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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)
rhino213
- 13 Jun 2007 13:40
- 641 of 2350
I still have confidence in these guys. I think that the board need a bit help securing the finance they want though. When they can convince somebody to lend them a few quid we should see a nice rise in the SP providing they spend it wisely.
I'm disappointed at the moment but I'm not jumping ship just yet. I'll hang on to these for while.
I'm disappointed at the moment but I'm not jumping ship just yet. I'll hang on to these for while.
rhino213
- 13 Jun 2007 13:43
- 642 of 2350
and if it dips to below 4.5p i might even buy a few more. Get the old average cost per share down.
rhino213
- 13 Jun 2007 17:47
- 643 of 2350
1 million buys vs. 2 million sells. Lots of people cutting their losses and a few guys and gals picking up some cheap stock.
Give it a week or 2 and this will back up around 6-6.5p.
Thats just my opinion though! Or....we could be heading for a Leeds united style verse of "sack the board, sack the board, sack the board"
Give it a week or 2 and this will back up around 6-6.5p.
Thats just my opinion though! Or....we could be heading for a Leeds united style verse of "sack the board, sack the board, sack the board"
driver
- 13 Jun 2007 17:52
- 644 of 2350
A bit disappointing today but thee wasn't a mass exit the sp has been here before I was topping up at 4.4p a few months back. I still have faith SER will produce the goods With discussions well advanced with Banking institutions and the operations Reports still to come, the sp will reflect this with a multi bag over the coming year.
The Board believes that we are now in a stronger position to grow this company by a mixture of additional financial investment, joint ventures and cash flow.
With discussions well advanced with Banking institutions and potential joint venture partners, we are confident that we will be able to develop the business in the coming year and maximise shareholder value.
On the oil side, Tapia surface facilities were upgraded and production remained
steady. At Eureka Canyon a geochemical survey of our oil and gas bearing assets
was encouraging and follow up work is planned. The Operations Reports that will
be announced shortly will outline in more detail the significant work that has
been carried out during the year.
The Board believes that we are now in a stronger position to grow this company by a mixture of additional financial investment, joint ventures and cash flow.
With discussions well advanced with Banking institutions and potential joint venture partners, we are confident that we will be able to develop the business in the coming year and maximise shareholder value.
On the oil side, Tapia surface facilities were upgraded and production remained
steady. At Eureka Canyon a geochemical survey of our oil and gas bearing assets
was encouraging and follow up work is planned. The Operations Reports that will
be announced shortly will outline in more detail the significant work that has
been carried out during the year.
john50 - 13 Jun 2007 20:10 - 645 of 2350
buys1,505,354 sells 2,062,445 difference of 557,091 drop over done
kkeith2000
- 13 Jun 2007 20:28
- 646 of 2350
My thoughts exactly john50
kkeith2000
- 14 Jun 2007 09:22
- 647 of 2350
The website has been updated so things looking a bit better on that front all we want is the s/p to lift a little
driver
- 14 Jun 2007 10:46
- 648 of 2350
2006 Operations Report for TEG Oil & Gas USA, Inc. 2006 was a year of preparation for the next phases of expansion in the California oil and gas operations. TEG USA reinvested much of the oil production revenues from the newer wells at Tapia back into the field in the form of facilities renovation and improvements.
http://www.seftonresources.com/news/current_activities/current_activities.asp#2
driver
- 14 Jun 2007 11:00
- 649 of 2350
RAS - 14 Jun 2007 12:08 - 650 of 2350
I see reserves (barrels of oil) have been almost halved (page 39).
kkeith2000
- 14 Jun 2007 18:16
- 651 of 2350
moonshine any chance you could put details on here of the email from Gary or just a opinion of it. Thanks it keeps us all informed on this board
Keith
Keith
moonshine - 18 Jun 2007 15:51 - 652 of 2350
keith, sorry didn't see your email until now.
My opinion of the email from Gary is that it seemed geniune and positive. However, this seems to be an eternal cry from SER, and I wouldn't want any one to be buying based on this.
Until SER show signs of being able to increase production I think the sp will be staying around this level. Increased production could come from:
a) steam generation, but will they risk implementing steam generation on the 5 wells drilled in 2005, before they can ensure production with the new wells. These are their bread and butter at the moment, and just keeping their heads above water.
b) announcing a JV on CBM, Tapia or Eureka, or a combination of all three.
c) announcing a debt facility.
Hopefully we will hear more at or before the AGM. I continue to hold and top up, but I am coming to the 2 year anniversary of my initial investment, and they are wearing me down ;-)
My opinion of the email from Gary is that it seemed geniune and positive. However, this seems to be an eternal cry from SER, and I wouldn't want any one to be buying based on this.
Until SER show signs of being able to increase production I think the sp will be staying around this level. Increased production could come from:
a) steam generation, but will they risk implementing steam generation on the 5 wells drilled in 2005, before they can ensure production with the new wells. These are their bread and butter at the moment, and just keeping their heads above water.
b) announcing a JV on CBM, Tapia or Eureka, or a combination of all three.
c) announcing a debt facility.
Hopefully we will hear more at or before the AGM. I continue to hold and top up, but I am coming to the 2 year anniversary of my initial investment, and they are wearing me down ;-)
kkeith2000
- 18 Jun 2007 16:50
- 653 of 2350
Thanks moonshine Ive been in for over year now. Patience is wearing thin on lots of us
ptholden
- 18 Jun 2007 17:05
- 654 of 2350
Although I shouldn't be surprised at the lack of progress, I did rather expect SER management to get to grips with the mechanics of 'growing' a business during the last year. It would appear that they have not, very little has been achieved except to tread water. Quite a disappointment when they have so much potential, but seemingly little drive to make things happen quickly, if at all. Since the results I have sold about half of my holding and switched the funds elesewhere, the remainder I will hold for another year in the rather forlorn expectation that the management can do more than paddle sideways.
pth
pth
moonshine - 18 Jun 2007 17:45 - 655 of 2350
They said they were going to 'gear up activity' during 2007, and there is still 6 months of 2007 in which they can do it. However when I read that, I was expecting them to have started drilling and increased production before start of the H2 2007.
At least they have prepared and upgraded at Tapia for the extra production they hope to generate soon. Hopefully they have been as busy on the negotiation front and will soon be in a position to announce on how they are going to fund achieving their goals.
But until we get the announcement on finance/jv... Where the f**k is it? Show us your drive and desire, SER. Show us the market is wrong, and you are worth more than 5p.
At least they have prepared and upgraded at Tapia for the extra production they hope to generate soon. Hopefully they have been as busy on the negotiation front and will soon be in a position to announce on how they are going to fund achieving their goals.
But until we get the announcement on finance/jv... Where the f**k is it? Show us your drive and desire, SER. Show us the market is wrong, and you are worth more than 5p.
john50 - 21 Jun 2007 20:32 - 656 of 2350
http://www.capmarkets.com/ViewFile.asp?ID1=70125&ID2=156299529&ssid=1&directory=12925&bm=0&filename=June07_monthly_-_2.pdf
kkeith2000
- 21 Jun 2007 21:10
- 657 of 2350
The market story with Sefton Resources has been rather muddled by the recent results and what we regard as somewhat unfair press coverage.
Revenues from oil and gas sales for the trailing year increased from US$1.8m to US$2.6m, on the back of sustained production at Tapia. However, production costs also increased along with permitting costs, well restoration expenses and the initial costs involved in installing new surface facilities. These investments (particularly the necessary work on storage tank facilities) will pay-back.
General administration costs decreased, as a slight offset, reducing the overall loss to US$0.6m from US$0.7m. Notably non-cash items ran to US$0.9m.
Much seems to have been made about the reduction in reserves however the new independent engineer, Reid W. Ferrill & Associates, are rightly uber-conservative in their assessments. Although to have included nothing for Kansas seems a tad harsh, particularly on a P3 basis when neighbouring/adjoining CBM prospects are either tested or producing. If, however, that is what Sefton
needed to do to negotiate with appropriate financial institutions, then so be it ? it should prove to be in the long term interest.
Suffice it to say, management seems very confident of being able to raise the funds to finally move the company forward.
Revenues from oil and gas sales for the trailing year increased from US$1.8m to US$2.6m, on the back of sustained production at Tapia. However, production costs also increased along with permitting costs, well restoration expenses and the initial costs involved in installing new surface facilities. These investments (particularly the necessary work on storage tank facilities) will pay-back.
General administration costs decreased, as a slight offset, reducing the overall loss to US$0.6m from US$0.7m. Notably non-cash items ran to US$0.9m.
Much seems to have been made about the reduction in reserves however the new independent engineer, Reid W. Ferrill & Associates, are rightly uber-conservative in their assessments. Although to have included nothing for Kansas seems a tad harsh, particularly on a P3 basis when neighbouring/adjoining CBM prospects are either tested or producing. If, however, that is what Sefton
needed to do to negotiate with appropriate financial institutions, then so be it ? it should prove to be in the long term interest.
Suffice it to say, management seems very confident of being able to raise the funds to finally move the company forward.
driver
- 21 Jun 2007 21:10
- 658 of 2350
This is what we are waiting for below, and the somewhat unfair press coverage that I agree with also sounds good but then it would holding loads of SER shares
Suffice it to say, management seems very confident of being able to raise the funds to finally move the company forward.
Suffice it to say, management seems very confident of being able to raise the funds to finally move the company forward.
kkeith2000
- 21 Jun 2007 21:12
- 659 of 2350
Thanks john50 for the link
john50 - 22 Jun 2007 08:59 - 660 of 2350
Sefton Resources Inc
22 June 2007
Sefton Resources Inc.
('Sefton' or 'the Company')
Directors Dealing, Exercise of Options
On 20 June 2007, options over a total of 600,000 common shares of no par value
in the Company ('Common Shares') were exercised by two directors as follows:
Name Number of Common Shares Exercise Price
Jeremy Delmar-Morgan 333,333 6 Pence
M.A Ashton 266,667 6 Pence
Following the above, the interests of the Directors in the Common Shares are as
follows:
Name of Director Number of Common Shares Percentage %
Jeremy Delmar-Morgan 4,280,178 3.7%
M.A. Ashton 984,267 0.9 %
Application has now been made for a total of 600,000 new common shares to be
admitted to trading on AIM. These new Common Shares will rank pari passu with
the existing Common Shares and dealing in the new Common Shares are expected to
commence on 28 June 2007.
The Annual Report containing Summary Financials, Notice of the Annual General
Meeting to be held July 9, 2007 and Proxy forms have been mailed to the
shareholders. The Full Financial Report from the auditors has been posted under
Investor Relations/ Consolidated Financial Statement on the Company's website
www.SeftonResources.com
along with complete Operations Report for TEG Oil & Gas
USA, Inc. and TEG MidContinent, Inc.
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