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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)
Laila25 - 10 Aug 2006 17:54 - 62 of 2350
Volume dying.....going nowhere for a few wks...in the absence of news will drift down as all the hot air from the takeover ramping arguments evaporate.
ampuriabrava - 10 Aug 2006 18:10 - 63 of 2350
I have watched with interest ref laila25 hot air like SER rises obviously your
basic schooling was somewhat lacking in the sience dept if you even attended.
L does not hold any but has decided to buy 10p's worth if hot air ever goes down.
basic schooling was somewhat lacking in the sience dept if you even attended.
L does not hold any but has decided to buy 10p's worth if hot air ever goes down.
ptholden
- 10 Aug 2006 19:13
- 64 of 2350
So no-one wants to hazard a guess why the max limit to buy on line today has been a measly 1500 shares?
Well if I was a ramping git like some (nudge nudge wink wink say no more) I would suggest that the MMs are discouraging buying, but encouraging selling. Still with me? Now why would they want to do that. Perhaps very short of stock? Perhaps they have a large order to fill at a pre-determined price? Now if they increase the bid to encourage sellers, they are not going to fill the order at the required price, the only alternative is to walk the price down. Buys and sells appear pretty much evenly matched since consolidation. so there is no real reason for the SP drop over the last few days. Indeed the only definate sell today was for 4000 shares. Bear in mind that the current NMS is so tiny (3000) that the MMs have a huge advantage in disguising what they are up to, even more so than normal. Some may argue that this on line restriction is actually a double bluff, giving the impression that they are short of stock when in reality, they are not. That argument certainly doesn't stand scrutiny, if they have an overhang, it isn't going to be shifted by limiting the amount PIs can buy on line.
It's just a thought and may well be miles off the mark, personally I'm not really bothered and am very happy to wait for the Results in September and if the price does drift (and it may well do) it presents an ideal buying opportunity for astute investors to buy a slice of a producing oil company.
pth
Well if I was a ramping git like some (nudge nudge wink wink say no more) I would suggest that the MMs are discouraging buying, but encouraging selling. Still with me? Now why would they want to do that. Perhaps very short of stock? Perhaps they have a large order to fill at a pre-determined price? Now if they increase the bid to encourage sellers, they are not going to fill the order at the required price, the only alternative is to walk the price down. Buys and sells appear pretty much evenly matched since consolidation. so there is no real reason for the SP drop over the last few days. Indeed the only definate sell today was for 4000 shares. Bear in mind that the current NMS is so tiny (3000) that the MMs have a huge advantage in disguising what they are up to, even more so than normal. Some may argue that this on line restriction is actually a double bluff, giving the impression that they are short of stock when in reality, they are not. That argument certainly doesn't stand scrutiny, if they have an overhang, it isn't going to be shifted by limiting the amount PIs can buy on line.
It's just a thought and may well be miles off the mark, personally I'm not really bothered and am very happy to wait for the Results in September and if the price does drift (and it may well do) it presents an ideal buying opportunity for astute investors to buy a slice of a producing oil company.
pth
Laila25 - 10 Aug 2006 19:16 - 65 of 2350
Easy now...no need to get angry.
Laila25 - 10 Aug 2006 19:16 - 66 of 2350
Bear in mind that the current NMS is so tiny (3000) that the MMs have a huge advantage in disguising what they are up to, even more so than normal.
Shame u couldn't put the above statement to DMR...one rule for u and for others. 5 pence soon.
Shame u couldn't put the above statement to DMR...one rule for u and for others. 5 pence soon.
ptholden
- 10 Aug 2006 19:21
- 67 of 2350
Did someone tread on something?
Laila25 - 10 Aug 2006 19:46 - 68 of 2350
All hot air here......most amusing were those takeover rumours.
markusantonius
- 10 Aug 2006 22:56
- 69 of 2350
Laila, with all due respect, shouldn't you be posting about DMR on your DMR thread? And, back to my Q.: HOW MANY SHARES IN SER DO YOU ACTUALLY HOLD, IF ANY? You are one of the most frequent posters on this thread so fair question, I think? Did you buy at the wrong time or something? Or is there another reason for your negativity perhaps? I am very interested in reading both sides of the argument as I consider a small punt on SER. So, if you have something to back up your "after consolidation..." posts then I am all ears!
Laila25 - 11 Aug 2006 05:08 - 70 of 2350
Some worried people here.
stewart3250
- 11 Aug 2006 08:13
- 71 of 2350
Who is this clown Laila25, can the muppet not be removed and get some sense back to the thread.
john50 - 11 Aug 2006 08:31 - 72 of 2350
I lads he or she is playing you at your on game and by god you dont like it lol.
jammyjimmy - 11 Aug 2006 09:07 - 73 of 2350
Jeeee'z......UP 3.28% Surely not....must be some kind of mistake, don't you think Laila?
ptholden
- 11 Aug 2006 10:22
- 74 of 2350
Yep, I'm really worried - LoL
Anyone who is concerned about daily fluctuations in the SP shouldn't really be invested in any stock, unless of course you are a day trader. The whole point of investing rather than trading is to take a medium to long term view. SER have just issued an operational update, it is unlikley that further news will be released to stimulate the SP until the Results in September. In the mean time I don't expect any significant moves, indeed it may well drift, small caps often do without news. However, I am quite looking forward to the next 12 months. Why:
1. The Results are expected to be good.
2. The Company is producing approx 180 bopd (perhaps more), this is creating monthly revenues of at least $300k per month
3. The CAZA settlement is expected before the end of the year, no-one knows how much this is likely to be, the Dec 2005 Results state that the case is already settled in SER's favour and can only be a bonus to the balance sheet.
4. New wells will be drilled in the Tapia Field before the end of the year, thus increasing both production and revenues.
5. The under developed Eureka Field will be mapped further. More oil is known to be there, just how much remains to be seen.
6. Further mapping and drilling of the CBM leases in Kansas will be undertaken. The fact that Methane is there is a given, but there is also a possibility of Gas and Oil. Only time will tell if that is true.
So, no, I am not worried at all, exactly the opposite. There is potentially significant news flow over the next 12 months. We shall have to just wait and see. Nothing happens quickly in this business and the quiet periods will, as always, be an opportunity for the bashers to have their say. Best dig in now bashers, because by this time next year, you will be gone.
All in my own opinion, I am sure you can all make your own minds up re SER.
pth
Anyone who is concerned about daily fluctuations in the SP shouldn't really be invested in any stock, unless of course you are a day trader. The whole point of investing rather than trading is to take a medium to long term view. SER have just issued an operational update, it is unlikley that further news will be released to stimulate the SP until the Results in September. In the mean time I don't expect any significant moves, indeed it may well drift, small caps often do without news. However, I am quite looking forward to the next 12 months. Why:
1. The Results are expected to be good.
2. The Company is producing approx 180 bopd (perhaps more), this is creating monthly revenues of at least $300k per month
3. The CAZA settlement is expected before the end of the year, no-one knows how much this is likely to be, the Dec 2005 Results state that the case is already settled in SER's favour and can only be a bonus to the balance sheet.
4. New wells will be drilled in the Tapia Field before the end of the year, thus increasing both production and revenues.
5. The under developed Eureka Field will be mapped further. More oil is known to be there, just how much remains to be seen.
6. Further mapping and drilling of the CBM leases in Kansas will be undertaken. The fact that Methane is there is a given, but there is also a possibility of Gas and Oil. Only time will tell if that is true.
So, no, I am not worried at all, exactly the opposite. There is potentially significant news flow over the next 12 months. We shall have to just wait and see. Nothing happens quickly in this business and the quiet periods will, as always, be an opportunity for the bashers to have their say. Best dig in now bashers, because by this time next year, you will be gone.
All in my own opinion, I am sure you can all make your own minds up re SER.
pth
moonshine - 11 Aug 2006 10:31 - 75 of 2350
Good post pt. Just one query, how did you find out that "the [CAZA] case is already settled in SER's favour"?
ptholden
- 11 Aug 2006 10:59
- 76 of 2350
moonshine, the Hardman report states that SER have been exonerated of all blame re the blow out mand therefore CAZA will have to pay compensation, additionally the Dec 2005 Results state that the case is already settled and that only the amount of compensation remains to be resolved.
pth
pth
moonshine - 11 Aug 2006 11:31 - 77 of 2350
Thanks for the clarification, pt.
ptholden
- 11 Aug 2006 11:35
- 78 of 2350
moonshine, think I am losing my marbles, the case IS settled; from the SER Results Dec 2005:
'The wrongful death lawsuit relating to a blowout when drilling a well in the Tapia Oil field in 2002 was recently settled with no liability or costs to Sefton Resources, Inc. or its subsidiaries and the litigation with the drilling company relating to the drilling costs and possible damages is still in process.'
Edit: I have amended my posts accordingly!! (Again!!!)
pth
'The wrongful death lawsuit relating to a blowout when drilling a well in the Tapia Oil field in 2002 was recently settled with no liability or costs to Sefton Resources, Inc. or its subsidiaries and the litigation with the drilling company relating to the drilling costs and possible damages is still in process.'
Edit: I have amended my posts accordingly!! (Again!!!)
pth
stewart3250
- 11 Aug 2006 13:35
- 79 of 2350
pt, Good board by the way apart from that muppet Laila, regarding Caza, my understanding was that the only matter to be resolved was if the drilling company were liable how much Sefton would receive in the form of comp for loss of earnings, I understood that if successful and I understand that they will be that most likely outcome would be that Sefton will have some wells drilled for free.
ptholden
- 11 Aug 2006 13:47
- 80 of 2350
stewart,
Pretty much my understanding also. Drilling of free wells would suit both parties. A cash settlement would obviously impinge on Caza's balance sheet, whereas if they were to offer free wells, the costs of that would have much less of an impact. We know that SER are planning to drill additional wells in the Tapia Field this year, so would seem a sensible resolution. An amount of $1m is being bandied around to compensate SER for costs and loss of revenue compensation, although I have no idea if that figure is accurate. Having a few wells drilled for 'free' would certainly support SER's claim that additional funding is not required to support further organic growth.
pth
Pretty much my understanding also. Drilling of free wells would suit both parties. A cash settlement would obviously impinge on Caza's balance sheet, whereas if they were to offer free wells, the costs of that would have much less of an impact. We know that SER are planning to drill additional wells in the Tapia Field this year, so would seem a sensible resolution. An amount of $1m is being bandied around to compensate SER for costs and loss of revenue compensation, although I have no idea if that figure is accurate. Having a few wells drilled for 'free' would certainly support SER's claim that additional funding is not required to support further organic growth.
pth
markusantonius
- 11 Aug 2006 15:14
- 81 of 2350
Laila, How many SER do you actually hold (if any?), if you don't mind me asking?
Laila, How many SER do you actually hold (if any?), if you don't mind me asking?
Laila, How many SER do you actually hold (if any?), if you don't mind me asking?
Laila, How many SER do you actually hold (if any?), if you don't mind me asking?
Laila, How many SER do you actually hold (if any?), if you don't mind me asking?
Laila, How many SER do you actually hold (if any?), if you don't mind me asking?
Laila, How many SER do you actually hold (if any?), if you don't mind me asking?
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