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

Oil Barrel Conference

RNS Number : 1233V
Sefton Resources Inc
23 May 2008



SEFTON RESOURCES INC.

Oil Barrel Conference

Sefton Resources Inc. is pleased to announce that, following its attendance at the 19th
oilbarrel.com Conference in London yesterday, a
copy of the presentation given will be available on the Company's website at
www.seftonresources.com shortly.

Enquiries:

Jeremy Delmar-Morgan, Chairman Tel: 077 8900 4874
John James (Jim) Ellerton, CEO Tel: 00 1 303 759 2700
David Millham, Investor Relations Tel: 078 5094 9324
Jonathan Wright/Nicola Marrin, Seymour Pierce Ltd. Tel: 020 7107 8000

23.05.2008
Conference Report 2: From Heavy Oil In California To North Sea Gas By Way Of The FSU - Sefton Resources, Nostra Terra Oil & Gas, Volga Gas And Faroe Petroleum Demonstrate Their Ability To Add Production To Underpin Exploration Ambitions
While the first three speakers at oilbarrel.coms 19th conference presented the attractions of a pioneering exploration effort in frontier areas of Africa, the remaining four had a rather different story to sell. Namely, that at current oil prices there are plenty of sub-economic deposits and over-looked opportunities in familiar terrain that are now worth a second look.

Take Sefton Resources, for example. The AIM-quoted company is developing two heavy oilfields in California that had suffered from historic underinvestment during previous oil price slumps. With oil north of US$130 a barrel, these previously uneconomic deposits are looking increasingly attractive and Sefton has made good its goal of moving into profit.

We are a company that decided to go for profit first and exploration later, explained chief executive Jim Ellerton. We started small in an area we felt very comfortable.

Not that life in California has always been comfortable. Progress at its main project, the Tapia Canyon field in the East Venture Basin north of Los Angeles, has been slow due to a blow-out in 2002, floods and bush fires. Now, however, the company is making good progress, with six wells drilled on the 18-degree API oilfield in the last six months (taking the total to 11), installing new facilities and initiating a steam recovery project that should boost production, currently running at 120 barrels a day, a number the company hopes to lift to 800 bpd.

With oil prices north of US$130 a barrel, this is a nice little business, particularly when costs are low and the project has a 47-year life span. The company, which has a market cap of 11 million and 4 million barrels of proved reserves with a net present value of US$114 million, can drill these wells in less than a week for US$600,000, bring them online within 30 days and get pay back within a year. Whats more, the field includes gas which can be used for the steam flood, improving the economics of the enhanced recovery project.

There is another project some 20 miles away, Eureka Canyon, which has been producing a dribble of heavy oil since its discovery in 1893. There is some planned development work here plus exploration drilling to expand the project.

Having now moved into profitable production, the AIM company is turning its attention to exploration. It is targeting coal bed methane in the Forest City Basin of Eastern Kansas, where it holds rights to some 40,000 acres. This year it plans to spend US$1.6 million on five pilot wells, and hopes that each well will yield around 0.08 bcf of gas. The key to success here and as Ellerton pointed out, the Forest City Basin has had its share of its success and grand failure is to avoid multi-zone completions, which can lead to lots of water production.

We have been watching what people have been doing and learning from them, said Ellerton, explaining that Sefton plans to isolate one of the coals, test it for a few months, and then move up the hole to test another coal, and so on. The company also plans to use a multi-phase compression system to move its low pressure gas into the local high pressure pipelines.

:)

Nice chart!

all good stuff! thanks to all :-)) we will all be smiling as this continues to progress well

JE said that we are getting over $100 per barrel minus $15 lifting puts it at about $90 (500 x 90 = $45000 pd) or $16.4m per year.

500 = $16.4m per year
750 = $26.6m per year
1000 = $32.8 per year

(Each new well $600k each and takes a week each and payout in a year. Getting product to market in 30 days).

What should the M/Cap be on revenue of $16.4m with out any CBM built in?


My prediction to end of the financial year Apr 09 will be IMO about 168k B that is with an average of 462bpd (125 + 800 / 2 = 462bpd) 168+B year ending Apr 09

:)

I have a feeling not much will happen till ATM in June.it'd nice for ser to give market something to keep that 10p untill ATM