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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

Mine Man - 19 Jul 2007 17:15 - 730 of 2350

Hey Moon, I bet they will all think that is me throwing the dummy out lol!

moonshine - 19 Jul 2007 17:19 - 731 of 2350

For sure, MM. It has been said! ;-)

moonshine - 19 Jul 2007 17:21 - 732 of 2350

Think we may get the 'My job here is done' message soon?

Mine Man - 19 Jul 2007 17:42 - 733 of 2350

Lol Moon, I always said he was amassing a large stake here and driving everybody to distraction to get them as cheap as possible. It's just a shame he has destroyed so much in the name of a few pennies! I feel I have wasted 2 years counter-arguing his points after reading JJ's comments last night. I don't think it would have been wise to just allow him to post page after page of negative and very convincing argument without challenging it and trying to bring some balance back in. Oh well, all history. It will be nice now to say something positive without a 300 line response why Sefton could possibly have anything positive going for them at all lol!

REDHILL - 19 Jul 2007 17:46 - 734 of 2350

MM

So what do you think he has actually bought?

SECRUOSER - 19 Jul 2007 17:48 - 735 of 2350

I think it was my posts earlier on the 'other side' when I destroyed all his arguments that persuaded him to buy! :)

NabCom - 19 Jul 2007 17:54 - 736 of 2350

Glad to see you have found a new home MM
I have long thought that BB should be closed down if it were possible

Mine Man - 19 Jul 2007 17:58 - 737 of 2350

RAS - 19 Jul 2007 15:49 - 720 of 733 re the blue sky potential of Eureka? They have stated that they intend exploiting the Eureka Canyon lease assets and determine the likelihood of hydrocarbon traps and size of possible accumulations. I think priority will be to increase their present flow rate with the steaming and get additional wells drilled where they know the chance of success will be almost guaranteed. I would hope their first intention would be to place themselves in a position to guarantee they can service that loan from known sources before starting to spend it on any exploration.

Those nine wells added to the existing, with the steamer thrown in, will substantially alter the financial situation of the company and ensure they can move on with the other projects in the pipeline.

One of the comments in the Annual Report was that they were in advanced discussions with financial institutons AND JOINT VENTURE PARTNERS.

If they are only weeks away from getting the cash, I wonder how far away an announcement will be on a JV. Weeks too????????

Mine Man - 19 Jul 2007 18:02 - 738 of 2350

Red, who knows, but there are only three answers to why he is there and the level of his contributions to the thread.

He is shorting it big time, enough to work full time to ensure the selling continues.

He is buying, knowing that he will almost certainly see a large return, or

He is completely insane.

Personally, I reckon he is acumulating and all of a sudden, when finance is announced, he will be the biggest ramper known to mankind. Bigger even than me perhaps lol!

I actually don't see believing in an investment as ramping, but obviously some do!

Just off to kids disco, catch you all later :O(

moonshine - 19 Jul 2007 18:18 - 739 of 2350

kids disco, ummm. Sounds like a great opportunity for embarassing the kids :-)

SER doesn't seem to be volatile enough to make loadsamoney shorting it, but having never been a shorter, and being of the buy and hold variety of investor, I probably would be surprised. I think he is insane, but that doesn't rule out your second suggestion ;-)

Very sad that he destroyed the community, but it is transferrable(?). As I said on the dark side, I appreciated the way you (and others) tried to counter him. Anyway, lets not think of him anymore!

After today's trades, I think tomorrow will be interesting.

john50 - 19 Jul 2007 19:06 - 740 of 2350

Hi lads and lasses broad from advfn, very interesting day

Mine Man - 19 Jul 2007 20:34 - 741 of 2350

Funny you should mention embarrassing, my lad made me promise I would stay out of site for the two hours we were there lol! Had to stay in the damned bar! Shucks!

Hi Broad! Why don't people keep the same name? Yes, somethings going on not quite the norm!

Moon, think of who?

Mine Man - 19 Jul 2007 20:47 - 742 of 2350

Am I right in thinking that if you buy your shares, say on a T Trade for example and when the day comes to pay, you either sell and take your profit, sell and take your loss or pay the going rate and own them outright? If I am right (and excuse my ignorance if I am way off the mark because I always pay for what I buy) would it not be a possibility that the 3m shares in question were about to be plopped back into the brokers lap at a loss and to avoid this, the SP was dragged down a bit to allow the proud gambler the opportunity to hang on to them a bit longer?

Of course, that would be a little immoral of the broker and highly unlikely :O)

moonshine - 19 Jul 2007 21:47 - 743 of 2350

Sounds like you are talking about a rollover? If you buy on a T+ trade, you can chose to rollover, where the shares are sold and bought back for the same amount (and you pay commission) or you pay the difference between the sell & buy, which would be marginal.

I don't think that was a rollover; to me it looked like a broker has been accumulating shares to order. That was eventually recorded as a 'B' Broker to Broker trade, and then the shares were sold by the broker to the end purchaser on the 'O' trade.

Didn't we have a period when we got a load of 'B' trades for something like 10k followed immediately by 'O' trades. Was that in SER?

Take that 436k trade, and subsequent 436k 'K' trade reported today. That looks like a bit of gamesmanship to me. A sell to an MM, depress the price, immediately buy back from another MM (or maybe the same one), who choses to do it through a block trade, hence delaying the reporting of the buy back?

To me this increased online limit size, these trades and the reduction in HOOD's individual spread to 1.5p are all positive, BWTFDIK. Just my opinion :-)

john50 - 19 Jul 2007 21:52 - 744 of 2350

The 2 9million trades came within 2 minutes 1 at 5.00 and other at 5.05 looks to me like a rollover the B on the first one might rule that out

moonshine - 19 Jul 2007 21:57 - 745 of 2350

John, I guess only the brokers & trader will know for sure. Intriguing though.

Mine Man - 20 Jul 2007 07:12 - 746 of 2350

Morning all! Whatever it was, I think it unlikely somebody would divest that amount based on the AGM statement of finance being only weeks away (Unless it was one of the board who know the deal is so bad the SP will drop to 2p on the details being released lol)

moonshine - 20 Jul 2007 07:34 - 747 of 2350

Morning all.


$100 Oil by Jeff Rubin (CIBC World Markets)

Maybe Sefton are timing this about right, price wise.

Mine Man - 20 Jul 2007 07:36 - 748 of 2350

Thought for the day:

Finance "weeks away" announced on the 9th July 2007.

Director options taken on 22nd July 2007.

Would there be a required period of time before news of a financial impact on the company could be released, say 1 month?

This would mean, coincidentally, that the "weeks away" would fall 1 day after the anniversary of the director dealing. the first day the news could be released!

moonshine - 20 Jul 2007 07:41 - 749 of 2350

I think when Directors exercise options is not the same as them buying shares. Maybe they couldn't decide to allocate themselves options at a set price when they knew important/price sensitive news was about to be announced. But once they have the options, the price is set and I believe they can exercise those options whenever they want.

Should check the rules on this to make sure though.
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