Nice 150k buy on the bell.

Looking good for a blue Friday tomorrow.

If SER have some tangible sp sensitive information on current operations then AIM rules require them to issue an RNS to shareholders. Personally I would rather wait for the company's news release than react to hearsay.

Hearsay? You think driver might be making this stuff up? I've read similar reports on Sefton's presentation now from at least 3 different people, and they are all consistent.

But not yet official.

Well it did come from the mouth of the CEO in front of 100's of people - so that makes it pretty official in my book.

If the CEO said anything that was likely to affect the sp without the company releasing an RNS then he and the company are in breach of the AIM rules.

No, it was a presentation. He presented the facts and figures about the company, and obviously gave forward-looking statements and predictions about where the company is going. Just like the other 6 companies there.

As I said an official RNS is rquired if price sensitive information is being divulged so that all shareholders have time to react.

halifax
I understand where you are coming from and I do not want you to invest on what I have said no problem. The one line that is important that was said is this. When asked about production to date he said around about 200bld and after when all 11 wells are up and running with steaming, he said around the 800. The sentence was said so quick you could have missed it and many did in the room but it was said. If I personally had more funds I would to up DYOR.

driver if that is the case, and I have no reason to doubt you, then we should expect official confirmation at the AGM on 13th June or earlier. A quadrupling of production has to be a significant event for shareholders.

halifax
Yes i agree

Feed back from some one else who attended from Fool.com

Sefton Resources
Jim Ellerton (JE)

Profits, first explo later.

Management: Emphasis on technical people. Kansas and California.

Partially developed reserves with long life. Started in $10-$20 oil environment. Areas where can develop to market rapidly. Lot of infrastructure nearby. We control and operate assets. 100% of everything. ROCE 30% or better. Spot price now even better ROCE. Where majors have walked away.

Tapia, California

IPO December. 2002 Gas at 500 feet blowout occurred. Lawsuits settled now.
11 successes in a row. Increased asset base of co. Monetizing main asset of Tapia. Bank facility 2007 BNP Paribas 1.5% above prime.
116m shares. 10p - 11m Market Cap. NPV Proved reserves 10% 114m. $15 cost per bbl. Getting $115/bbl. Turned the corner and now profitable and moving forward.

East Ventura Basin, California

Heavy oil. Tough terrain. Acquired Tapia and Eureka. Steam flood next door.
Tapia Oil field. Good oil column and gas up the whole. $600k each and take a week each and payout in a year. Getting prod to market in 30 days. Unconsolidated sands constantly clogs. Started to put gravel in which filters. Workover every 1-2 years rather than 3 months. Drill most from centralised pads with directional drilling. 50-60 year old equipment. Built our own steam generator.
Initiated first steam pilot programme. Using our own gas to steam the oil. 94% of the revenue in this field. Self sustaining for cash 47 year life and payout is a year

Eureka Oil Field

From turn of the century. Marginal and extreme terrain and gravel packed techniques. 1600 acre lease. Seismic bad round here. Geochemical survey. Significant features and oil seeps. Close proximity to lots of other fields. Lots of potential Putting a well down this year as the cash flow improves from the other wells. At $85. Proved reserves 4m - $122m. Payout in 0.73 years. Lifting costs $14.55/bbl Capex $15m from cashflow.

Kansas

Forest City Basin

Coal Bed Methane mixed success other areas. Geophysical anomalies channel oil sands. Not yet tested. Kansas is easier for regulations and good offset for California. Coal study came out and 40,000 acres of coal. 300-100 wells. 1000 feet deep in about a year. Well design tricky and are trying to learn from other peoples success. Test each seam at a time. Allows determine how many coals can complete at once so dont waste money. Most of pipelines to Chicago and SanFrancisco. Pressure problems and water problems and others walked away. Using compression techniques and water removal have had some success starting a pilot programme this year. 50 well programme $6.5m. $11.50/mcf. 87% of revenue. Payout 1.4 years 20 year life of reserves. 250 wells over next few years.

Leavenworth

Lot of inactive pipelines. Restarting abandoned wells. Conventional and CBM stuff.

Summary

Strong cashflow from multiple assets.

Questions:
Q: Are 2P reserves enhanced recovery or conventional?
JE: Both. There was an old well that was steamed and multiple improvement in the recovery of oil and other fields are similar. Some use purchased gas if we can use our own gas improves economics dramatically.
Q: API?

JE: 18degree so ready market in California.
Q: Production now?
JE: 120 bbl/ day. 6 new wells takes 30 days to stabilise. Steamed one well. Predict 800bbl/Day soon.

KoD

driver,

How come that attendee thought JE said 120bopd was current production, and not 200bopd as you reported? Was it a different question?

rel
That's what I thought he said 120 looks a bit low for him to have said that anyway.

???

i would say and looking forward to it!!

rel
I wouldn't put too much on it 120 or 200 I think JE was referring to past production not present.

You're right - the 800bopd figure is much more interesting! ;)

Report correction.

Apologies for the phenomenal word I thought he was referring to our steaming not the steaming impact on the nearby placerita field as (union other side) pointed out. I stand corrected no intentional miss leading was intended may have been over enthusiasm on my part.

As he was referring to the nearby placerita field there is no reason SER do not get the same results as JE was suggesting.

I'm not a holder of SER. I thought this article would be of interest to those who do.

http://edition.cnn.com/2008/WORLD/europe/05/22/oil.supplies.ap/index.html