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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)

Chart.aspx?Provider=EODIntra&Code=SER&Si

rhino213 - 13 Mar 2008 08:50 - 1569 of 2350

haven't seen anything come out yet.......should be due something soon though.

rhino213 - 13 Mar 2008 11:45 - 1570 of 2350

208k buy vs 350k sell so far. I wonder what they know?

capetown - 13 Mar 2008 12:41 - 1571 of 2350

Wonder if the 165k trades x2 were a rollover?,if not maybee its time for some movement.

driver - 13 Mar 2008 13:02 - 1572 of 2350

Oil at $110

aldwickk - 13 Mar 2008 13:04 - 1573 of 2350

If they were rollovers they would more likely to show up at the end of the days trades, can't ever remember seeing any showing up at midday, and they are not marked down as late trades.

relishing - 13 Mar 2008 13:14 - 1574 of 2350

Rollovers show up at the time when they are executed, whether that be 9am, 12pm or 2:36pm. Can't ever remember seeing any showing up at the end of the days trades.

capetown - 13 Mar 2008 13:38 - 1575 of 2350

I thought rollovers showed up at anytime ,but seconds apart.

relishing - 13 Mar 2008 14:11 - 1576 of 2350

Correct.

aldwickk - 13 Mar 2008 16:17 - 1577 of 2350

Is OK a rollover ?

Latest Trades
Time Price Volume Value Buy/Sell Type
15:48 5.95p 40,000 2,380 Buy O
13:39 5.80p 10,000 580 Buy O
11:39 6.00p 165,000 9,900 Buy OK
11:39 5.95p 165,000 9,818 Buy OK
12:16 5.80p 10,000 580 Buy O

rhino213 - 17 Mar 2008 12:39 - 1578 of 2350

500k buys today so far and the price drops a bit. WTF???

relishing - 17 Mar 2008 12:39 - 1579 of 2350

R O L L O V E R !

rhino213 - 17 Mar 2008 14:20 - 1580 of 2350

Isn't that cheating? Sefton have more rollovers than the national lottery!

capetown - 18 Mar 2008 15:41 - 1581 of 2350

Keeping the faith with a 1.1 mill ROLLOVER!!

relishing - 18 Mar 2008 15:49 - 1582 of 2350

Indeed. Getting on for 1% of the entire company that position!

halifax - 18 Mar 2008 19:16 - 1583 of 2350

We love rock and roll!!

capetown - 19 Mar 2008 08:11 - 1584 of 2350

driver et all

yesssssssssssssssssssssssssssssssssss

kkeith2000 - 19 Mar 2008 09:27 - 1585 of 2350

Morning all
With you a little busy among all the excitement Relishing thought i would post this very good news

Sefton Resources Inc
19 March 2008



SEFTON RESOURCES, INC ('Sefton' or the 'Company')

QUARTERLY UPDATE

Sefton Resources, Inc., the AIM listed oil and gas production company with
assets in California and Kansas, announces that its wholly owned subsidiary TEG
Oil and Gas USA, Inc. ('TEG USA') has completed successful drilling at its
eleventh well. TEG USA has now successfully drilled all of the leases, thus
extending production in the entire Tapia field. In addition, TEG USA will
initiate a pilot steam programme on March 20, 2008 on two wells at its Yule
Lease. Recent drilling since November, 2007 has significantly improved cash flow
and the four additional wells should add to this improvement.

Q1 Drilling Programme Complete

TEG USA has successfully completed the Q1 2008 four-well drilling programme at
its Tapia oil field in California. Each of the four step-out wells encountered
greater than 90 feet of oil-saturated Yule sandstone reservoir as follows:

WELL OIL ZONE THICKNESS

Snow #3 142 feet
Snow #4 106 feet
Snow #5 96 feet
Lackie #A-4 92 feet

All four wells had excellent mudlog oil shows while drilling, with oil in the
rock cuttings and drilling mud. Wireline logs in all wells displayed resistivity
readings indicative of oil productive sands. These appear equal to, or better
than, TEG USA's other development wells drilled in the field over the past two
years. These results are particularly exciting since these wells extend TEG
USA's productive area of the Tapia field, both to the west (Snow wells) and to
the east (Lackie well). Sefton anticipates that the Snow wells will be placed on
production within a week and the Lackie well later, once flow lines and
electrical facilities are extended to this lease. Tank facilities for these
recent wells have recently been completed.

Gas Zones Verified

Natural gas bearing sandstones were identified in all four wells drilled at a
depth of approximately 800 feet. The gas sands encountered were approximately 20
feet in thickness. In the Snow area, these results verify and expand earlier
volumetric mapping of the gas sands that had tested at a rate of over 1,200,000
cubic feet of gas per day in the Snow #1 well in December, 2003. It is this gas
that Sefton is in the process of piping to the steam generator.

The gas sand identified in the Lackie #A-4 well was previously unknown and may
add to the natural gas reserve base. No gas sands had previously been mapped
east of the Hartje #2 well, which is located approximately 700 feet west of the
recently drilled Lackie #A-4 well.

Additionally, an offset operator's well, the J.L. Brandon #2 well, encountered
gas at a similar depth as indicated on the mudlog when the well was drilled in
mid-January, 2008. TEG USA does not have copies of the Brandon well data, but
hopes to obtain copies when they are made public in approximately 60 to 90 days.
This well is located approximately 800 feet north of the Lackie #A-4 well.

Increased Water Handling Ability

TEG USA has completed the realignment of the produced water processing
facilities at the Tapia Field. The improvements have effectively doubled the
amount of produced water that can be processed at Tapia. Included in the
realignment was:

Reworking/acidizing the Hartje #8 injection well and returning it to
injection for use along with the Hartje #9 injection well.
Adding a produced water tank at the Yule Tank facility.
Adding a produced water tank at the Hartje tank facility.
Installing two new produced water transfer pumps.
Increasing the size of the produce water piping at the Yule and Hartje
facilities to handle high flow volumes.
Relocating the injection pump and installing a backup pump at a more
efficient location near the Hartje tank facility.
Installing new injection pipelines from the injection pumps to the Hartje
#8 and #9 injection wells.
Old water tanks for the Tapia field will be removed in the coming weeks.

This improvement should allow TEG USA to seamlessly add new wells to the
production stream and allow for increased water production spikes due to cyclic
steaming of the wells.

Cyclic Steaming

The 14 million BTU Steam Generator has been surface tested and tuned for the use
of propane as a temporary fuel. The testing of the steam generator by venting
steam at the surface was very impressive and exciting. The generator was
operated at 100% output design capacity during the testing. During the test the
nitrous oxide emissions recorded were 10ppm, well under the limits of the air
permit. Sefton has received the final permit for the propane tank from the LA
Air Quality Management District (AQMD). The steam generator is now capable of
running on both propane and natural gas. Sefton is in the process of laying a
gas supply from the Snow #1 gas well to the steam generator so both propane and
its own leased natural gas can be used at the Company's option. The Yule #7 well
has been prepared for steam injection which will commence on Thursday, March 20,
2008.

Further Development

Now that all leases have been drilled and steam testing will yield results
shortly, a comprehensive follow-up drilling and steaming development plan can be
formulated for implementation this year through the next several years.

Commenting, Jim Ellerton, CEO, said:

'We are extremely pleased that, with successful drilling results at Tapia and
improved cash flow, Sefton and its subsidiaries are now in the position of being
able to be flexible in deciding how to:
Complete the full development of Tapia Field
Further develop Eureka Canyon Field, and
Initiate a pilot drilling programme within its Kansas CBM acreage.'

The Company's website is being updated with regard to this announcement and will
also include items such as photographs, etc, which it is not possible to
disseminate via the regulatory information system.

For additional information visit
www.seftonresources.com

rhino213 - 19 Mar 2008 09:44 - 1586 of 2350

and we moved in the right direction for a change!

relishing - 19 Mar 2008 09:46 - 1587 of 2350

Cheers keith! Yes, excellent update.

capetown - 19 Mar 2008 09:49 - 1588 of 2350

Lets hope the SP HOLDS,
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