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.

2x200 thousand buy!!!,not seen that for a long long time!!

RAS
Reposted this for you, they are pretty confident on the Dark Side this is going to 20p when it starts flying.


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

capetown,200000 was a rollover.

And a tick up.

At LAST driver,and a tick up again.

capetown
Funny it's gone up today must have been some thing I said or RAS buying in LOL.

DRIVER,i dont care who has awaken sefton!,it got up very early this morning!!!

19% in two days you cant argue with that.

wrt Graylyn's post quoted above, he mentioned that storage capacity has been increased to handle 500 bopd; it should be 800-1000 bopd, an increase of 500 bopd. From the recent oilbarrel article and the latest RNS, it looks like SER are going to get a loan for the development of their oil fields, and a Joint Venture to develop the CBM acreage. The rumour mill has it that the finance facility will be announced 'sooner rather than later', but your guess is as good as mine as to how long that will be. When the finance facility is in place, Hardman Research are going to reissue their forecasts (see June 2006 report on http://www.oilbarrel.com/)

Nice rise today and yesterday :-)

IMHO SER are set to really increase production by drilling another nine wells at Tapia & Eureka over the course of the year, and also with steam generation being implemented mid 2007. If they can increase production to 750 bopd this represents a 5-fold increase, and then there is CBM which is not in the value at all.

With the board structure (new Chairman and CFO) the financial institutions should be happier. Here is the link for the 3 additional well permits which have been granted initial approval:

http://lacounty.info/omd/q1_2006/cms1_054272.pdf

Looks to me like things are coming together nicely for Sefton.

moonshine
And at last for us investors..

Re posted link yours didn't work.

http://lacounty.info/omd/q1_2006/cms1_054272.pdf

Try this even:

http://lacounty.info/omd/q1_2007/cms1_054272.pdf

Guys

I'll be back in the country in about three weeks, at which time I'll update the header. It's probably a little out of date by now.

Not that it really matters, this has always been a mid to long term hold and I still think patience will pay dividends. Certainly at the time I lumped in I was looking at 1 year and more realistically 2 years.

Well done to those who have held during what has been nearly a 50% slump (for me anyway).

pth

www.proactiveinvestors.com have published an overview of the CBM sector which looks very interesting:

14th February 07 (PDF 725KB) Coal Bed Methane Sector Overview: Fox Davies Capital Report.
This report gives an overview of the CBM industry covering project development, technology, economics, markets and investment opportunities. It focuses primarily on the United States and Australia, but also examines emerging markets such as India and China.