) and a 20% drop in the bid, knocking over £1m from the value of the company. What a market LOL!
Edit> Make that 40k (£2000) !
Edit> Make that 40k (£2000) !
SECRUOSER
- 17 Dec 2007 16:22
- 1417 of 2350
So really would you say it is the sentiment of the brokers that is the issue here, cynic? If so, what can be done or what will have to happen for this to change?
cynic
- 17 Dec 2007 16:41
- 1418 of 2350
SER will have to get some decent-sized cap under its belt! ...... even that is no guarantee ..... meanwhile, investors who want to exit will just have to bite the bullet, always assuming MMs will accept the stock at all
driver
- 17 Dec 2007 16:56
- 1419 of 2350
cynic
Agree if you exit now but I see no problem when the sp is 30p you will be able to exit at 29.75p.
Agree if you exit now but I see no problem when the sp is 30p you will be able to exit at 29.75p.
cynic
- 17 Dec 2007 17:18
- 1420 of 2350
sorry old son, but that really is wishful thinking ..... few investors top-slice - i.e. sell into a rising market ..... nearly all (myself certainly included) want to bail out when the markets are getting rough, and the scenario then is exactly as i painted it.
SECRUOSER
- 17 Dec 2007 17:20
- 1421 of 2350
cynic,
But surely you accept that what 'nearly all' do, ie buy when prices are high, sell when prices are low, is the wrong way around, and the few investors that do the exact opposite (such as Warren Buffet) in the long term will be the ones that acheive great wealth?
But surely you accept that what 'nearly all' do, ie buy when prices are high, sell when prices are low, is the wrong way around, and the few investors that do the exact opposite (such as Warren Buffet) in the long term will be the ones that acheive great wealth?
cynic
- 17 Dec 2007 17:28
- 1422 of 2350
one may still sell when prices are high, or at least relatively so against one's purchase price, but that does not avoid the situation i outlined
i also note that the spread is currently shown as 4.50/6.00, which is presumably a further indication that MMs just do not want the stock, effectively at any price
i also note that the spread is currently shown as 4.50/6.00, which is presumably a further indication that MMs just do not want the stock, effectively at any price
SECRUOSER
- 19 Dec 2007 10:47
- 1423 of 2350
Hardman December newsletter: http://www.capmarkets.com/ViewFile.asp?ID1=83693&ID2=192819609&ssid=1&directory=12925&bm=0&filename=December_07_Monthly.pdf
"Sefton Resources has updated the market on production from TEG Oil & Gas USA's
recently drilled wells Hartje #16 & #17 on the Tapia Oil Field. After the initial flush production, rates have now settled to 47 and 28 BOPD 'on average'. It is obviously
too early to report 30-day rates as the appropriate timeframes have not yet passed.
TEG is modifying its steam pilot test program at Tapia as gas flow rates from the
Yule#8 well have proved to be variable – tripping safety cut-offs on the generator. Continuing with this would deliver conclusive results and be counterproductive.
We expect TEG to switch to using propane gas for the initial steam pilot programme over the next few weeks.
There is plenty of gas to be tapped on the field should itbe needed to fuel a full steaming regime and this very minor delay will make no odds at the end of the day."
"Sefton Resources has updated the market on production from TEG Oil & Gas USA's
recently drilled wells Hartje #16 & #17 on the Tapia Oil Field. After the initial flush production, rates have now settled to 47 and 28 BOPD 'on average'. It is obviously
too early to report 30-day rates as the appropriate timeframes have not yet passed.
TEG is modifying its steam pilot test program at Tapia as gas flow rates from the
Yule#8 well have proved to be variable – tripping safety cut-offs on the generator. Continuing with this would deliver conclusive results and be counterproductive.
We expect TEG to switch to using propane gas for the initial steam pilot programme over the next few weeks.
There is plenty of gas to be tapped on the field should itbe needed to fuel a full steaming regime and this very minor delay will make no odds at the end of the day."
kkeith2000
- 19 Dec 2007 14:46
- 1424 of 2350
Looks like WINS took a few then went straight to the offer, the graph is looking awful now can now only hope that 2008 brings a little more cheer for the long term holders
SECRUOSER
- 19 Dec 2007 14:48
- 1425 of 2350
Still dropping on low volumes. I'm consoling myself by saying no way would I be able to pick up my entire holding now at this price.
Only 15k on offer at 5.08p.
..May have to raid my xmas funds and get myself an early xmas present!!
Only 15k on offer at 5.08p.
..May have to raid my xmas funds and get myself an early xmas present!!
kkeith2000
- 19 Dec 2007 14:49
- 1426 of 2350
Thanks SECRUOSER for the Hardman December newsletter
SECRUOSER
- 20 Dec 2007 13:39
- 1427 of 2350
New company profile on Oilbarrel http://www.oilbarrel.com/home.html
kkeith2000
- 20 Dec 2007 13:58
- 1428 of 2350
Can't at the moment get anything SECRUOSER, any chance you can post the article on here when you get time
Thanks Keith
Edit Found it now
Thanks Keith
Edit Found it now
driver
- 20 Dec 2007 15:05
- 1429 of 2350
Oilbarrel
Company Profile (14:16 18/12/07)
Denver-based Sefton Resources listed on London’s Alternative Investment Market in 2000. It owns 100 per cent of two oilfields in California, Tapia Canyon and Eureka Canyon, plus prospective gas projects in Kansas.
California is the main focus, particularly the Tapia Canyon heavy oilfield. The Tapia Canyon covers 280 acres and lies about 40 miles north of Los Angeles. Intex discovered the field in 1957, when the Yule-2 well flowed 120 barrels of oil per day (bpd) of 18 degree API oil. The field has suffered from under-investment, having been rendered uneconomic by past oil price slumps. Today’s high oil prices have transformed the economics, however, and Sefton has every incentive to get after the remaining reserve base.
2007, however, saw a long hiatus in new drilling work due to funding constraints and rig shortages, frustrations shared by many E&P companies. By the back-end of 2007, however, Sefton had the funding and hardware in place to resume drilling work and monetize the potential of the Tapia Canyon field. This development plan involves drilling 18 new wells, of which two, Hartje-16 and -17, had been successfully drilled by the end of November 2007.
There are also plans for enhanced oil recovery, particularly cyclic steam injection stimulation using gas held in the field’s shallower formations. The Yule-8 gas supply well, which flowed over 1 million cubic feet of gas per day on test in 2004, is being cleaned up and readied to begin pilot steam production in early 2008. Conventional drilling should see production ramp up to 150,000 barrels a year by 2009, with steam-enhanced recovery possibly more than doubling this rate.
The Eureka Canyon field lies about 20 miles west of Tapia. The medium-gravity field has a longstanding pedigree, having been discovered in 1893 and producing ever since. The company plans to upgrade the surface facilities and possibly start drilling work in 2008.
In addition to the California assets, Sefton holds coal bed methane acreage in the Forest City Basin of Eastern Kansas. Test drilling may get underway here in the first half of 2008.
Company Profile (14:16 18/12/07)
Denver-based Sefton Resources listed on London’s Alternative Investment Market in 2000. It owns 100 per cent of two oilfields in California, Tapia Canyon and Eureka Canyon, plus prospective gas projects in Kansas.
California is the main focus, particularly the Tapia Canyon heavy oilfield. The Tapia Canyon covers 280 acres and lies about 40 miles north of Los Angeles. Intex discovered the field in 1957, when the Yule-2 well flowed 120 barrels of oil per day (bpd) of 18 degree API oil. The field has suffered from under-investment, having been rendered uneconomic by past oil price slumps. Today’s high oil prices have transformed the economics, however, and Sefton has every incentive to get after the remaining reserve base.
2007, however, saw a long hiatus in new drilling work due to funding constraints and rig shortages, frustrations shared by many E&P companies. By the back-end of 2007, however, Sefton had the funding and hardware in place to resume drilling work and monetize the potential of the Tapia Canyon field. This development plan involves drilling 18 new wells, of which two, Hartje-16 and -17, had been successfully drilled by the end of November 2007.
There are also plans for enhanced oil recovery, particularly cyclic steam injection stimulation using gas held in the field’s shallower formations. The Yule-8 gas supply well, which flowed over 1 million cubic feet of gas per day on test in 2004, is being cleaned up and readied to begin pilot steam production in early 2008. Conventional drilling should see production ramp up to 150,000 barrels a year by 2009, with steam-enhanced recovery possibly more than doubling this rate.
The Eureka Canyon field lies about 20 miles west of Tapia. The medium-gravity field has a longstanding pedigree, having been discovered in 1893 and producing ever since. The company plans to upgrade the surface facilities and possibly start drilling work in 2008.
In addition to the California assets, Sefton holds coal bed methane acreage in the Forest City Basin of Eastern Kansas. Test drilling may get underway here in the first half of 2008.
capetown
- 20 Dec 2007 15:46
- 1430 of 2350
Meanwhile the SP is not flying driver,lets hope it does in 2008,have a good one.
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