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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)
aldwickk
- 20 Mar 2008 16:03
- 1609 of 2350
You didn't expect it to hold on to yesterdays price , after whats happening to oil stocks today did you ?
driver
- 20 Mar 2008 16:57
- 1610 of 2350
aldwickk
Point taken most of the oilys on my watch list are red the oil price drop is temporary IMO as with the price of Gold it will bounce back and more.
http://www.nytimes.com/2008/03/20/business/20cnd-commodity.html?hp
Point taken most of the oilys on my watch list are red the oil price drop is temporary IMO as with the price of Gold it will bounce back and more.
http://www.nytimes.com/2008/03/20/business/20cnd-commodity.html?hp
2517GEORGE
- 20 Mar 2008 16:59
- 1611 of 2350
With reference to AMER; BRR: LEAD; PELE; SER; SEY and many others, there seems to be far more hype, hope and 'pie in the sky' dreaming not to mention wealth warnings. I have held all the above except SEY and sold LEAD some time ago, but still hold the other four, along with several others I could have included in the line-up. On a day to day basis these stocks seem like an endless wait for something to happen, the next rns is eagerly anticipated and when it fails to materialise ---?. I think these type of stocks should be put away and maybe looked at every couple of months. All imo of course. Have a good Easter everyone, and don't forget AMER rns is due by the end of the month ha! ha! Good luck all.
2517
2517
driver
- 20 Mar 2008 17:11
- 1612 of 2350
2517GEORGE
Pie in the sky Not SER did you read yesterdays RNS Go eat your eggs.
Pie in the sky Not SER did you read yesterdays RNS Go eat your eggs.
2517GEORGE
- 20 Mar 2008 17:18
- 1613 of 2350
Yes I did thanks driver, looks very promising, eventually (hope I'm proved wrong). I've got enough eggs in my basket of oilies, so I'll just have a bar of whole nut, cheers.
2517
2517
halifax - 20 Mar 2008 17:30 - 1614 of 2350
The proof of the "chocolate" will be in the eating whether a few more buckets (sorry barrels) of oil will actually make any significant difference to SER's financial position will only become clear when they produce their next accounts. This company floated on AIM in 2000 and has so far delivered absolutely nothing for its shareholders, although of course the directors have done rather well.
aldwickk
- 20 Mar 2008 17:45
- 1615 of 2350
Driver,
Yes, i agree regards oil & gold. I have added to my CEY,AFR & KYS.
Yes, i agree regards oil & gold. I have added to my CEY,AFR & KYS.
capetown
- 25 Mar 2008 14:12
- 1616 of 2350
There is a good POSITIVE article in oilbarrel,i would paste it but ncd.
rhino213
- 25 Mar 2008 16:01
- 1617 of 2350
what does ncd mean? Is it code for couldn't be bothered? :-D
maggiebt4
- 25 Mar 2008 16:09
- 1618 of 2350
Guess no can do?????
capetown
- 25 Mar 2008 16:37
- 1619 of 2350
No rhino it is not,maggie you guessed it right,
I dont know how to do it,but i am sure when our expert Driver gets here he will,
rhino if it was a case of couldent be bothered then i would not have posted in the first instance.
I dont know how to do it,but i am sure when our expert Driver gets here he will,
rhino if it was a case of couldent be bothered then i would not have posted in the first instance.
driver
- 25 Mar 2008 16:38
- 1620 of 2350
25.03.2008
Sefton Resources Rallies On Back Of Successful Tapia Canyon Drilling Programme
It was another day of financial turmoil in London last Wednesday, with tickers across the board turning red. AIM-quoted Sefton Resources, however, the California heavy oil specialist, was among the winners as its share price gained 15.5 per cent on news of better-than-expected wells results from its Tapia Canyon oilfield. The shares closed at 6.5 pence.
As we have noted before on oilbarrel.com, the company has had its fair share of troubles, battling bush fires, torrential rains, equipment shortages and legal battles that delayed development of the Tapia Canyon heavy oilfield, which lies 40 miles north of LA. The field was discovered back in 1957 but oil price slumps rendered its 18-degree API crude uneconomic and the field suffered from neglect and underinvestment for many decades. Sefton planned to make good for that neglect but, as previously mentioned, saw its ambitions thwarted by a catalogue of misfortune, cash constraints and equipment shortages. By the final months of 2007, however, the AIM company was back in business, drilling two new wells that helped lift output to almost 200 barrels per day, providing a vital boost to cash flows and aiding an overhaul of the production facilities.
That momentum has continued into 2008, with the company successfully completing a four-well programme designed to extend the productive limits of the field to the east and west. These new wells were expected to encounter a thickened section of Yule oil sand reservoir, which is mapped at more than 120 feet thick in places. They have not disappointed, with each of the four step-out wells encountering extensive oil-saturated Yule reservoir to the west (the three Snow wells, of which Snow-3 was a stand out success, finding 142 ft of oil zone) and to the east (the Lackie-A-4 well, which found the smallest oil section at 92 feet). The wells will be placed on production within weeks.
The wells also found gas-bearing sandstones, about 20 feet thick, at a depth of 800 feet. In the Snow area, these results verify and expand earlier volumetric mapping of the gas sands, which were tested back in 2003 when the Snow-1 well flowed over 1.2 million cubic feet per day. The gas sand identified in the Lackie-A-4 well was a surprise as no gas sands had previously been mapped east of the Hartje-2 well, which lies 700 feet to the west. This result could add to the natural gas reserves tally at Tapia Canyon (and the company has been given greater confidence in the gas potential of this area after a nearby operators well, some 800 feet north of Lackie-A-4, also encountered gas earlier this year).
This is all good news for investors but they will be most interested in the pilot steam test that could, if successful, double production by flushing out the heavy crude (a huff and puff test by a previous operator on the Yule-5 well saw production increase from 10 bpd to 30 bpd). The steam generator being used for the two-well pilot can run on propane and natural gas so Sefton could use gas from the Snow-1 well. Results from the pilot will be eagerly awaited by investors as this could be the key to really unlocking the value of this long dormant asset.
Sefton Resources Rallies On Back Of Successful Tapia Canyon Drilling Programme
It was another day of financial turmoil in London last Wednesday, with tickers across the board turning red. AIM-quoted Sefton Resources, however, the California heavy oil specialist, was among the winners as its share price gained 15.5 per cent on news of better-than-expected wells results from its Tapia Canyon oilfield. The shares closed at 6.5 pence.
As we have noted before on oilbarrel.com, the company has had its fair share of troubles, battling bush fires, torrential rains, equipment shortages and legal battles that delayed development of the Tapia Canyon heavy oilfield, which lies 40 miles north of LA. The field was discovered back in 1957 but oil price slumps rendered its 18-degree API crude uneconomic and the field suffered from neglect and underinvestment for many decades. Sefton planned to make good for that neglect but, as previously mentioned, saw its ambitions thwarted by a catalogue of misfortune, cash constraints and equipment shortages. By the final months of 2007, however, the AIM company was back in business, drilling two new wells that helped lift output to almost 200 barrels per day, providing a vital boost to cash flows and aiding an overhaul of the production facilities.
That momentum has continued into 2008, with the company successfully completing a four-well programme designed to extend the productive limits of the field to the east and west. These new wells were expected to encounter a thickened section of Yule oil sand reservoir, which is mapped at more than 120 feet thick in places. They have not disappointed, with each of the four step-out wells encountering extensive oil-saturated Yule reservoir to the west (the three Snow wells, of which Snow-3 was a stand out success, finding 142 ft of oil zone) and to the east (the Lackie-A-4 well, which found the smallest oil section at 92 feet). The wells will be placed on production within weeks.
The wells also found gas-bearing sandstones, about 20 feet thick, at a depth of 800 feet. In the Snow area, these results verify and expand earlier volumetric mapping of the gas sands, which were tested back in 2003 when the Snow-1 well flowed over 1.2 million cubic feet per day. The gas sand identified in the Lackie-A-4 well was a surprise as no gas sands had previously been mapped east of the Hartje-2 well, which lies 700 feet to the west. This result could add to the natural gas reserves tally at Tapia Canyon (and the company has been given greater confidence in the gas potential of this area after a nearby operators well, some 800 feet north of Lackie-A-4, also encountered gas earlier this year).
This is all good news for investors but they will be most interested in the pilot steam test that could, if successful, double production by flushing out the heavy crude (a huff and puff test by a previous operator on the Yule-5 well saw production increase from 10 bpd to 30 bpd). The steam generator being used for the two-well pilot can run on propane and natural gas so Sefton could use gas from the Snow-1 well. Results from the pilot will be eagerly awaited by investors as this could be the key to really unlocking the value of this long dormant asset.
capetown
- 25 Mar 2008 16:46
- 1621 of 2350
DRIVER,thankyou.!
rhino213
- 26 Mar 2008 09:05
- 1622 of 2350
you could have typed that out if you'd really wanted too capetown!
I'M JOKING!
Good report though - just need some PR work done now.
I'M JOKING!
Good report though - just need some PR work done now.
capetown
- 26 Mar 2008 09:18
- 1623 of 2350
rhino,
If we hold this price and steady buys continue,perhaps we can at last put the dissapiontment of recieving long awaited good news rewarded by an SP price that falls away to pre news prices,looks like this may at last be the corner turning.
If we hold this price and steady buys continue,perhaps we can at last put the dissapiontment of recieving long awaited good news rewarded by an SP price that falls away to pre news prices,looks like this may at last be the corner turning.
driver
- 26 Mar 2008 14:46
- 1624 of 2350
Nice little bit of buying today.
driver
- 26 Mar 2008 15:37
- 1625 of 2350
Up 6%+ Nice
capetown
- 26 Mar 2008 16:04
- 1626 of 2350
Driver so is the spread,WIDER,much wider,nothing nice about that,mms are killing it.
capetown
- 26 Mar 2008 16:05
- 1627 of 2350
Nasty 250k sale gone through which has wiped out todays buys
driver
- 26 Mar 2008 16:19
- 1628 of 2350
The sell hasnt done nothing to the sp its still holding.
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