Latest release from sefton courtesy of AFX & RNS:

RNS:
Sefton Resources Inc
25 January 2007


Sefton Resource Inc
Trading Update

Sefton Resources Inc. (the "Company") today provides a trading update for the
first half of the financial year to 31 December 2006.

The Board anticipates that trading for the Group will be in line with its
expectations, and that it thus continues to trade profitably, during the second
half of 2006. During this period the Group has utilised its cash flow to
refurbish and renew all its surface equipment at Tapia, provide capital to
evaluate Eureka and continue development opportunities in Kansas.

TEG OIL & GAS USA, INC.

Tapia

Oil production at Tapia remained steady averaging over 4,000 BO/mo with the
exception of November when a key well was down for repair for part of the month.
Early decline rates from initial production of the newer wells have flattened
considerably and the current rates are being sustained. Facilities upgrades and
repairs continue at Tapia. Once the work has been completed later this year, it
will be capable of handling an additional 500 barrels of oil a day.

The Company has now received preliminary approval for the drilling of three
additional wells on its Snow USL lease. Permits for 5 wells (Hartje and Yule
Leases) had previously been received and these can be drilled at any time.
Several rigs are now available once the Company has its financing (See Below)
and permits in place.

In December, the Company commissioned the building of a steam generator that
will initially be used to stimulate production at the Tapia field. Construction
is expected to be completed and the steam unit operational about mid-year.

Eureka

The reconnaissance geochemical mapping of the Eureka Canyon field is completed.
Preliminary data is encouraging and supports the Board's plans to develop
further this field. Current production at Eureka is approximated 435 BO/Month.

TEG MIDCONTINENT, INC.

The Board believes that opportunities in Kansas continue to be extensive.

Anderson/Franklin Counties

A recent project developed to the West of the Company's acreage holding has
encouraged TEG MidContinent to consider a number of options. Sure Engineering
was contracted to consolidate and expand the available data, and one of its
conclusions was that:

"Net coal thickness of the Company's leases is 11 to 22 ft in Anderson County,
and 13 to 19 ft in Franklin County, exceeding the averages of the Bourbon Arch.
Thicknesses for the Riverton and Bevier coals on TEG acreage are near the
maximum for the region. TEG owns over 30,000 leasehold acres."

Additional work is now being carried out by Sure Engineering as a result of
successful drilling in the vicinity by other companies.

Leavenworth County

At Leavenworth County, TEG MidContinent has continued to acquire leases in an
area which the Board believes to be very viable. Its total acreage holding is
now over 7500 acres, acquired at competitive prices. In addition TEG is
currently in contract negotiations with several pipeline operators that provide
gas gathering system infrastructure or market access.

FINANCING

Based on the investment to date and the capital requirement needed to develop
these projects, Sefton Resources, Inc. is continuing to evaluate options with a
number of entities regarding the possibility of using debt and/or joint venture
arrangements with an industry partner to maximise the potential and minimise
risks.

CAZA LITIGATION

As indicated in the interim results reported September 22, 2006, Caza Drilling
Inc., and TEG Oil & Gas U.S.A. Inc., a wholly owned subsidiary of Sefton
Resources, Inc., were parties to two law suits following the 2002 "blowout" in
Tapia Field. The wrongful death lawsuit relating to the blowout was settled
for $4,200,000 with no liability or costs to Sefton Resources, Inc. or its
subsidiaries. In the lawsuit to claim damages against Caza, an initial
ruling on the litigation went against the Company. Following analysis of the
Ruling and available options, the Parties have agreed to settle the case and
have executed a Settlement Agreement that was agreed to and entered into the
Court records on January 3, 2007. The Settlement Agreement calls for Sefton to
pay $250,000 in exchange for resolution of all matters between the Parties.
The Company's balance sheet includes the contingent liability ($178,000) from
the litigation and as such, there will be no major impact to the Company's
financials.

BOARD AND MANAGEMENT CHANGES

The Board has unanimously agreed that the position of Chairman and Chief
Executive should be divided. As a result Jeremy Delmar-Morgan will become
Non-executive Chairman with Jim Ellerton continuing as Chief Executive. In
addition Cynthia Campbell, who joined the Group from Accountants, Gordon Hughes
& Banks LLP, has been appointed Group Financial Controller.

31/12/06 AUDIT

The Company is pleased to announce that Chantrey Vellacott DFK has been engaged
as the Company's auditors and we expect results to be released in April/May of
this year with an annual meeting expected in May/June.

For more information please contact

Jeremy Delmar-Morgan, Chairman
Telephone: 077 8900 4874

Jim Ellerton, CEO
303 759-2700

AFX:
LONDON (AFX) - Sefton Resources Inc said it anticipates first-half trading to be in line with its expectations with said trading continued to be profitable in the second half.

The company also said it will split the position of chairman and chief executive. It named Jeremy Delmar-Morgan as non-executive chairman and announced that Jim Ellerton will continue as CEO.

The oil company said it will pay 250,000 usd relating to two law suits that followed a 2002 'blowout' in Tapia Field. However, the company expects 'no major impact' on its profit because its balance sheet includes a contingent liability of 178,000 usd from the litigation.


Prices are up slightly already!

All looks good to me SER is well under valued, once the finance is in place and the extra five wells are up and running the sp should see 25p and beyond IMO.

The Board anticipates that trading for the Group will be in line with its
expectations, and that it thus continues to trade profitably.

Sefton on Oilbarrel
30.01.2007
Sefton Resources Weighing Up Its Options To Progress US Field Developments

http://www.oilbarrel.com/news/article.html?body=1&key=oilbarrel_en:1170122429&feed=oilbarrel_en

That all looks good to me. They need to be careful not to overstretch themselves though.

There's some buying action going on today. Hopefully we'll see a nice rise in the SP soon. Unless those bloody MM's are playing games again that is!

From the other side courtesy of graylyn

Bull points:.........

1/ Caza case finnaly settled, with only a tiny scratch on finance $72,000 U.S. extra needed to be found on top of the $178,000 already put aside......closure.

2/ Tapia being continuously upgraded to accept up to 500 bopd all should be completed later in the year, this was started last year (If you have no storage where do you put the oil) " Oil production at Tapia remained steady averaging over 4,000 BO/mo with the exception of November when a key well was down for repair for part of the month. Early decline rates from initial production of the newer wells have flattened
considerably and the current rates are being sustained."

3/ The Company has now received preliminary approval for the drilling of three additional wells on its Snow USL lease. Permits for 5 wells (Hartje and Yule Leases) had previously been received and these can be drilled at any time.

4/ Rig availability was a problem......"Several rigs are now available once the Company has its financing and permits in place."

5/ Preparations for steam Injection, to ramp up production..........." In December, the Company commissioned the building of a steam generator that will initially be used to stimulate production at the Tapi field.Construction
is expected to be completed and the steam unit operational about mid-year."

6/ Eureka, survey completed.........." The reconnaissance geochemical mapping of the Eureka Canyon field is completed. Preliminary data is encouraging and supports the Board's plans to develop further this field. Current production at Eureka is approximated 435 BO/Month." Eureka produces a lighter oil than Tapia and commands a higher price per barrel.

7/ CBM leases are growing, massive potential............" The Board believes that opportunities in Kansas continue to be extensive."

Anderson/Franklin Counties

A recent project developed to the West of the Company's acreage holding has encouraged TEG MidContinent to consider a number of options. Sure Engineering was contracted to consolidate and expand the available data, and one of its conclusions was that: "Net coal thickness of the Company's leases is 11 to 22 ft in Anderson County, and 13 to 19 ft in Franklin County, exceeding the averages of the Bourbon Arch.

Whilst at At Leavenworth County, TEG MidContinent has continued to acquire leases in an area which the Board believes to be very viable. Its total acreage holding is now over 7500 acres, acquired at competitive prices. In addition TEG is currently in contract negotiations with several pipeline operators that provide
gas gathering system infrastructure or market access.

8/ Financing.......

"Based on the investment to date and the capital requirement needed to develop these projects, Sefton Resources, Inc. is continuing to evaluate options with a number of entities regarding the possibility of using debt and/or joint venture arrangements with an industry partner to maximise the potential and minimise
risks.


9/ Board changes, this should improve the relationship with pi`s as well as moving the company forward........

"The Board has unanimously agreed that the position of Chairman and Chief Executive should be divided. As a result Jeremy Delmar-Morgan will become Non-executive Chairman with Jim Ellerton continuing as Chief Executive. In addition Cynthia Campbell, who joined the Group from Accountants, Gordon Hughes
& Banks LLP, has been appointed Group Financial Controller."


10/ After last years painfully drawn out realise of the Annual results, a change of auditor...............
"The Company is pleased to announce that Chantrey Vellacott DFK has been engaged as the Company's auditors and we expect results to be released in April/May of this year with an annual meeting expected in May/June."

11/ with around 115 million shares in issue SEFTON IS VALUED at just over 5million @ 4.74p per share they have been profitable for 18 months, they are in a friendly country, analysts have stated that the CMB assets could "Eclipse the oil assets" they own 100% of BOTH oilfields, there is NO debt, they are cash positive they make a profit "WHAT DO WE WANT THE MOON ON A STICK" LOL.

Bear points:.......

1/ Finance needs to be announced (this will be soon I feel)

2/ Investors need to regain confidence in the company (board changes recently made should help)

3/ oil is a risky game

4/ oil price could fall

All just my take on events so far this year, 2007 Seftons recovery year! DYOR

Driver good morning,looks like this is coming to life again,i hope this time its on an upward trend,have been very tempted to sell in the past but glad i held on.

I think before too long we should see some form of financing package/loan facilities being announced. At that point we should see a sharp move higher.

Hope so Greyhound,i was up on these but topped up at a much higher SP,my average now is 6.25,

Your avg is not so far away. We're profitable and I'm of the opinion this is very undervalued. Hold tight!

Nearly 500 thousand buys,and no tick up?,for a small cap thats not good is it?,unless there is a sell order looming,even the early two sells this morning were buys

It's probably just the MM's playing silly buggers again. Hopefully we'll see another move before the market closes today and then a decent move before the end of the week.

Rhino its those mms,just marked it up a FULL .25p and increased the spread to 18%,i wonder if they want pi,s to invest in these,it beggars belief.

capetown rhino213
The B/Board has come to life at last and the sp, my avg is 7.9 yes nice to see a bit of upward movement all we need now is a bit of news to really get it motoring.

Been in this stock since bush fires wrecked everything and the sp plumpted, some think it'll be record year for temperatures again this year!!

The production figures for December were published recently at http://tinyurl.com/2cc7zl. Select TEG from the list of operators and you can see their production at Eureka & Tapia stretching back years.

What is interesting is December's production figures. Sefton have increased production at several of their wells in December. For instance at Hartje 1, production was 109 bbls in December, as opposed to 43 in November, and at Hartje 3, 4, 5, 7, 11 and 12 production more than doubled in December over November production.

This was countered by the fact that Hartje 15 was down. It normally produces 1400 bopm, but only produced 148 bbls for the month. However, it produced those 148 bbls in 1 day!

January's figures will be very interesting, imo. They should be published in early March.

Well	Jan	Feb	March	April	May	June	July	Aug	Sept	Oct	Nov	Dec	2006	2005
Hartje 1	44	40	49	53	43	44	31	39	38	31	43	109	564	633
Hartje 3	19	17	22	23	19	19	14	17	16	13	19	47	245	253
Hartje 4	58	52	65	42	0	0	37	51	49	31	43	142	570	569
Hartje 5	46	41	52	56	45	46	38	40	39	32	44	113	592	565
Hartje 7	212	122	139	255	112	0	167	105	181	146	204	520	2163	2318
Hartje 11	79	71	90	95	76	78	69	69	67	55	76	194	1019	1093
Hartje 12	12	10	13	14	11	10	145	165	161	131	182	464	1318	133
Yule 2	16	22	6	12	15	14	18	20	17	16	17	15	188	381
Yule 5	47	67	25	37	36	17	54	59	51	49	51	46	539	609
Yule 7	515	380	555	577	453	252	385	446	461	393	495	410	5322	2537
Yule 10	420	678	370	414	534	417	542	606	470	493	478	418	5840	3070
Hartje 13	883	1062	721	575	263	137	525	629	562	523	393	604	6877	7339
Hartje 14	712	639	554	124	0	183	337	705	663	237	1218	840	6212	6230
Hartje 15	1827	1368	1688	1674	1854	1730	1573	1279	1270	948	1059	148	16418	8334
Total Wells Listed	4890	4569	4349	3951	3461	2947	3935	4230	3884	3098	4322	4070	47867	34064
Total SER production	5129	4789	4624	4171	3674	3213	4130	4474	4481	3537	4325	4495	51042	39320

Informative post, thanks Moonshine.

It would appear that the table of oil production at each well is not correct, although the total production level is. Apologies for posting wrong info. A couple of posters of advfn queried the number of days Hartje 15 was in production, and posted this response from Gary Dillabaugh:

The DOGGR website figures for Tapia Dec. 2006 are correct for total bbls produced 4070 bbls. of oil.

- The error noted was in how the total production of the field was allocated to the individual wells, particularly Hartje #15. Somehow, (either in the TEG report or by the DOGGR clerk) Harje #15 was input as pumping only one day in the month of December. But please understand that having lower allocated oil production in one well is made up in the allocations for the other wells - the total remains the same.

- There is no "substantial increase" in production reported as alluded to. In fact, the December Tapia numbers were lower by 252 bbls total over the field. The production for Tapia has been relatively flat for Q3 and Q4 2006.The secretary will return to the office tomorrow and she will track down the source of the allocation errors. Please understand that we do not input the data to the DOGGR website ourselves. The only access we have to the DOGGR website is the same as you. We submit a paper report on a monthly basis. DOGGR staff then inputs data in their format. If we see errors on the website(and we will monitor this more regularly), then we can submit a request for change. It may take the DOGGR 2 to 3 months to implement these requests and change their website. There is no way to change data input errors on the DOGGR website in a day or so as suggested.

- If you check other Oil ans Gas Producers data on the website, you will see that many are 3 or so months behind in submitting data to be posted. TEG is prompt in getting the data in as soon as final shipping numbers are available.

-It should be noted that production numbers for individual wells in a field can fluctuate wildly on a daily and monthly basis for a variety of reasons (mechanical/ electrical conditions, changes in subsurface reservoirs, timing of well tests, adjacent well production characteristics, etc., etc) and therefore not a reliable criterion as a basis for any investment decision.

Thank you for your interest in Sefton,

Interesting little o&g stock. Am watching closely for a good opportunity to add to the portfolio.

Appears to have an exciting and substantial programme of growth ahead, but clearly lacks any means to carry it out.

If and when they acquire the funds required (which will be substantial), or enter joint venture agreements to enable them to carry their plans through, then that will completely transform the company and I can see a very substantial upside here.

But I can't get a feel for the timescales involved, before this happens. Can anyone help me out here? ie does anyone expect this to happen next week/month and what are the causes of the delay?

In the meantime I may just buy a few because at this price it appears very good value anyway, but I hate buying on large spreads, and I also hate sitting on my hands for months with nothing happening.

Will continue to watch closely.

RAS, my interpretation is that they are in the process of negotiating facilities in order to exploit the CBM opportunites. They are probably also looking at a joint venture, so I would imagine that we're looking at some sort of announcement by early summer I would hope at the latest.

Just a longshot, by your initials are you ex GSK?

No, not ex GSK..

The CBM opportunities look promising, but it appears they are in a very early stage regarding development, in that they have just bought the leases. This will probably take years to get to the same stage as their oil operations. It is a longer term game, whereas their oil operations are at a much more developed stage and look ready to milk for a big increase in production.

So they really should be looking to get funds to expand their oil operations as a top priority. Do you think they may do a JV on that? I would be quite surprised if they went down that route.