I think these should steadilly tick north on the back on that update. production is up and everything seems to be going well.

Hopefully I'll be wrong and they'll sky-rocket to 1 each! ha!

Bought afew more @ 5.9 steady as she goes!!:)

I also bought more this morning. Steaming is going very well indeed.

Back to square one again, looks like we will have to wait a while longer

OB 25.07.2008

Steam Test Starts To Have An Impact For Heavy Oil Specialist Sefton Resources

Heavy oil may not be at the sexy end of the oil business but, given sky high oil prices and a world hungry for more of the black stuff,

These wells can be drilled in less than a week for US$600,000, brought online within 30 days and pay back within a year. If the company can keep the momentum up, production of 800 bpd could be on the cards with much greater potential over the longer term:

http://www.oilbarrel.com/email_index.html?page=/news/article.html?body=1&key=oilbarrel_en:1216951242&feed=oilbarrel_en

These wells can be drilled in less than a week for US$600,000, brought online within 30 days and pay back within a year. If the company can keep the momentum up, production of 800 bpd could be on the cards with much greater potential over the longer term: according to analysts at Hardman & Co, peak production at Tapia should ramp up to 150,000 bpd by 2009 through conventional drilling with significant upside if the steam-enhanced recovery programme proves viable.

Can sefton really get up to 150,000 bopd in 2009? i did a rough calculation and the revenue ran into 2.7 billion, correct me if im wrong, is this correct, because i thought tapia was only going to produce 800 bopd, if these targets are viable that is amazing, and the drilling and production is so quick as well, other oil companies take a few years to bring even one well into production after drilling.

I just want to confirm because i am on another forum with sefton holders interactive investor.com and these guys are a bit down and frustrated with the latest RNS update and i dont think they are aware that the long term potential of sefton is a lot greater than the 20p share price target most of them have.

I think 150,000 bopd is a misprint. Should be 150,000 bbl per year. Actually I have just answered you on 3i.

barclay
No it's a miss print 800bpd would be nice and possible $32m a year would give an sp approaching 40p+ plus CBM on top of that.

+ Eureka on top of that...

driver,

Interested why you put the figure of 40p at 800bopd / $32m a year?

By my calculations, eps would be over 10p per share with 800bopd, justifying a higher shareprice than 40p, more like double that?

I do think 800bopd, if achieveable is some time off though, although waiting another 1-2 years for a 15-bagger would be OK I suppose:)

martinl2
Yes I agree it was a quick calc out of my head I have always said this could get to 80p+ with Eureka and CBM

Bargain basement comes to mind.

start spreading the news then guys. This will only head north if enough people are interested in buying the shares.

and then the evil MM's have to let it go that way too!

When we've finished buying.

Just spotted this on the BBC News website....

Obama urges opening oil reserves

If he does make it to the White House what do you think this policy would do to the Oil Market and more importantly for us Sefton?

lower oil prices! tax cuts for producers???

Surely that would be more likely to raise oil prices.

kuzemko,

The article refers to using the strategic oil reserves (stockpile of oil), in order to help lower fuel prices in the short-term.

A good positive update will see this back to 10p ser are making plenty the sp is at a bargain basement price.

very nice 2 trades today at 6.50p.???

Sefton Resources, Inc.
('Sefton' or the Group)
Interim Results for the six months to 30 June 2008


Highlights
Revenue doubled to $2.6m from $1.3m
Profits increased five fold to $904k from $179k
Banking facility increased to $15m
New Nominated Advisor and Broker appointed

Chairman, Jeremy Delmar-Morgan pointed out that 'the Group's financial position continues to improve, bringing Sefton closer to its stated goal of 'building a strong platform of assets, generating sufficient cash flow to operate and grow the business'. While we will continue to grow our California assets, we will now embark of the development of our Kansas assets, utilizing the improved banking facility and growing cash flow. The appointment of a new nominated Nomad and Broker will, we believe, assist us in enhancing the Group's profile to the benefit of all shareholders.


Chairman's statement

In my last annual statement I was able to forecast that Sefton was now ready to take the next step in its development programme. I am please to report that the results of the past hard work are starting to show in our financial results.

During the first half of 2008 oil and gas revenue more than doubled to $2,594,873 from $1,276,127 for the comparative period in 2007 and $2,977,691 for the whole of 2007. The increased activity meant that costs and expenses increased to $1,690,510 from $1,096,993, but profit improved five fold to $904,363 from $179,134 at this time last year and $204,652 during all of 2007.

The encouraging increase in oil and gas revenue and net income was a result of spending $2,889,028 on our oil and gas assets, compared to $488,380 for the same period in 2007 - a function primarily of utilizing some cash flow and some of the available bank facility.

Total assets increased by over $5m to $13,488,405 from the comparative period in 2007, and while liabilities increased by almost $4m, to $5,300,258 - the majority of which is attributable to the use of $3.3m draw from the bank facility - the total shareholder equity increased from $6,831,299 to $8,128,147.

Our steaming and drilling programmes at Tapia are on schedule. The results have been extremely encouraging, but the differences in reservoir and drainage conditions can result in variances between the wells response. All show an improvement and we are extremely excited about applying the cyclic-steam stimulation to both old and new wells field-wide.

We will be working on the two gas wells Yule#8 and Snow#1 in the coming weeks. If the mechanical issues in either of these wells can be solved, such that gas can be supplied from them to the steam generator at the appropriate rate and pressure, the systematic steaming of other wells in the field will begin accordingly.

We have also budgeted funds for the drilling of three new wells on the Yule Lease during the fourth quarter of 2008. One of the new wells may be used to provide a new gas supply well. The other two will be oil producers. In addition we have initiated permitting of five new wells on the other Tapia leases, which should be completed in the coming months for drilling to start during 2009.

At our Eureka Canyon field we successfully carried out the clean-out and pump replacement operation during June. Monthly production has improved from an average of 230 BOPM to 410 BOPM during July. Work with W.L Gore, Inc is continuing on the geochemical survey and field work for the follow-up which is scheduled for this month - September. We are now in the process of refining our sampling grid identified in the initial survey.

An updated engineering report by Reed W. Ferrill and Associates was prepared for the first half period, which reflected an improvement in the Group's proved developed reserves to the year end 31 December 2007 resulting from the expenditures on the Group's assets. This does not reflect the encouraging results that we have achieved from the current cyclic steaming pilot programme, which will be reflected in the 2008 report. The present day value is approximately $165,000,000 (constant costs/prices, discounted 10%).

I am pleased to be able to report that as a result of improved reserves, production, revenue and net income, the line of credit facility with the Bank of the West has been increased to $15m.on extremely competitive terms.

The revised line of credit will also enable Sefton to buy back the Group's stock from surplus funds if we consider this appropriate. This revised agreement adds flexibility to the Group's financing options in developing and growing.

Finally, the Board has decided to engage the firms of Blomfield Corporate Finance Ltd as Nomad and Religare Hichens, Harrison plc as Broker, both effective from October 1, 2008. Management believes that the profile in the marketplace of Sefton will be enhanced by this move. With the improvement in financials, banking facilities and the new Nomad/Broker we have greater flexibility in our growth path.

Jeremy Delmar-Morgan

Chairman
September 3, 2008

Enquiries:
Jim Ellerton, CEO 00 1 303 759 2700
Jeremy Delmar-Morgan, Chairman 077 8900 4874
David Millham, Investor Relations 07850 949324
Jonathan Wright/Nicola Marrin, Seymour Pierce 020 7107 8000