From advfn

fleascool - 1 May'07 - 15:54 - 36261 of 36266


Hi everyone,

Here's a reply from GD regarding the recent increase in gas production.
Just had it through so not had a good chance to diges tit fully yet.




The manager of field operations in California has taken the time to give a lengthy explanation. As a sophisticated investor, I know you realize that we cannot routinely respond in depth to individual technical questions.
Always good to hear from you and thank you for your continued interest in Sefton Resources
With kind regards,
Gary



The gas reported monthly to the DOGGR is entirely solution gas. Solution gas is gas dissolved within the oil that comes out when the oil is produced due to the lowering of confining pressure on the oil in the subsurface reservoir to ambient pressures in the tanks at the surface. The volume of solution gas for Tapia oil is very low, i.e. it has a very low gas-oil ratio (GOR). Where many oil fields commonly have GORs of 500 to 1000 standard cubic feet of gas (scf) per stock tank barrel (STB) of oil, the Tapia GOR is somewhere between 20 and 50 (virtually nothing). Part of this is the age of the field, but most of it is due to the fact that it is heavy oil. To put it in a dollars perspective, the total volume of solution gas Tapia produces on a monthly basis in 2006 (100 to 130 Mcf) is worth about $600.00 to $800.00/ mo. on the open market - not enough to pay for any kind of gas sales infrastructure. There has been an increase in solution gas produced in the first three months of '07, however, even this increased solution gas volume is also not sufficient to run the steam generator for the field. I cannot offer you a complete explaination as of what caused the increase, but our field operator Grant Wade said it came after we cleaned out and changed pumps in the newer Hartje wells earlier this year, most noteably, the Harje #15. We do not meter gas at the wellhead, and have no way to verify this with exact figures, though.

Some of the incremental increase reported during 2006 was an aberration of the building of the Flare/Vapor Recovery System at Tapia at the beginning of the year and adding wells and tanks to this system over the first few months. All reported gas is gas that goes through the meter at the flare. Prior to flaring the gas, we kept the gas in solution as much as possible by holding back-pressure on the wells. The higher back-pressure hinders production by depressing the fluid column within the well and thereby slowing fluid entry to the wellbore. Besides the requirement of the LA Air Quality Mgmt. District (AQMD) to have this new vapor recovery system for our increased production rates, it was also in our best interest to take some of the back-pressure off the wells from a poduction-rate standpoint. We held the gas back-pressure on the wells prior to construction of the flare because without doing so we would have had to vent the gas to the atmosphere, which would put Tapia out of compliandce with AQMD rules.

The second and more voluminous source of gas at Tapia is from the Saugus Formation gas zone. That is the gas that caused the problem at Yule #6 and is the zone that is completed and was tested in the Yule #8 and Snow #1 wells. These wells tested at extrapolated flow rates of approximately 1500 Mcf/D @ 50 psi and 1380 Mcf/D @50 psi, respectively. As you can see, one day's gas production from either of these two wells would approximately equal the total volume of solution gas produced from the oil zone in the entire 2006 calendar year. What we do not know about the gas reservoir is the total volume of gas reserves and will they be sufficient to run the steam generator on the long term. The engineers feel that it is unlikely that there is enough gas to consider sale of the gas into a local pipline, however, we will be better able to determine these parameters when we use this gas for the Pilot Steam Program in the upcoming months.

Thanks for that John. My layman's interpretation of that is the Saugas gas zone is a positive development and whilst they don't know (or won't tell more likely) the volume of the reserve, it's sufficient to use. We must be due a nice string of news updates now.

Thanks john50 lots going on at the moment lets hope it all comes good

keith

More buys than sells (I believe the 100k@7.2 is a buy).

so we've all been sitting here hoping for good news for the last few weeks now. Does anyone know when it's actually coming out? Whats the bettimng it'll be on a Friday so the weekend gets in the way of a nice healthy rise in SP!?!

If we knew that rhino....some of us have been here a while but with results looming I would have thought we'd see something either before then or at 7am on the day.

That was a sudden dip on the bid there as I write.

Is this dead, or just sleeping?

It will be until the useless gits release some positive news!!

Or even negative news?

Would just be nice to be kept up-to-date.

We must be so close to results and I was expecting some news beforehand on this.

Looks like news with the results. Results due this month.

Revenge of the Six

From advfn
The 7th Duke of Cornwall - 13 May'07 - 16:02 - 37002 of 37009

Just had a chat to my oldest and dearest friend, Bob Heinemann of Berry Pet.

He's over the moon that the sale was completed on the West Montalvo on Friday. As he said, you can't spend it until it's in the bank. And now it is!

Now that begs the question, what are the Sefton assets worth! Montalvo is very close to ventura and Sefton have already proved the oil potential. Bob and Jim are old pals, I shall have to arrange a boys night at at 'La Boheme', one of Bobs favourite haunts in Denver.

Now that the deal on Montalvo has been completed, it brings a new value to Seftons assets in that area and I do so hope this will effect the share price before any confirmation of the real value is released next week.

As the deal was completed after close of business Friday, perhaps we will see some reaction tomorrow.

By George, this is looking to be a somewhat sparkling investment.

Tally ho chaps!

Is this new?

"In House Confirmation

Interested in substantiating industry interest in the area and in verifying published data, Sefton initiated its own geologic study. A review of the Anderson and Franklin County project area, as defined by Sefton, was conducted by Nafi Onat of Sure Engineering, LLC. The results of this analysis continued to support the initial hypothesis and the decision to expand the project buy area. TEG has completed a detailed analysis (geologic and economic) and preliminary development plan."

http://www.seftonresources.com/assets/forest_city_basin.asp

"TEG has completed a detailed analysis (geologic and economic) and preliminary development plan."

Can't remember seeing that before.

Press Release Source: Berry Petroleum Company


Berry Petroleum Completes Sale of West Montalvo Assets
Friday May 11, 6:35 pm ET


BAKERSFIELD, Calif.--(BUSINESS WIRE)--Berry Petroleum Company (NYSE: BRY - News) today completed the previously announced sale of its non-core West Montalvo assets, near Ventura, California. The sales price based on the January 1, 2007 effective date is $63 million, subject to customary adjustments.
About Berry Petroleum Company

Berry Petroleum Company is a publicly traded independent oil and gas production and exploitation company with its headquarters in Bakersfield, California.

Safe harbor under the "Private Securities Litigation Reform Act of 1995"

Any statements in this news release that are not historical facts are forward-looking statements and indicate risk and uncertainty, and actual outcomes may differ from those indicated.



Contact:
Berry Petroleum Company, Bakersfield
Investors and Media
Ralph Goehring, 1-661-616-3900
Todd Crabtree, 1-866-472-8279
Internet: www.bry.com

--------------------------------------------------------------------------------
Source: Berry Petroleum Company

Could be heading higher now

and there we go finally!

We must now be very close to some welcome news

I believe the TEG review is the one that Hardman said they were itching to get their hands on.