Pete, I have now DMOR and am interested in having a punt - just a few however (skint atm, as you know!). Gonna try for 6p entry point - what do you reckon?

Up this morning, I notice - Laila, you have mislead us all here!

markus

LaLa's comments had nothing to do with the prospects of SER, shorting or otherwise. His posts were in direct retribution to comments I posted on an attempted 'pump n dump' stock.

In answer to your question of entry points I would offer the following:

1. Following consolidation, stocks often whipsaw until a new SP level is attained. The fact that SER's SP is up 10% one day and down a similar amount the next (or vice versa) is of no surprise to me.

2. There is an unfounded perception that following a consolidation, stocks fall in value, possibly, in the short term this may prove to be the case. However it is important to understand the skewed logic behind this perception.

When a company announces that they wish to consolidate, it is essential that the reasons for the consolidation are considered. In many cases the company perofrmance has been so poor that SP has been devalued to such a degree that to recover credibility and escape sub penny status, consolidation is the only option. At this point look at the fundamentals of the company. If they are crap, then further devaluation is likely. followed by administration, (PTG are a classic example).

In SER's case there is nothing fundamentally wrong with the company. They should report results in September that demonstrate profitability and their plans for the immediate and longer term (if they come to fruition) will enhance shareholder value. SER were unfortunate in terms of the well blow out / floods and fires that plagued oil production over the last two years and inevitably management need to recover city confidence before the full potential of the company is to be believed.

3. I actually think that thus far the SP has reacted extremely well to the consolidation and although the SP is still quite volatile, I don't think that 6p is necessarily on the cards. It is not long till the Results are announced and then there will be a steady flow of news, annoucing new wells in the Tapia and Eureka Fields, CBM porgress, CAZA settlement and so forth. Each of these events will stimulate the SP further. Personally, my view on SER is medium to long term and whether I buy at 6,7 or 8p is immaterial to me. When and if the SP is way beyond these levels the saving of 1p or 2p per share will be unimportant.

If I could predict 6p on this stock or any other with a certain degree of accuracy I would be a very rich man by now!!

The other thing that I didn't mention; I believe that there is only so much money to go around when it comes to investing in this type of stock. Quite often, 'investors' will chase the hot stocks (GOO at the moment) forcing sales in other holdings. Most are aware that the next news from SER is not anticipated until late Sept, allowing a switch to something more profitable in the short term before once again coming back to the original stock, in time for the next release of news. Henceanother reason for the volatility. AIMHO of course :-)

pth

Thanks for that, Pete.

I just can't see SER drifting to 6p? Surely the Hardman Report has some credibility in terms of how it has derived SER's value?

A stock is only worth what someone is prepared to pay for it Jameel.... In SERs case its past isn't the most credible and board far from the best. All in all though the foundations are good and SER may develop over time to give us all a nice return... Been in this one for years, originally bought in just after the blowout when the sp took a noise dive. Used to enjoy trading at .0025p as many I'm sure will remember.

exploisive thankx for getting bck

l cant see why we should drift to 6p ....Cash generative and surely classified as a producer and not merely an expo . From what many thought was a dead dog has turned out to be what could be a little gem . Stronly agree with Dynamite regarding the board . l am sure as time goes on we shall see a few new faces on the board exerted by big stakeholders

TFC - Dynamite??

Not much happening here at the moment, which I'm not all that surprised about.
Personally I am quite happy at the SP since consolidation, often following a consolidation, the SP takes something of a hammering until a new level is found. Looks like it has settled at around an Offer of 7.5p.

I have been watching the trades going through over the last week or so and although difficult to judge exactly what is what due to the silly NMS of 3000, I think there has certainly been more buying pressure than selling. When all said and done, I just watch those to pass the time and try and get a feeling for how things are going. Towards the end of September is the important time. Apart from reporting a maiden profit, hopefully we will find out how the CAZA settlement is going, production updates and intentions for the additional wells and CBM development.

pth

Good posts, guys. But let us beware. Caspian is also producing good quality oil and look what happened to it price after peaking at 60p, at one stage! Depends on how much is already factored into the current sp and how good the September update will be. Still DMOR on SER right now.

M.

CSH is currently capitailised at appox 15M.
Recent production has been 300 bopd.
Last Results show a YEARLY revenue of 350k and a loss of over 1M. However, revenues will increase now the wells have been worked over.
Can't find what reserves CSH claim.

SER is currently capitalised at approx 8M
Recent production has been 180 bopd.
Results in Sept will (should!) show a maiden profit, consenus appears to be 400k+
SER revenues will increase and probably surpass 300 bopd when the new wells are drilled and brought on line.
SER are sitting on 75 million bbls of known reserves.

On the face of it, similar companies, looks like SER are undervalued in comparison.

pth

SER has crap history though and a board that well need to be replaced for this company to pick up and gain some respect with investors.

explosive

You are half right.
SER's history has been blighted somewhat. However, the CAZA blowout was not of their making, settlement / compensation due very soon. Nor were the California fires and floods of their making. The way that the board dealt with those issues has caused loss of investor confidence.
Currently the board does not need to be replaced; what the board need to demonstrate is an ability and willingness to take the company forward. By which I mean, drilling of the additional wells in the Tapia Field, this is already planned; SER have piggy backed onto other producing companies in the area drilling plans, so will have to wait their turn; further map the Eureka Field to fully exploit any additional reserves; drill new wells in the Eureka Field to improve and enhance production; take forward the CBM prospects in East Kansas, the methane is there and due to existing wells / infrastructure, this area of the business is ripe for revenue production; fully map the East Kansas acreage in order to discover the possibility of an oil / gas play in addition to the CBM.

The performance of SER, or to be more accurate the historical lack of performance is rightly highlighted in the Hardman report as a likely reason why the SP is currently depressed. The board now have a sound footing on which to progress the company reputation, balance sheet and share price. If from what is a golden opportunity to do so, they fail, I will agree that the board need to be replaced. Until they do fail, I for one am happy to be invested in SER for the long term and if additional funds become available to top up further.

pth

A slightly abridged version of the Boards's Bios from the SER website. It is quite clear that the Board do have a wealth of experience in the Gas and Oil Industry. I hope they put it to good use!

Jim Ellerton Chairman and CEO

Mr. Ellerton is a geologist and one of the founders of Sefton Resources, which was formed in 1994. Mr. Ellerton has over 25 years experience in the development and evaluation of oil and gas prospects throughout the major basins of North America. He is responsible for business development, screening mergers and acquisitions, funding and shareholder relations. Prior to starting Sefton Resources, Jim was successful in the financing and development of smaller oil and gas companies.

Born and raised in England, Jim started his education in London and graduated from the University of Toronto with an Honors Bachelor of Science Degree in Geology.

Norm Thachuk Non-Executive Director

Norm Thachuk is a Non-Executive Director of Sefton with over 30 years in the oil and gas industry. His background covers diverse areas such as, developing exploration programs, implementing computer geological technology, and conducting petrophysical evaluations. He has spent the majority of his career in the exploration and production sector, initially with Shell in Canada, Turkey and Spain as a senior petroleum engineer.

Norm has been a consultant and vice president to Ranger Oil Limited and a consultant to Pan Canadian Petroleum. Prior to working at Ranger Oil, Norm was president of Atlantic Energy Corporation for 7 years. Norm graduated from the University of Toronto in 1960 with an Honors Bachelor of Science and Geological Engineering Degree.

Tony Ashton Non-Executive Director

Mr. Ashton has over 45 years in the Oil and Gas Industry. He began his career as a Geologist in 1958 (after emigrating from England to Canada), at Canada Southern Petroleum LTD, a public company. He held his first position as a junior geologist and by 1976, he earned the title of Chief Geologist.

After resigning from Canada Southern Petroleum LTD (1976), he formed Tup Resources LDT, a private Oil and Gas Company. Tup Resources LTD participated in oil and gas ventures and consulted to several junior oil and gas companies. Mr. Ashton also served as a director and officer of many of these companies.

In 1986, Mr. Ashton returned to Canada Southern Petroleum LTD as a consultant. He was a Director of the company from 1988-2001. By 1996, he became Chief Executive Officer of the company and President. In the year 2001, when he retired, Canada Southern Petroleum LTD was listed on the Toronto Stock Exchange in Canada and on NASDAQ in the USA.

Mr. Ashton was born in Glossop, Derbyshire, England and graduated with honors from Manchester University with a Bachelor of Science Degree in Geology.

Jeremy Delmar -Morgan Non-Executive Director

Mr. Delmar-Morgan joined the Board of Directors of Sefton in September 2004. He brings to the company a wealth of experience in the investment and brokerage community having been associated with Teather & Greenwood from 1979 until 2004. In 1982, he became a partner in Teather & Greenwood and in 1992 was appointed senior partner with the same firm. In 1998, when Teather & Greenwood became a public company, Mr. Delmar-Morgan became the CEO and Chairman of the Board. He held these positions until 2001 when he stepped down as CEO and Executive Chairman remaining as Non-executive Chairman until his retirement in April 2004.

Mr. Delmar-Morgan was born in Scotland in 1941, received an MA from Cambridge in 1963, and became a member of the Securities Institute in 1985.

Harry Barnum Director and U.S. Operations President

Harry is a Director of Sefton, and the President of TEG Oil & Gas, USA Inc, (a wholly owned subsidiary of Sefton), and is responsible for the day-to-day operations of the company's California assets. He has more than twenty years of industry experience from 6 years with Chevron through several independent firms to his last position with Windsor Energy Corporation, all in California. Harry has degrees (BA and MA) in Geology from the State University of New York at Buffalo (1980).

Robert "Bruce" Mackay BSc., JD Vice-President

Bruce is Vice-President of Sefton, and the President of TEG MidContinent, Inc, (a wholly owned subsidiary of Sefton), and is responsible for the day to day operations of the company's Kansas assets. Mr. Mackay is a lawyer who, after graduating from Oklahoma City University in 1977 with a law degree, has worked as a land manager and land consultant for the past 28 years for various companies including Flare Energy, Page Petroleum, K-N Energy, Cabot Oil & Gas, Ocean Energy, Whiting Petroleum, and most recently as Land Consultant to Dart Oil & Gas/Dart Cherokee Basin and their CBM project in Kansas.

Gary Dillabaugh Corporate Secretary

Gary joined Sefton Resources in May 2002, as an investor relations coordinator and was appointed Corporate Secretary in 2004. In addition, he is responsible for public relations in Britain, the United States, and Canada.

For 11 years, Gary Dillabaugh has been a managing partner of a successful dental practice in Denver. He has been associated as an investor, fundraiser, corporate executive and director of a number of oil and gas companies, both private and public for over 35 years.

Gary graduated with a BSc from the University of Victoria and a DMD from the University of British Columbia Dental School in 1972.

Well at least if Sefton takes a dive we can all demand free dental treatment from Gary as compensation. He might even be able to wire that rampers jaw shut!

rhino
:-)

RHINO NICE ONE!!!!!!!!!!!!!!!

PT when I say crap history I mean just that, not crap history which either was or wasn't SERs fault! SER wasn't judged on the fires or blowout but the measures in place to prevent these actions and the time its taken the company to recover from them. Could more have been done? The sp suggests yes which again has had a knock on effect to investor confidence.

I noticed Gary is also responsible for public relations, wonder how much time in the past 12 months hes dedicated to that role!