Fair Oaks Income Share Discussion Threads

[averagejoe2] 21/11/2010 08:15

RGM/RRR
That Was The Week That Was ... In Australia
Minesite (registration) - ‎14 hours ago‎
The other companies that caught the eyes of market watchers, mainly because they swam against the tide, included Jupiter Mines (JMS), the latest plaything .
The other companies that caught the eyes of market watchers, mainly because they swam against the tide, included Jupiter Mines (JMS), the latest plaything of former BHP Billiton boss, Brian Gilbertson, and the slowly re-awakening (not that anyone knows why, yet) Bougainville Copper (BOC). Interest in Jupiter pushed the shares up by A8 cents to a 12 month high of A46 cents. That is a price which capitalises Jupiter at an impressive A$616 million, based entirely on the planned start of construction work on the big Tshipi manganese project in South Africa. The interest in Bougainville is as a pure exploration play around the mothballed copper mine of the same name that was once worked by Rio Tinto, until operations were halted by a small war. Last week Bougainville added A30.5 cents to close at A$1.70, just short of the 12 month high of A$1.74 reached on Friday. Officially, Rio Tinto says nothing is happening at the old mine, but if that's the case Bougainville Copper's market capitalisation means there is A$681 million worth of nothing going on, which is an awful lot of nothing

[mingle3] 19/11/2010 10:02

If you were to value Sefton on 5x earnings it would look like this.....

$2.7mill over 9 months
$0.3 a month x12= $3.6mill x 5years= $18mill
$18mill less debt $6.9mill= $11.1 or £6.9mill

£6.9Mill.......current M/cap £2mill
__________________________________________________

Valued on proven reserves

3.56Mill x $8= $28.48mill less $6.9 debt is $21.58mill or £13.42mill

£13.42mill..........current M/cap £2mill

Very undervalued imo

[mingle3] 19/11/2010 09:26

Sefton Resources, Inc.

("Sefton" or the "Company")



Sefton Provides Operations Update and Reports Nine-Month Period Financial Results



19 November 2010



Sefton Resources, Inc. (AIM: SER), an independent exploitation and production company with assets in the East Ventura Basin of California and the Forest City Basin of eastern Kansas, today provides a nine-month period operations and financial results update.



Nine-month 2010 Period Financial Results (in US$)

The Company reported oil and gas sales for the nine-month period ended September 30, 2010 of $2.7 million, as compared to $2.1 million in the nine-month period in 2009, an increase of 33%. The Company reported net income for the first nine months of 2010 of $338,000, or $0.00 per share, compared with a net loss of $317,000, or $0.00 per share, for the same period in 2009.



Sefton's total general and administrative expense declined by 5% in the 2010 nine-month period to $1.1 million, as compared to $1.2 million in the prior-year period.



Included in the 2010 costs and expenses was approximately $346,000 in depreciation, depletion and amortization (DD&A), as compared to $321,000 in 2009. Production expense during the 2010 nine-month period was $518,000, as compared to $426,000 in 2009. For the nine-month period 2010, net cash provided by operations was $856,000, as compared to net cash used in operations of $779,000 for the same period of 2009.



Stockholders' equity at September 30, 2010 was $8.7 million, as compared to $7.6 million at December 31, 2009. The Company's working capital at September 30, 2010 was $257,000, as compared to a working capital deficit of $354,000 at December 31, 2009. Long-term debt associated with Sefton's revolving line of credit was $6.9 million at September 30, 2010, and is unchanged from December 31, 2009. The Company is in compliance with all covenants associated with the credit facility.



Production and Prices Received

For the nine-month period ended September 30, 2010, Sefton produced approximately 41,000 barrels of oil, as compared to 46,000 barrels of oil in the 2009 comparable reporting period. The average oil price realization for the 2010 nine-month period improved to $70.36 per barrel, a 49% increase when compared to the $47.33 per barrel received in the 2009 period. Sefton's production base comprises 100% crude oil.



During the nine-month period of 2010, Sefton's total capital expenditure for development and exploration of its leasehold was $939,000, as compared to $2.3 million in 2009, when the Company drilled three new wells and added additional infrastructure associated with its cyclic steaming program. During the 2010 period, the Company drilled no new wells, but instead focused its capital investment on cyclic steaming of existing wells.





Operations Update

Tapia Field, East Ventura Basin, Calif.

Sefton completed its initial cyclic steaming pilot program with the return to production of the Hartje #11 well in early June 2010. Since that time, Sefton has profitably operated Tapia Field with a minimal amount of capital expenditures. The Company has focused on routine maintenance such as pump changes and water disposal facilities improvements.



Workover opportunities exist as a cost-effective way to deliver incremental oil production and cash flow. Currently, the Yule#9, a one-time Saugus Formation gas well, is being converted to an oil well which should show improvement in oil production once online. Estimated workover expense for the well is approximately $180,000. Company technical staff believes an oil rate increase of about 20 barrels of oil per day (BOPD) can be achieved. At current oil prices, the payout on the invested capital for this type of workover is less than six months.



The Company has identified workovers on three additional Hartje lease wells. Estimated per-well costs are $115,000 for easily implemented liner replacements with an expected per-well incremental production improvement of 5 BOPD to 10 BOPD. At current oil prices, the payout on the invested capital for this type of workover is less than 12 months.



Sefton continues to monitor the post steam injection response of the Hartje #11 and #13 wells. The wells received twice the amount of injected steam, when compare to earlier cyclic steam injections. The small steam injection volumes of approximately 6,000 barrels of steam resulted in wells returning to their baseline oil production rates after three to four months of production. After producing for five and seven months respectively after receiving the steam injection, both the Hartje #11 and the Hartje #13 wells are producing at rates above their baseline rates. During October, Hartje #11 produced at approximately five-times its baseline rate and Hartje#13 at two-times its baseline rate. The Company is very encouraged by the results.



Steamflood Pilot

Sefton is awaiting review, comment and approval of its previously announced steamflood pilot project on the Hartje lease. Sefton submitted a detailed engineering study to the State of California Division of Oil Gas and Geothermal Resources (DOGGR) which proposes a short-term, six-month steam flood injection study on the Hartje lease. The project is now in the final phase of the approval process. Once approved, the project can be finalized and formally permitted by the DOGGR. Upon approval, Sefton plans to convert the shut-in Hartje #10 well to a dedicated steam injector. Minimal capital expenditures are expected in order to replace liners and to perform other modifications to ready the well for steam injection. Sefton has existing steaming facilities in place to operate the injection from this location, including gas fuel and steam water supply lines and steam injection piping. Once injection begins, improved oil production response is expected from six wells offsetting the Hartje #10 injector well.



As previously announced, Sefton recently retained Dr. Farouq Ali, an expert in steamflood design, and president of Edmonton, Alberta-based HOR-Heavy Oil Recovery Technologies Ltd. Dr. Ali has supplied an initial technical review for possible implementation of a steamflood at Tapia as well as the evaluation of the primary oil recovery and the cyclic steam pilot thus far. The initial report outlines a number of steamflood sensitivity runs that model different well spacing, geologic and engineering parameters for the Tapia oilfield. Dr. Ali continues to evaluate the project and has indicated that he expects to provide additional geologic and engineering data specific to the Tapia reservoir.



The initial report and modeling supports the reservoir engineering work by Sefton's reserves engineer, Reed Ferrill & Associates. Sefton's proven, probable and possible reserves indicate total recoverable quantities for the field in the range of 51% to 78% of the original oil in place (OOIP). Given that the OOIP for Tapia is greater than 11 million barrels of oil and the primary production to date is less than 2 million barrels, Sefton believes that there is a significant amount of oil yet to be recovered by utilizing thermal recovery methods.



MidContinent

During the first nine months of 2010, the Company continued its work on select midstream infrastructure acquisitions. The Company is also in discussions with oil and gas operators in the eastern Kansas region who are seeking to utilize capacity on Sefton's Vanguard pipeline asset once it is reactivated.



In Leavenworth County, Kansas, the four-segment Vanguard Pipeline is undergoing an initial reactivation process. The Company estimates that it will have the full system operational by January 2011. In total, once the reactivation is completed, the Vanguard Pipeline will have in service eight miles of 8-inch pipeline, 6.5 miles of 6-inch pipeline, 11 miles of 4-inch pipeline and three miles of 3-inch pipeline that is capable of moving between 6 to 10 million cubic feet of natural gas per day and can also transport third-party gas. Placing the Vanguard Pipeline in service by January 2011 is subject to weather conditions and possible mechanical issues involved in pipeline testing procedures, which could potentially delay the in-service date.



Management Comment

"We are pleased to report a strong nine-month period driven by strong oil prices and complemented by achieving our expected production levels," said Sefton's CEO John James Ellerton. "Our California operations continue to operate at a profit, as we move forward with our steamflood pilot. Our California field staff is to be commended for their continued efforts in running a lean operation for Sefton and its shareholders. The six-well steam pilot program is an important step in improving the recovery of oil in place at Tapia. We look forward to beginning the program once we have received approval from the State. The modest investment in the pilot program could have positive implications for the remainder of Tapia, assuming a successful response. Dr. Ali's early evaluation of Tapia is also encouraging. It is too early to provide the final results, but we believe they corroborate our view of the field and the recoverable oil that can generate future growth for Sefton and its shareholders."

[yangou] 18/11/2010 22:05

19.11.2010
Source: ESBC Research and Analyses


Big BOC Bang ahead?



Since Bougainville's President, John Momis recently made an announcement of a strong Chinese interest to buy out Bougainville Copper; the BOC share prices shot up dramatically. This reminds us of the failed attempt of the BCL takeover by American Pritzker group during the civil war in 1991. Pritzker offered then a reported price of 3.75 USD per stock. Gold prices were about 350 USD per ounce as well as 80 percent lower for copper at the time. Also silver was much lower in 1991.
The Pritzker offer was rejected at the time by Rio Tinto with the furious words, ''we do not give away our crown jewels!''. Compared to today's market prices the equivalent virtual bid should be round about USD 20 per share. Therefore, any offer that might lure Rio Tinto has to be at 30 USD per stock or maybe even higher. That makes BCL an enterprise valued at 12 billion USD. However, it is still the fact that the mine only needs to start running and needs not to be opened completely once again. Besides, it might give rise to lure seven rich mining licenses more. As China disposes more US dollars than economically reasonable, the takeover could turn out to be a good possibility to get hard base and precious metals for some soft printed green paper.

[yangou] 18/11/2010 16:14

19.11.2010
Source: The Australian with WALL STREET JOURNAL


'Bogeys' running red hot



AND talking of hot mining stocks, Bougainville Copper shares have run up 29c or 20 per cent from $1.39 to $1.68 in the last two trading days. This is a company whose operations closed down 21 years ago in 1989 during a civil insurrection and whose controller Rio Tinto's chairman Paul Skinner made it clear at the May AGM that there were "no plans" to reopen the Panguna mine.

Rio owns 54 per cent of "Bogeys" and the PNG government, not universally adored on Bougainville, has another 19 per cent. There are however two other influences to consider. One is of course the burgeoning copper and gold prices and the other is the possibility that some resource-starved overseas (most particularly Chinese) player may take a different perspective on the risks involved.

There's a total resource there of 3.5 million tonnes of copper and 12.7 million ounces of gold. That said, there are reportedly six separate landowner associations that will need to be brought to common agreement before anyone starts spending the $US3-$US4bn required to get the mine back into production. The biggest passive shareholder we could track down was index-hugger Vanguard with 2 million shares or five per cent. They're clearly betting that one day it will be back in the major indices.

[yangou] 18/11/2010 09:59

oiler AEX starting to look interesting again. I bought back in just over a week ago.
I also have Bouganville copper shares which are starting to make another move with the meeting on friday coming up to decide the future of the mine. Can read about it on www.bougainville-copper.eu A lot further to go if it is opened again which is likely. But you may feel it is too late to jump on board. The mine has been closed for twenty years and Rio Tinto own over half.

[mingle3] 16/11/2010 17:55

cheers katie
____________________________________________

Tadtech - 16 Nov'10 - 09:54 - 2752 of 2790


The FACT is that is this is the most lowly valued PROFITABLE O&G company on the AIM.

Where else is there a company generating $370k a month, cash flow positive, 3m barrels booked reserves, stable production circa 150 bopd, on target for EBITDA of $1.5m and a net profit of $700k......Valued at £2m?

Further they are about to embark on a process that could increased revenues by circa 40%/50%

The very minimum this should be trading at is 4p on those numbers, offering a £5m market cap.

[katie priceless] 16/11/2010 17:41

Have a look at PAL under valued oil stock [ Palm ]

[mingle3] 16/11/2010 17:07

Guys take a look ar SER- Sefton Resources

Currently they have two gas and two oil production wells in USA producing 150-190Bopd
Last years production was 58'000boe
3.56mmboe proven reserves
130 Million shares in issue
Cash flow positive and they made a profit even with oil at $42
Currently undergoing steam flooding to increase prodution

Market cap £1.3Mill

[cyprussteve] 12/11/2010 13:56

At the current price they have a market cap of £7m. Yesterday they sold their stake in KAH for £5.6m and when added to their existing cash covers the entire market price. In other words there is nothing priced in for any of their projects which could be huge.
It looks greatly undervalued to me .
Ciao
Steve

[cyprussteve] 10/11/2010 06:48

I feel both NRRP and WTI are significantly undervalued - and, which I believe offer significant upside over the next 12 months.
Both are "high risk - high benefit" - but, may be worth taking a look at and doing some research for those who are interested.
Ciao
Steve

[chickenchowmein] 05/11/2010 11:05

FYI

AEN breaking out

[vivgav] 03/11/2010 12:58

just got some more AAU @ 3.35p :-) A damn good shake by mmm's today

Director bought at 4p last week

[vivgav] 03/11/2010 11:31

FD. AAU....a good entry point imo..........3.54p offer!

[vivgav] 03/11/2010 10:51

FD Have you looked into AME?

Listed on Monday 01/11/2010.Good article in Shares mag last week with a BUY rating. Said the directors were worth backing etc.

[oil_andy] 03/11/2010 09:08

CAZA consolidating nicely in low 40's and has a stack of newsflow coming this month

[fairdeal2008] 03/11/2010 08:50

Oh goodness me yes - very heavily - just holding and watching...

[vivgav] 03/11/2010 08:48

No longer in AAU then?

[fairdeal2008] 03/11/2010 08:48

No - between you and me its THR - am buying in 250k chunks but please keep it quiet now ;-) ... havent yet changed the header

[vivgav] 03/11/2010 08:46

FD Is AAU still your no1 focus?