SEFTON RESOURCES (AIM:SER) – Operations Update

by Michael on May 2, 2012

Sefton Resources (AIM: SER), the independent oil and gas exploitation and production company with interests in California and Kansas, is pleased to announce an update on its operations (RNS dated May 2nd 2012).

 Highlights:

 Oil & Gas in Kansas

·     Pipeline system on schedule to flow first gas in the summer

·     LAGGS sales line has been completed

·     40-50 oil & gas wellbores for the recompletion program have been leased, in the process of being leased or being acquired

·     Discussions continue with potential suppliers of third party gas

·     Sales agent has been appointed to market gas

·     Exploration program is underway

 Oil in California

·     Remedial work by workover rig has already allowed oil production to increase to 142 BOPD with as much as 220 BOPD recorded in recent days

·     Four more well workovers expected to lead to a further increase in production

·     Cyclic steaming ongoing with the Yule #5 well showing a 200% improvement in production post-steaming

·     Dr Farouq Ali’s full field steam flood report on schedule to be received by the Company in June

 Administration

·     Inability to reach a mutually beneficial contract has led to the resignation of the Company’s CFO who will continue to act as Financial Consultant for Sefton.

 Research coverage

·     Hardman & Co has now initiated research coverage and the report can be found on our website www.seftonresources.com 

 Jim Ellerton, Chairman of the Board said:

 “Activating the Leavenworth County pipelines (LAGGS and Vanguard) will generate an additional stream of cash flow and increase reserves. The recompletion program will see oil, gas and CBM wells brought back into production and the leasing program is being accelerated with the plan to double our acreage in Kansas. Oil production at California is now heading towards expected levels with further increases expected from the ongoing well workovers and cyclical steaming programs.”

 

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