Sharesmagazine
 Home   Log In   Register   Our Services   My Account   Contact   Help 
 Stockwatch   Level 2   Portfolio   Charts   Share Price   Awards   Market Scan   Videos   Broker Notes   Director Deals   Traders' Room 
 Funds   Trades   Terminal   Alerts   Heatmaps   News   Indices   Forward Diary   Forex Prices   Shares Magazine   Investors' Room 
 CFDs   Shares   SIPPs   ISAs   Forex   ETFs   Comparison Tables   Spread Betting 
You are NOT currently logged in
Register now or login to post to this thread.

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

kuzemko - 16 Oct 2008 13:28 - 2092 of 2350

barclay, nice one. i'm holding my cash for the same reason.if we get there. so far i think that it the panic that drives the markets down not the fundamentals

martinl2 - 16 Oct 2008 13:36 - 2093 of 2350

"Be greedy when others are fearful"

Don't let fear stop you purchasing Sefton at this ALL-TIME LOW!

What rational reason is there for it to go any lower, especially 1.5-2p - less than half the all-time low?

Follow the CEO, imo.

kuzemko - 17 Oct 2008 12:41 - 2094 of 2350

bernstein predicts oil at mid$70 next year.executives,analysts and bankers agree that the commodities boom is not dead yet.in addition the current period of low prices and credit crunch will delay project in china and the rest.meaning that the supply in future will be lower than forecast!!!

barclay - 17 Oct 2008 13:25 - 2095 of 2350


I dont think it will go to 1-2p either, i didnt know about the share consolidation, so i was thinking the all time low was sub 1p, but people sell off when scared, every day the media mentions the word credit crunch more times than john Mcain mentions joe the plumber, so if it does go to that we win(buymore) if it doesnt(we win) sefton share price is stable and we are on to the bear rally(eventually).

kuzemko - 19 Oct 2008 15:37 - 2096 of 2350

just read in IC-us gov predicts oil prices for 2008-2009 at $112.also they are 23mln bo under its reserves, and opec productions cuts, how much? we'll find out next week!!!

kuzemko - 29 Oct 2008 13:32 - 2097 of 2350

World will struggle to meet oil demand
By Carola Hoyos and Javier Blas in London

Published: October 28 2008 23:32 | Last updated: October 28 2008 23:32

Output from the worlds oilfields is declining faster than previously thought, the first authoritative public study of the biggest fields shows.

Without extra investment to raise production, the natural annual rate of output decline is 9.1 per cent, the International Energy Agency says in its annual report, the World Energy Outlook, a draft of which has been obtained by the Financial Times.

The findings suggest the world will struggle to produce enough oil to make up for steep declines in existing fields, such as those in the North Sea, Russia and Alaska, and meet long-term demand. The effort will become even more acute as prices fall and investment decisions are delayed.

future gas prices look to be moving up.latest deals around the world in CBM and gas pipe can only suggest growing demand

halifax - 30 Oct 2008 16:35 - 2098 of 2350

Bought a few today as usual shown as a sale by mm.

driver - 30 Oct 2008 16:41 - 2099 of 2350

halifax
Good price this must be the bottom I had a few last week..

halifax - 30 Oct 2008 16:47 - 2100 of 2350

driver we get the feeling mm's are not holding much in the way of small cap aim shares and have seen some big jumps in a few bombed out shares like CDN today, so just maybe now is the time to be putting a toe back in the water.

cynic - 30 Oct 2008 16:53 - 2101 of 2350

now is still the time to look for stocks to short, not buy

halifax - 30 Oct 2008 16:54 - 2102 of 2350

cynic you do it your way and investors may choose otherwise.

cynic - 30 Oct 2008 16:59 - 2103 of 2350

tell me, when do you think the markets will turn optimistic and/or do you think it is any day/week now?

halifax - 30 Oct 2008 17:03 - 2104 of 2350

That very much depends on your time horizon, all we can be sure of is that things will not be th same in say five years time. A word of advice don't get caught short with other market makers.

cynic - 30 Oct 2008 17:08 - 2105 of 2350

the point i make is that there is absolutely no need to throw money into the market, and certainly not at junior junior E+Ps .... SER may well prove to be a "goody" over time, but as i said, no hurry to throw in new money

halifax - 30 Oct 2008 17:15 - 2106 of 2350

except if mm's are not holding any shares then they will have to move their prices upwards very quicklywhich is exactly what has happened with a few small aim shares today....CDN, MSS etc

martinl2 - 30 Oct 2008 17:21 - 2107 of 2350

cynic,

Please do your research into this company. It should not be tarred with a general 'junior E+P' brush. That implies lack of funding and cashflow and a long wait to profitability. Issues which do not apply to this company. In fact it is fairly unusual among such small capped companies in its cost stucture, funding, and growth prospects. Generic brush strokes may suit your general trading strategy but for specific companies they are useless. So if you want to discuss it with holders who have done thorough research and have a good understanding of the specific company, you may be wise to do the same.

- It has access to a $15m credit facility on good terms.
- It has very low production costs and limited fixed costs.
- It has at least 3 parallel routes to achieve significant growth in both production and reserves. with various cost and risk profiles. E.g., cyclic steaming of Tapia, infill drilling at Tapia, and pilot drilling in Kansas for CBM. These are all relatively cheap ways of increasing value and the first route especially is very low risk and low cost, and potentially very high reward.
- And what is the market cap now, 3.5m?

cynic - 30 Oct 2008 17:36 - 2108 of 2350

how on earth can you how can you kid yourself that this is not a junior junior when its cap is only 3.5m? .....

and sorry to disagree (well perhaps not sorry!), but you can totally blind yourself with research and science ..... in case you had not noticed, we are in a vicious bear cycle and even top quality oilies are being hammered and will continue to be so ..... indeed, this will apply to nearly all stocks regardless of sector.

more fruitful "research" could well be to find out which stocks in which sectors - e.g. advertising and construction and mining and oils - remain very vulnerable, despite the fact that they may currently LOOK cheap

martinl2 - 30 Oct 2008 17:45 - 2109 of 2350

So in your logic, it is the market cap 'group', not the characteristics of the actual company that determines your view of a stock?
So if for some bizarre reason, the shareprice of a 'junior junior' was to go up to 100m next week, would it suddently change from a 'junior junior' to something else? Or if a 100m stock was to similarly crash to 3.5m would that mean the company was now all of a sudden a 'junior junior'?

cynic - 30 Oct 2008 17:50 - 2110 of 2350

if a company's cap went from 3.5m to 100m in a big rush, it would certainly indicate something good was happening, though even at 100m it would still be pretty small.

and in the reverse scenario, you would have done your bollocks big time!

as i said before, the markets are heading south with a lot of nasties still to appear and lots of hedge funds being forced to liquidate positions ..... now is NOT the time to be chucking money at the market, let alone at tiddlers

halifax - 30 Oct 2008 18:15 - 2111 of 2350

cynic what investors do with their funds is entirely up to each individual investor if you wish to short shares that is your choice but be aware nothing goes down for ever otherwise you end up with nothing. We have reached a point where value is emerging investing is still a minefield but that has always been the case, if you can't stand the heat stay out of the kitchen.Shorters are beginning to be caught out and the risk is increasing as the market reaches its bottom.
Register now or login to post to this thread.