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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)

Chart.aspx?Provider=EODIntra&Code=SER&Si

2517GEORGE - 30 Mar 2011 15:02 - 2290 of 2350

All my transactions result in sp movement, when I buy sp goes down and when I sell sp goes up, weird.
2517

martinl2 - 30 Mar 2011 15:08 - 2291 of 2350

rhino,

Because they are not 'real' trades on the market, they are the placee companies (City Equity, Hoodless Brennan etc) putting the amount they have sold to their clients (retail investors) through the books.

hodgins - 31 Mar 2011 20:26 - 2292 of 2350

It is tipped today as a triple in the making and the resident bore at ADVFN who has long attempted to do an extremely poor act at replicating himself as another Simon Cawkwell has all the information you could ever not want and is able to fill you in over there?

tabasco - 01 Apr 2011 07:14 - 2293 of 2350

A big SP rise today...


31st March 2011



Analyst: Thomas Jones
Email: thomas.jones@gecr.co.uk
Tel: 0207 562 5422

Sefton Resources* - Californian Oil Producer with CBM and Pipeline Assets. Speculative Buy with 5p Target Price
Key Data

EPIC

SER

Share Price

1.75p

Spread

1.5p - 2p

Total no of Shares

280,031,959

Market Cap

GBP4.46 million

12 Month Range

0.5p - 2.375p

Net Debt

$6.7 million (estimated)

Market

AIM

Website

www.seftonresources.com

Sector

Oil & Gas

Contact


Jim Ellerton, Acting Chairman and CEO

Tel: +1 (303) 759 2700

Small in size but big on promise, Sefton Resources owns outright oil production assets in California which have proven reserves with a Present Value of GBP50 million, as well as gas and infrastructure assets in Kansas. The company has been listed on AIM for more than a decade and now is not only cash generative but profitable and looking to increase its profile. This year the board have three key objectives: to increase oil production in California, activate the Kansas gas assets and increase reserves. All these moves will allow further value to be added.

Production is set to increase from Sefton's primary producing asset in California at Tapia Canyon which currently produces 140 barrels of oil per day (bopd) thanks to the implementation of a cyclic steam pilot implemented in 2009 as an enhanced recovery technology. The company has now transitioned to the next phase of testing a continuous steam flood pilot, as a way of further increasing recoveries and production. This pilot project currently running at Tapia is providing vital data for the study by consultant Dr Farouq Ali and implementing these findings is expected to lead to increased production.

The Kansas gas assets are planned to be activated this year. These represent Sefton's more recent acquisitions where conventional gas, Coal Bed Methane (CBM) and gas infrastructure assets have been aggregated as a contrarian play in a low price natural gas environment. In acquiring such assets Sefton has gained a strangle hold over a substantial area in NE Kansas as these pipelines provide the root to market for gas reserve and wells that are currently shut in. Sefton plan to unite the LAGGS and Vanguard pipelines eventually to serve both its own production and that of others.

Reserves are expected to rise in 2011. At Tapia Canyon, this should be achieved through Dr Farouq Ali's study and the continuous steam pilot which are expected to demonstrate that oil recovery can be improved by heating the oilfield with steam. With a higher recovery, proven reserves will increase. Also activating the Kansas pipeline should allow some of the reserves in the possible and probable categories to become proven reserves.

At the year-end, the Present Value (PV10) of Sefton's proved oil reserves at the year-end was $80.6 million (GBP50 million). In February 2011, the board announced this PV10 along with the updated reserves estimate for Tapia and Eureka oil fields which revealed, total proven reserves at year-end 2010 stood at 3.8 mmbbl, comprised of 1.6 mmbbl proven developed reserves and 2.2 mmbbl proven undeveloped reserves. Whereas in Kansas estimated possible gas reserves stood at 2.3 Bcf (billion cubic feet of gas).

Sefton recognises the need to improve its profile and has thus embarked on an aggressive broker and Investor Relations programme since the beginning of the year. These initiatives are being undertaken in the belief that Sefton's assets are materially undervalued and that operational progress together with investor education will drive the share price to more appropriate levels. Recent placings have ensured that the company has the finance in place to fund its Tapia and Kansas activities through to the next stage of development.

Based on the company's California assets alone, GE&CR initiates coverage of Sefton Resources with a 5p target price and speculative buy recommendation.

full report....http://uk-analyst.com/shop/page-advice/action-advertorial.show/id-130011267

ellio - 08 Apr 2011 17:45 - 2294 of 2350

Lots and Lots of buys in SER, looking ready to pop? I thought that was good news the other day, still hoping for 5p+

tabasco - 11 Apr 2011 09:50 - 2295 of 2350

Sefton Expects Improved Flow Rates at Tapia, Charges Ahead in Ks.
Sefton Resources Inc.
|




Sefton updated on trading for its oil production assets in California and gas infrastructure assets in Kansas.
California

Sefton's 100% owned subsidiary TEG Oil & Gas USA, Inc ("TEG USA") is the operator of its operations in California at Tapia and Eureka Canyon.

As was announced on March 1, 2011, TEG USA commenced its pilot steam flood operations at the Hartje #10 well in March and is currently injecting steam at about 35% capacity which will be increased to approximately 75% to 80% capacity (normal operating levels) over the coming weeks. At that point, approximately 700 to 780 bbl of steam will be injected per day into the center of the oilfield.

TEG USA averaged approximately 123 bbl per day during March, which is regarded as the baseline primary oil production level and it is anticipated with the injection of steam into the Hartje #10 well this will rise as it did for the pilot cyclic steam program last year.

Local California oil is currently posting at a 4% premium to NYMEX futures, rather than the more typical 7%-9% deficit. This spread has averaged a positive $4.20, for a posting of just over $107/bbl average for the month of March.

The preparatory work for the steam flood sensitivity geologic modeling will be completed in early April ready for Dr. Farouk Ali to commence his steam flood modeling work, which will last several weeks and is expected to be completed in May 2011.
Kansas

Sefton's Assets in Kansas are in Leavenworth County, including the Vanguard pipeline and the recently acquired LAGGS pipeline, and Anderson County, being the Waverly facility. Additional assets along the LAGGS pipeline are currently undergoing due diligence and are expected to close by 30 April 2011.
Leavenworth County

Repairs to all of the 8" and the bulk of the 6" and 4" segments of the Vanguard Pipeline system have been completed and tested. Strategically, the 8" portion of the system is the most critical segment of the system and this segment will see the first volumes in 2011 with initial revenue from the Company's 100% owned subsidiary, TEG Midcontinent Inc and a third party expected to accelerate during the coming year

Testing and activation of the LAGGS pipeline have begun. Three areas for repair have been identified. The repairs will be made in the order of their operational importance.

It is anticipated that later in 2011 the two systems, Vanguard and LAGGS, will be connected together and, as a result, it will be possible to move gas to market at two separate points and to two separate markets. This will give Sefton the possibility of moving gas to the higher return market from month to month.
Anderson County

The Waverly facility consists of over 10 miles of pipeline, fifteen well bores, two salt water disposal wells and a dehydration facility capable of processing 10 million cubic feet of gas per day. The Waverly facility has an inactive tap with Post Rock (an interstate pipeline company) at the dehydration facility. Reactivation of the tap is expected to take place in early 2012.

Jim Ellerton, Acting Chairman and CEO of Sefton Resources said, "The Company is progressing well - we expect improved flow rates at Tapia and the prospect of still further increases once we can implement the recommendations of Dr. Farouk Ali's report. At the same time, we have continued to make progress in Kansas and this will continue further in the coming months so that we can activate the assets as soon as is possible. We are cash generative, profitable and actively increasing our investor profile and believe this will position us well for the future."

http://www.rigzone.com/news/article.asp?a_id=105874

2517GEORGE - 12 May 2011 10:59 - 2296 of 2350

Starting to get a nose bleed. At last SER making significant headway.
2517

Balerboy - 12 May 2011 13:14 - 2297 of 2350

wonder what martinl2 makes of that?.,.

2517GEORGE - 12 May 2011 15:41 - 2298 of 2350

Up 200% so far today.
2517

littlegravitas - 12 May 2011 16:13 - 2299 of 2350

remember when these were 10p?

2517GEORGE - 12 May 2011 16:23 - 2300 of 2350

I bought not long after they fell from 10p, I paid 8p for my first batch at the end of July 2006, added several times since and now it's pay back time.
Looks like a 'gibby' keeerrrrccchhhhiiinnngggg moment.
2517

driver - 12 May 2011 16:38 - 2301 of 2350

2517GEORGE

Well done George I got out at 1.85 months ago and made back my loss since, you should be looking to take some profit possibly tomorrow on an early spike it could dive when the punters start getting out.

2517GEORGE - 12 May 2011 16:47 - 2302 of 2350

Cheers driver, I was tempted to lock in some profit, I may take your advice tomorrow, thanks.
2517

champagne ronny - 13 May 2011 07:35 - 2303 of 2350

Press seem to think this worth a whole lot more, might have a daytrade if it goes off like a train.

MARKET REPORT:

By TAMSIN BROWN

Last updated at 10:04 PM on 12th May 2011

AIM-listed Sefton Resources soared 4.25p or 227pc to 6.125p after an independent report put the value of its oil and gas resources in Kansas at an estimated 60m.

It also has oil reserves in California valued at about 49m.

At yesterdays close the company was only worth 17m.

Boss Jim Ellerton said: We are busy working our investor relations programme to get this message out.

Annual results are due on May 25.

required field - 13 May 2011 08:09 - 2304 of 2350

Well done,..those who got in...take some profits because this is a spiky one....

gibby - 13 May 2011 15:26 - 2305 of 2350

rf ditto that to those who made a swift profit here and all those who enjoyed the kerrrrrrrrrrrchinnnnnnnggggggggggggggggggggg!!! i'm out at the moment but looking to get back at the right sp!! george it was a real kerrrrrrrrrrchinnnnnnngggggggggggggaroooooooooooooooooooooo!! hope you did lock in and bank some profits here

at the moment current sp is about half 60m valuation and likely more to come

who would wanna be outta ser this weekend!!?? lol

driver - 13 May 2011 18:12 - 2306 of 2350

gibby

Me

kimoldfield - 13 May 2011 18:29 - 2307 of 2350

And me!

Balerboy - 13 May 2011 19:24 - 2308 of 2350

and me......had swift profit within half hour this morning......kerching.,.

kimoldfield - 13 May 2011 19:31 - 2309 of 2350

Took mine a tad too soon. A nice profit is a nice profit though!!
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