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This is so blatant. I cannot see how the authorities are failing to tackle Sefton Resources (LSE:SER). If the company’s uber expensive City lawyers Pinsent Masons wish to bully me again go ahead – you know where to send your letter and you know where I will file it. But once again Sefton has been caught with its knickers around its ankles misleading investors and it did so less than 5 weeks ago and 24 hours ahead of a rescue share placing. If I was a client of Dowgate stockbrokers I would be demanding my cash back from the most recent placing first thing tomorrow. This is a black and white case. To Sefton I say: Gotcha!
On 5th March Sefton announced via an RNS:
Preliminary oil production tank data for California for the month of February 2013 shows 3,443 barrels of oil which after an estimated 4% shrinkage equates to 118 barrels of oil per day (BOPD), a slight increase from January’s actual production of 111 BOPD.
On 6th March it raised £650,000 at 0.6p with lucky clients of Dowgate ponying up the moolah.
There has been no update on February or March output from California since then although Sefton was able to tell us Kansas output data for both months.
But you cannot hide the truth forever. And over at my favourite website DOGGR (run by the state of California) February output numbers have now been released over the weekend. You can see them HERE
2,918 barrels which over 28 days works out at 104 bopd.
I am comparing like for likes because the DOGGR data confirms January output at 111 bopd. So in fact Sefton’s output in February FELL by 6.3% rather than rising by 6.3% as the RNS on which Dowgate investors based their decision stated.
I am sure that Sefton has a good explanation for this. It bloody well better have because if this is not misleading investors ahead of a placing I really do not know what is.
I note that in the RNS of 5th March Jim Ellerton used this data to state:
“Sefton is progressing its operations in both California and Kansas to allow for substantially higher oil production in the coming years.”
He made this claim on data showing a rising output trend in California. But as we now know it was falling. February output was lower than that in January and December. In fact there were only two months of 2012 (August and September) when it was lower.
Ellerton’s statement is thus just pure hogwash. Unadulterated bullshit.
And so I have a “little list” of questions:
- For Sefton’s Nomad Allenby – you guys signed off on the RNS of 5th March. Were you misled by Sefton re the output data or were you complicit in the misleading? How long are you going to stand for this nonsense or will you show some honour and quit as Fox Davies did?
- For the AIM team/FSA – do you regard it as acceptable to mislead so blatantly about output in an RNS 24 hours ahead a share placing? If not when will you do something about Sefton?
- For Pinsent Masons -since you act as Company Secretary as well as Sefton’s lawyer did you have sight of the RNS of 5th March pre-publication? Presumably Pinsent Masons saw the placing letter that accompanied this placing. Did it mention February output data?
- For Sefton – how much of the £650,000 raised has been spent on air flights to and from Hawaii? What is your explanation for the fact that your RNS of 5th March was so misleading? Will you please sue me for libel for this article as well? I am accusing you of “misleading investors 24 hours ahead of getting a placing away which you needed as you were almost out of cash.”
Sefton the game is up. You are today utterly exposed as scumbags who have misled investors 24 hours ahead of a share issue.
Tom Winnifrith writes for 10 US and UK websites and you can follow his thoughts on twitter @tomwinnifrith or via links on his website www.TomWinnifrith.com
PS my friend Daniel Levi ( who is also being sued for libel by Sefton) has posted his take on this latest outrage HERE
Tom, this seems a serious offense, and punishable by law. I have checked DOGGR and your analysis seems to add up. Have you alerted the FSA yet? If you haven’t, I shall immediately. Investors should sell ASAP because I highly doubt there will be another successful placing. There can be no excuses this time and Mr Ellerton almost certainly faces jail.
Winfrey
My analysis of Sefton has always added up. You are correct, this is serious. The regulatory authorities have been alerted but it does no harm if others contact them as this does appear to be a total disgrace & they should be taking immediate action.
Best wishes
Tom
‘Jim Ellerton, Chairman of Sefton Resources, Inc. a qualified geologist with over thirty years oil & gas industry experience’ has just issued a RNS admittin he can’t do simple addition mathematics (!), he says, ‘We regret the initial over estimate of production for February, which included non-saleable fluids in error.’ !. Pure BS. How does he get away such bull?
er so we got our sums wrong, misled investors , got a placing away on the basis of the false numbers but can we now move on? Quite ludicrous.
T