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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)
katcenka - 27 Mar 2007 13:53 - 321 of 2350
yes, I heard that before RAS.. the hardman report cant be trusted FACT!!!.. they said the company was worth 55p in the last report and shares dropped 60%
LOL. and none of what they said transpired. FACT!!!
LOL. and none of what they said transpired. FACT!!!
driver
- 27 Mar 2007 13:58
- 322 of 2350
katcenka
Yes cheers
That is the point the company will be worth 55p when it does transpire, FACT!!!
Yes cheers
That is the point the company will be worth 55p when it does transpire, FACT!!!
RAS - 27 Mar 2007 13:59 - 323 of 2350
Yes, but the past is the past katcenka, just because none of what they said transpired YET, that doesn't mean it never will! To assume that would be the biggest mistake of all, IMO.
Always look ahead, never behind in the share game.
Always look ahead, never behind in the share game.
katcenka - 27 Mar 2007 14:08 - 324 of 2350
yes, but the whole report was totally wrong.. there were loads of mistakes. I dare say there are now also.
I bet English bigballs is ramping this report to no end on the darkside thread
I bet English bigballs is ramping this report to no end on the darkside thread
RAS - 27 Mar 2007 14:11 - 325 of 2350
The only thing they got wrong as far as I can see is the date the drilling programme would begin.
Its no use having a fixed viewpoint in this market. Like I said, you've got to look forward, not backward. Things DO change.
But unfortunately it seems your fixed opinion doesn't.
Not sure how you can "ramp" a report (thought you could only ramp a shareprice?) but since it was released last June, I doubt people are still talking about it now. They will be looking for a revised report with new figures as stated in the last monthly newsletter.
Its no use having a fixed viewpoint in this market. Like I said, you've got to look forward, not backward. Things DO change.
But unfortunately it seems your fixed opinion doesn't.
Not sure how you can "ramp" a report (thought you could only ramp a shareprice?) but since it was released last June, I doubt people are still talking about it now. They will be looking for a revised report with new figures as stated in the last monthly newsletter.
capetown
- 27 Mar 2007 14:15
- 326 of 2350
Ras,i was in this when it shot up to 12p for no reason,it then promptly fell to current levels,i am thrilled the sp is picking up but not convinced that it will pick up untill we get good news,and you have to admitt SEFTON have been shocking as far as investor relations are concerned,just my opinion,and a holder like you.
GOOD luck to all of us that HOLD.
GOOD luck to all of us that HOLD.
Greyhound - 27 Mar 2007 14:15 - 327 of 2350
Naturally we all have our own views but some of us are happy with our investment here and think that we're going to see an about turn. To say the whole report is totally wrong seems a little foolhardy at this stage.
ptholden
- 27 Mar 2007 14:15
- 328 of 2350
Probably one thing I have recognised (although perhaps still to learn) is that patience is more often then not required when in investing in any stock and especially so with AIM companies. Hardman have recognised the shortfalls in their report and have withdrawn same until the picture clarifies. Personally, I didn't invest in SER because of that report, but because of the potential of the two oils fields to produce revenue and the CBM fields. The report is history, forget about it; what is important now is do management have the skills to build on reasonable foundations? Remains to be seen.
(Katcenka - course you sold out during the last rsie and didn't lose a penny and now you're back berating the company - wonder why? Sour grapes? LoL)
(Katcenka - course you sold out during the last rsie and didn't lose a penny and now you're back berating the company - wonder why? Sour grapes? LoL)
katcenka - 27 Mar 2007 14:24 - 329 of 2350
no, I just dont like seeing people lose money, the management needs sacking and replaced.
good luck.. you will need it
good luck.. you will need it
RAS - 27 Mar 2007 17:19 - 330 of 2350
Bet you've never even been in contact with the management.
griffzino - 27 Mar 2007 18:35 - 331 of 2350
katcenka = bluedolphine = cannoncan = bluekitten on ADVFN.
Serial ramper and deramper.
See advfn threads created by cannoncan for example.
Just a warning here guys.
Serial ramper and deramper.
See advfn threads created by cannoncan for example.
Just a warning here guys.
explosive
- 27 Mar 2007 19:14
- 332 of 2350
Been in on this stock for over 4 years now, buy on the lows and sell on the highs, this share is very volitile but has recently slowed down showing some stability. Whos cares though as we are due another up swing.... Will say though that I can't see this going to 15 before if falls, as its always been a share for the early birds who have the time and patience to wait..... If you look for previous threads you'll find plenty on past performance and speculation. Previous threads also make this one sound like a broken record.
katcenka - 27 Mar 2007 20:01 - 333 of 2350
this gives a fair and accurate picture
gondola - 20 Mar'07 - 18:18 - 1275 of 1398
I note that hardman have served an update in relation to sefton. Clearly the market is rather unimpressed. The volume has been pitiful.
Here are the main points covered:
1) Caza is settled. Indeed, but the outcome went against sefton and proved another dent in an already weak balance sheet.
2) Board reshuffle. This is nothing new, just a rearrangement of a bunch of numpties who have failed to deliver on any expectation in the past. Attempting to put a positive spin, on this, Hardman are really clutching at straws.
3) Steam generator - again this development has been repeatedly discussed but as yet no tangible outcomes. I would remind readers that data to date from other operators is limited in terms of the extent to which production is enhanced from using similar techniques. Should readers request it I can submit it here.
4) Eureka - again just reiterating what we were previously told. Mapping and evaluation ongoing. Anything further? No, thought not.
5) Rig availability - described by hardman as less of an issue than in the past . Oh dear. Sefton, in their ts suggested it was no longer an issue at all, save that it was subject to finance. Surely not more porkies!
6) Which leads me nicely to the final issue of finance. We are advised that they are still making a decision on this. What on earth are they mulling over. It has taken a year. And what is this nonsense about optimal packages. Frankly, they ought to take what they get. I think it highly unlikely there is more than one offer tabled. In fact I would be surprised if there was an offer at all, based on past performance.
The net import is that this is another update from hardman which effectively states that ser have made no further progress since last time. Moreover, any positive spin from hardman needs a little caution. They have a tendency to believe what they get told by head honchos, only to be left with egg on their face. We all know that from the colossal gulf between what they were told by ser last June and what was actually delivered. Additionally, we have been told by many posters here that ser have portrayed optimistic scenarios during telephone conversations that never materialised.
In relation to hardman, such caution cannot be reinforced enough. Heres what they wrote last June about another company they cover, namely telephone maintenance group (is that minermans company?):
Interims look solid to us and from the tone of the Chairman, there will clearly be a profit in the second half. What happened? FY losses doubled, directors resigned and the company was suspended. Lol
Weigh and balance the evidence yourself. Buy facts not hope says gondola. If the expectations of optimal finance are met , then one can always buy in. It does not seem likely that the price will run away. One only need to look at the reaction today to accept that.
Investing in situations like ser requires an appreciation of risk v reward. At the moment , in my considered view, the risks firmly outweigh the reward. Should the balance change, then change with it.
DYOR.
gondola - 20 Mar'07 - 18:18 - 1275 of 1398
I note that hardman have served an update in relation to sefton. Clearly the market is rather unimpressed. The volume has been pitiful.
Here are the main points covered:
1) Caza is settled. Indeed, but the outcome went against sefton and proved another dent in an already weak balance sheet.
2) Board reshuffle. This is nothing new, just a rearrangement of a bunch of numpties who have failed to deliver on any expectation in the past. Attempting to put a positive spin, on this, Hardman are really clutching at straws.
3) Steam generator - again this development has been repeatedly discussed but as yet no tangible outcomes. I would remind readers that data to date from other operators is limited in terms of the extent to which production is enhanced from using similar techniques. Should readers request it I can submit it here.
4) Eureka - again just reiterating what we were previously told. Mapping and evaluation ongoing. Anything further? No, thought not.
5) Rig availability - described by hardman as less of an issue than in the past . Oh dear. Sefton, in their ts suggested it was no longer an issue at all, save that it was subject to finance. Surely not more porkies!
6) Which leads me nicely to the final issue of finance. We are advised that they are still making a decision on this. What on earth are they mulling over. It has taken a year. And what is this nonsense about optimal packages. Frankly, they ought to take what they get. I think it highly unlikely there is more than one offer tabled. In fact I would be surprised if there was an offer at all, based on past performance.
The net import is that this is another update from hardman which effectively states that ser have made no further progress since last time. Moreover, any positive spin from hardman needs a little caution. They have a tendency to believe what they get told by head honchos, only to be left with egg on their face. We all know that from the colossal gulf between what they were told by ser last June and what was actually delivered. Additionally, we have been told by many posters here that ser have portrayed optimistic scenarios during telephone conversations that never materialised.
In relation to hardman, such caution cannot be reinforced enough. Heres what they wrote last June about another company they cover, namely telephone maintenance group (is that minermans company?):
Interims look solid to us and from the tone of the Chairman, there will clearly be a profit in the second half. What happened? FY losses doubled, directors resigned and the company was suspended. Lol
Weigh and balance the evidence yourself. Buy facts not hope says gondola. If the expectations of optimal finance are met , then one can always buy in. It does not seem likely that the price will run away. One only need to look at the reaction today to accept that.
Investing in situations like ser requires an appreciation of risk v reward. At the moment , in my considered view, the risks firmly outweigh the reward. Should the balance change, then change with it.
DYOR.
driver
- 27 Mar 2007 20:29
- 334 of 2350
Hardman MONTHLY MARCH 2007
SEFTON RESOURCES
We finally believe that consolidation at Sefton is drawing to a close. The Caza lawsuit is now settled and despite the sad loss of Norman Thachuk from the board due to ill health, the resultant management reshuffle means that each subsidiary division of the company is represented at board level which had not previously been the case. Operationally, construction of the steam generator to be used at Tapia is nearing completion and is due for delivery in mid April. At Eureka the geochemical survey has been completed with the results and their implications for field development at Eureka being evaluated. Most importantly we understand that a final decision on an optimal financing package is likely to be made soon and rig availability is less of an issue than in the past. We are awaiting new engineering data so we can restate financial forecasts at the earliest opportunity.
SEFTON RESOURCES
We finally believe that consolidation at Sefton is drawing to a close. The Caza lawsuit is now settled and despite the sad loss of Norman Thachuk from the board due to ill health, the resultant management reshuffle means that each subsidiary division of the company is represented at board level which had not previously been the case. Operationally, construction of the steam generator to be used at Tapia is nearing completion and is due for delivery in mid April. At Eureka the geochemical survey has been completed with the results and their implications for field development at Eureka being evaluated. Most importantly we understand that a final decision on an optimal financing package is likely to be made soon and rig availability is less of an issue than in the past. We are awaiting new engineering data so we can restate financial forecasts at the earliest opportunity.
ptholden
- 27 Mar 2007 21:03
- 335 of 2350
katcenka
Gondola is a total loon who has infested the ADVFN thread on an almost hourly basis, anyone who pays attention to his ramblings, nevermind copying and pasting to another board is clearly of the same ilk. Do us all a favour, if you are capable of posting your own rational thought, whether it be negative or postive, crack on. If not go back to your ramping / deramping on the other side.
Gondola is a total loon who has infested the ADVFN thread on an almost hourly basis, anyone who pays attention to his ramblings, nevermind copying and pasting to another board is clearly of the same ilk. Do us all a favour, if you are capable of posting your own rational thought, whether it be negative or postive, crack on. If not go back to your ramping / deramping on the other side.
Greyhound - 28 Mar 2007 08:02 - 336 of 2350
I get the impression that some are disgruntled even by missing out on a 20% increase over 5 days. High risk, high reward and to me current levels represent a good opportunity and it would be foolhardy to think both management and the working climate don't change for the better.
ptholden
- 28 Mar 2007 11:18
- 337 of 2350
Updated the Links in the Header. Also removed the reference to the Hardman report as I consider it no longer relevant, however, Hardman will be issuing an update soon.
RAS - 28 Mar 2007 11:27 - 338 of 2350
Exactly - out with the old, and in with the new is the right attitude. Updating the viewpoint with the latest facts, is the way to invest sucessfully, something some people (ie katcenka) have big problems with, which is why they spend all their time winding up others and not more productively.
By the way - nice golden-cross just formed/forming on the chart.
By the way - nice golden-cross just formed/forming on the chart.
capetown
- 03 Apr 2007 10:45
- 339 of 2350
450,000K ktrade just gone through @6.50,what is a k,trade??
RAS - 03 Apr 2007 11:00 - 340 of 2350
A 'k' trade is a trade executed using the Block trade facility. It can be used for trades exceeding 75x the NMS (very large trades). It can be delayed by upto 4 days I believe.
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