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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)
ptholden
- 05 Aug 2006 18:57
- 15 of 2350
Mr Cynic, which bit?
I have included a link in the header to update the spot price of California Crude - 02 Aug = $69, which is actually not much of a discount to Brent or anything else. Read up a little on 'huff n puff' techniques, recovery of the reserves will probably see both me and you out!!
pth
I have included a link in the header to update the spot price of California Crude - 02 Aug = $69, which is actually not much of a discount to Brent or anything else. Read up a little on 'huff n puff' techniques, recovery of the reserves will probably see both me and you out!!
pth
bosley
- 05 Aug 2006 19:50
- 16 of 2350
nice thread , pete.
cynic
- 05 Aug 2006 20:11
- 17 of 2350
that although steam assuredly increases the recovery by lessening viscosity, the % recovered is still significantly less than from light crude reservoirs
Mr Turbot - 05 Aug 2006 20:44 - 18 of 2350
I am considering an investment in Sefton. Excellent llink ptholden.
Gives me a good insight. I guess amber is for caution as with all these oil stocks at the moment , but looks to have potential. Still watching BLR thats having good coverage at the moment
Gives me a good insight. I guess amber is for caution as with all these oil stocks at the moment , but looks to have potential. Still watching BLR thats having good coverage at the moment
ptholden
- 05 Aug 2006 20:55
- 19 of 2350
Mr Cynic
Whats the 'significantly less' percentage? I don't know, please enlighten me.
pth
Whats the 'significantly less' percentage? I don't know, please enlighten me.
pth
ptholden
- 06 Aug 2006 17:07
- 20 of 2350
I'll answer my own question:
STEAM ASSISTED GRAVITY DRAINAGE (SAGD)
Until very recently, heavy oil fields were produced either by primary production techniques, or through huffn puff. These techniques improve the percentage of reserves recovered but still leave behind significant quantities of the original oil in place.
SAGD involves injecting steam through some wells and producing oil through others on a continuous basis. The heat reduces the viscosity of the oil thereby significantly increasing production rates and the percentage of oil in place that is recoverable. The benefits of his continuous process have been demonstrated in other oil fields where actual flow rates and projected total reserve recovery ratios have shown a considerable improvement.
This technique, particularly when used together with other steam recovery processes, can result in recovery rates of up to 80% of the original oil in place in a heavy oil field such as the Tapia Canyon field.
STEAM ASSISTED GRAVITY DRAINAGE (SAGD)
Until very recently, heavy oil fields were produced either by primary production techniques, or through huffn puff. These techniques improve the percentage of reserves recovered but still leave behind significant quantities of the original oil in place.
SAGD involves injecting steam through some wells and producing oil through others on a continuous basis. The heat reduces the viscosity of the oil thereby significantly increasing production rates and the percentage of oil in place that is recoverable. The benefits of his continuous process have been demonstrated in other oil fields where actual flow rates and projected total reserve recovery ratios have shown a considerable improvement.
This technique, particularly when used together with other steam recovery processes, can result in recovery rates of up to 80% of the original oil in place in a heavy oil field such as the Tapia Canyon field.
ptholden
- 06 Aug 2006 22:18
- 21 of 2350
It would appear that SER are not overly keen to commence SAGD recovery at present. As the process stops oil recovery whilst that particular well is being injected, SER prefer to concentrate on revenue generation. Later in the year 9 new wells are planned for the Tapia field, I would imagine that once these are brought on line they will provide spare capacity for SAGD to commence, if SER consider implementation appropriate.
pth
pth
markusantonius
- 07 Aug 2006 00:11
- 22 of 2350
Pete, a PEST Analysis =
Political
Economical
Social
Technolgical - ANALYSIS
After your splendid attempt at SWOT, I thought a man of your high esteem would automatically know this!
Political
Economical
Social
Technolgical - ANALYSIS
After your splendid attempt at SWOT, I thought a man of your high esteem would automatically know this!
moonshine - 07 Aug 2006 10:39 - 23 of 2350
Nice thread pt.
wrt the viscosity of oil produced by Sefton, this is from Sefton's website:
Oil produced at Tapia is moderately heavy, about 18 degrees API, and asphaltic. As such, its use is mainly for road surfacing, and to a lesser degree, fuel oil. When pricing our oil, the dollar amount for Wilmington 17 crude is used, with a slight upward allowance for our 18-degree oil. The Directors believe that the oil field is geographically well placed for its products uses.
Average oil gravity is [at Eureka] approximately 26 API.
I believe that SER the oil at Tapia has a discount of $10 to the price of Nymex Crude, I'm not sure about the price for Eureka's oil, but don't think that is discounted.
As regards SAGD, because there are a couple of faults running through the Tapia canyon they are going to implement huff'n'puff first. If this is successful, they will move on to SAGD, but they will not do anything to put oil production at risk.
wrt the viscosity of oil produced by Sefton, this is from Sefton's website:
Oil produced at Tapia is moderately heavy, about 18 degrees API, and asphaltic. As such, its use is mainly for road surfacing, and to a lesser degree, fuel oil. When pricing our oil, the dollar amount for Wilmington 17 crude is used, with a slight upward allowance for our 18-degree oil. The Directors believe that the oil field is geographically well placed for its products uses.
Average oil gravity is [at Eureka] approximately 26 API.
I believe that SER the oil at Tapia has a discount of $10 to the price of Nymex Crude, I'm not sure about the price for Eureka's oil, but don't think that is discounted.
As regards SAGD, because there are a couple of faults running through the Tapia canyon they are going to implement huff'n'puff first. If this is successful, they will move on to SAGD, but they will not do anything to put oil production at risk.
ptholden
- 07 Aug 2006 14:09
- 24 of 2350
Well Mark, seeing that you know what it stands for, feel free to crack on and do some research of your own! Although quite what you will come up with I'm not sure, we are talking about California here, not Basra or Southern Lebanon!!
As a rough guess:
Political - stable (although Bush will probably blow up San Fransisco when he gets bored with the Middle East)
Economical - Loads of money in California and desperate for oil / gas (oh, as long as it doesn't come out of my backyard)
Social - Lots if illegal immigrants from Mexico / Central America to work the fields.
Technological - Already covered by Huff n Puff / SAGD.
There you go, done it all for you already.
pth
As a rough guess:
Political - stable (although Bush will probably blow up San Fransisco when he gets bored with the Middle East)
Economical - Loads of money in California and desperate for oil / gas (oh, as long as it doesn't come out of my backyard)
Social - Lots if illegal immigrants from Mexico / Central America to work the fields.
Technological - Already covered by Huff n Puff / SAGD.
There you go, done it all for you already.
pth
markusantonius
- 07 Aug 2006 14:32
- 25 of 2350
Oh, you do tend to "waffle", Pete. OK, try this...
Politically: - stable country.
Economically: - stable Western democracy.
Socially: - huge demand for product & socially acceptable.
Technologically: - infrastructure already in place to exploit it to its full potential.
M.
Politically: - stable country.
Economically: - stable Western democracy.
Socially: - huge demand for product & socially acceptable.
Technologically: - infrastructure already in place to exploit it to its full potential.
M.
ptholden
- 07 Aug 2006 17:12
- 26 of 2350
Well done Markie, you can go back to bed now :-)
The LSE really need to get the NMS of SER sorted out. A miserly 3000 shares gives us even less visibilty than normal. The MMs can do what they want with late / delayed reported trades and no-one has a scooby as to what is actually going on.
pth
The LSE really need to get the NMS of SER sorted out. A miserly 3000 shares gives us even less visibilty than normal. The MMs can do what they want with late / delayed reported trades and no-one has a scooby as to what is actually going on.
pth
Laila25 - 07 Aug 2006 20:18 - 27 of 2350
All shares fall after consolidation...expect no exception here. 4-5 pence short term target price once all the excitement dies away in the coming wks.
ptholden
- 07 Aug 2006 20:22
- 28 of 2350
The ramping LaLa puts in an appearance. All views welcome, even those only posting here in retribution for my comments on the DMR thread. I would only ask that you try not to post lies LaLa, not all shares fall following consolidation. But then you and the truth are not close allies I'm afraid.
If SER falls it falls, we shall see.
pth
If SER falls it falls, we shall see.
pth
Laila25 - 07 Aug 2006 20:23 - 29 of 2350
Yes we shall c indeed.....all stocks fall and are dead duds after consolidation. Sefton will be no exception.
ptholden
- 07 Aug 2006 20:48
- 30 of 2350
Post the truth LaLa not lies.
Not ALL consolidation stocks fall and become dead duds.
One example: Emerald Energy consolidated July/Aug 2004 at 1.20 per share. This year they had risen to 3.60ish, even now they are nearly double the consolidation price.
I can also give instances where consolidation has been a desperate attempt to keep a company going, but that isn't the point.
I don't mind you being negative with regard to SER prospects, but please attempt to post the truth, although I expect it may be a difficult concept for you.
pth
Not ALL consolidation stocks fall and become dead duds.
One example: Emerald Energy consolidated July/Aug 2004 at 1.20 per share. This year they had risen to 3.60ish, even now they are nearly double the consolidation price.
I can also give instances where consolidation has been a desperate attempt to keep a company going, but that isn't the point.
I don't mind you being negative with regard to SER prospects, but please attempt to post the truth, although I expect it may be a difficult concept for you.
pth
Laila25 - 07 Aug 2006 20:56 - 31 of 2350
Yeah whatever...I think 5 pence is coming...you just upset coz I ain't positive and ramping 50 pence.
5 pence soon.
5 pence soon.
ptholden
- 07 Aug 2006 21:08
- 32 of 2350
Once again LaLa you fail to answer the argument and by failing to do so, you display a complete lack of credibility or integrity.
Why would I be upset? This thread was started as an alternative to the ramping thread that preceeded it, the last thing I want is for you to start ramping SER. You and all your aliases (Sue Helen etc) are known as the biggest rampers on the Internet. Were you to become postive on SER, any potential investor wouldn't take the thread seriously, so keep shouting 5p as loud as you like. You just don't get it do you? No-one listens to you anymore, your ramping / de-ramping career is over.
pth
Why would I be upset? This thread was started as an alternative to the ramping thread that preceeded it, the last thing I want is for you to start ramping SER. You and all your aliases (Sue Helen etc) are known as the biggest rampers on the Internet. Were you to become postive on SER, any potential investor wouldn't take the thread seriously, so keep shouting 5p as loud as you like. You just don't get it do you? No-one listens to you anymore, your ramping / de-ramping career is over.
pth
ptholden
- 07 Aug 2006 21:09
- 33 of 2350
Oh, and do keep posting, it keeps the thread at the top of the board :-))
Laila25 - 07 Aug 2006 22:33 - 34 of 2350
Nah think 5 pence soon....all shares fall considerably after consolidation.
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