Sefton Resources Share Discussion Threads

[peteark] 30/1/2008 12:11

It has taken a few years but at last some reasonable posts, informative and not blatant ramps or deramps.

[murrayteller] 30/1/2008 11:32

Iain, well said. Now is certainly the time to add. And even though I can't see Sefton getting the CBM going, it will one day be the reason this little tiddler gets taken over

[iain g] 30/1/2008 11:16

Hello all bit of a none event today,

shame the bid didnt creep down to 4p, I shall have to be content with 5p buys,

News in the next couple of weeks

in interesting quote from Shells Cheif exec j van deer Veer's prophecy that world demand for oil & gas will outstrip the available supply within 7 years

now let me thing what is it Sefton is doing , oh yes producing oil .drilling for more proven oil & developing cbm gas extraction ! LOVELY

< supply v > demand = An extremely good future for Sefton

I was hoping the seasoned veggy would have retired by now ! still the next best thing is to filter the fool

[markinthepark] 30/1/2008 11:15

I see the bid is up a tad today.....btw, have we always had 7 MMs here?

[markinthepark] 30/1/2008 10:40

Thanks for the positive feedback......after 2 years of holding this things do get a bit depressing when you watch others fly and you still sitting on losses that would be even more depressing if you crystalise them.....I guess if anything I've learnt not to go large on small fries in the future as they do not reward 2 years of patience but rather can enrich short termers who might be buying in and doubling their money in a matter of weeks or months.......or the likes of yarso who can manipulate these small caps at will to profit from a falling share price......

[investorjon] 30/1/2008 10:35

Mark. You'll find similar on any bb. Ultimately its about patience and progress. share price can fluctuate wildly even with the same fundamentals on AIM. Whilst some may be growing weary, they will inevitably lower their targets, but not necessarily a wise move, as increases in the share price due to fundamentals may be just the signal for others to buy in creating a higher share price platform for the future.

Patience is still the key, and whilst I note the comments on Directors, there is little difference between the directors of Sefton than others encountered on AIM. You can see similar comments fired at many a Board.

Many a time you see a company start to come good, with those patient PI's then selling out into a rise that continues, often leaving previous critics picking up shares when problems are in the main resolved.

[deanroberthunt] 30/1/2008 10:01

Mark...chill out, if Sefton can show a reasonable profit for 2007, that will provide some impetus....with the likelihood of 6-7 wells in 2008, sales and profitability should significantly improve....the recent banking shenanigans and market turmoil has left a bitter taste, so most will plump for defensive stocks and/or mid-large caps paying heavy divis.....mainly resource stocks imo.

Imo if you can afford to give her till Xmas 2008, then that would be my advice...the imminent results will provide a clearer picture of whether or not the management can control costs in the wake of an extensive drilling programme. Indeed, they have underperformed for far too long, but I believe this very moment could be the inflexion point of the J-Curve...

I expect nothing startling, I expect nothing from steaming this year, except maybe for completion of pilot programme..one must remember, its a tiddler with limited resources, things take longer, they will make more mistakes, so its a speculative buy.....however, they are a reasonably robust producer, which will strengthen over 2008, so the downside is limited from here...there's much stronger companies that have been hit worse, remember that also...

Commencement of the 3-4 well drilling programme should be announced shorthly, that will provide some uplift as it did previously.

Ultimately its up to you, if you've had enough.....still, forget about Sefton for the time being, she'll come back to you in 6 months, until then stick to the pic n mix thread, that should bring back the smile.

rgs

[peteark] 30/1/2008 09:57

I think in 3 to 5 years we may see 15 - 20p

Sefton have already produced good news by the bucketful or news that appears good, So why don't we see any buyers?

Continual poor results, continually running at a loss, poor management, dire PR, loan repayments, rising costs within the oil services sector, MM games. Of course it would be hard to pinpoint the exact reason.

One year ago the bulls screamed wait until the finance arrives, then it was the steamer, then drilling, what happened? no buyers and the prices drops. Being bullish is one thing and we all hope the share price rises but some people word their posts in a manner that they appear an authority, when the truth is we are all locked in and hope rather than know for a fact the share price will rise.

[markinthepark] 30/1/2008 09:56

Morning guys,

As I said, whilst you may not be stale, and I would never seek to question your personal fragrances, it is the same old faces here every day after all...where's the new blood?

There seems to be hardly any interest in the shares despite them being so "cheap" to buy now.....and Hardman's coverage (does anyone actually read it except us I wonder) and all the positive news from the company.......

Anyone got a view on whether or not we will get a trading update like we have seen in the past at the end of January or was that Operation Update it?

[relishing] 30/1/2008 09:43

Oh well, another month, another $300k profit into the coffers.

[mickey take] 30/1/2008 09:41

Two showers a day helps!

[bobbyg2] 30/1/2008 09:34

Morning all

I'm still a pretty fresh Bull - regular showering and treating anything yas0 says as garbage helps mark :)

[markinthepark] 30/1/2008 09:29

Is that it then? Looks like Yarso & Co have finally killed off any interest in these shares whatsoever...just a few diehard stale bulls (like me) left here to mind the shop now that Mms have dragged the share price back to 2 years ago....no buyers out there now and without some stocking news it's unlikely there will be...any future short term price spikes (and they are always short term here) on more Hardman waffle etc will be most likely be used by a few (inc me) to claw back some cash to use elsewhere......yes I am well truly fed up to back teeth with this now......here's hoping the next news gives the share price a 100% lift.......

[redhill] 30/1/2008 07:30

Except one glaring error above.THEY ARE PROFITABLE!

[yas0] 29/1/2008 23:12

Dear New readers,

I remind you of a comment from John Clark, of Ernst and Young, in relation to oil tiddlers. When asked by a reporter which tiddlers one ought to consider backing he replied 'those with good management, since otherwise the oil, if there is any, stays in the ground'.

The gracious fellow oft repeated a similar theme last year. He reiterated that when tucking into a tiddler 'always buy the management'.

Readers can draw their own conclusions about the management team at Sefton. However, mickey take was not sitting on the fence today when he stated that he was extremely disenchanted with the current board and what they had delivered to date. In faxt, he went so far as to state that unless there are changes at the helm, Sefton would go nowhere. A scathing attack you might think. Then one you realise this comes from a long term bull, it does make you cautious.

I ask readers to read the RNS items from the last year or two - then compare them to the current state of affairs. Make your own mind up as to whether or not the expectations stated have been met.

My own view is that Sefton needs to drill several new wells, and urgently so. Unless it does so I cannot see it becoming profitable in the near term. Readers ought to note Sefton has drawn down 1.5mln of a debt facility. Companies that are saddled with debt need to generate sufficient cashflow to make good such debt commitments.

Unless they can acheive this, it usually is 'game over'.

[redhill] 29/1/2008 19:21

rel

The kind of stock where pi's are queuing to buy as the idiot suggests.In my experience most AIM stocks move on news or expectation of news and drift back in between.The trick is to maintain more of the rise than the fall back but as we are continually battling against the Market Makers its a fine line.

[broad] 29/1/2008 19:08

was that yas0 closely typed report

[broad] 29/1/2008 19:08

was that yas0 closely typed report

[broad] 29/1/2008 19:08

was that yas0 closely typed report

[yas0] 29/1/2008 18:34

Mickey take suggested that the CBM leases ought to be sold on. His view was based on the fact that Sefton have yet to come up with a jv partner or any concrete plans to advance cbm. He has a point. After failing to demonstrate a full year net profit to dte, investors may have thought a year or two ago that the prospect of cbm may have served to prop up the price. But all we have been told for some considerable time now is that discussions with a jv partner are ongoing. Hardly inspiring.

The leases did not cost a substantial amount, but one would have thought that they would get less for them now as a distressed seller as morris suggests. Moreover, the leases were set to expire in 5 years at the time of purchase, and thus wioth a year or so having passed, would likely be worth significantly less now.

dyor.

[yas0] 29/1/2008 18:16

lol. Good post by rel. Just the kind that ensures that new readers shall avoid researching the stock since it has the hallmarks of a ramper.

Ask yourself this - if you went onto a thread and noted a post like the above, would you really bother carrying on? No, thought not.

Keep it up relsihing.

[relishing] 29/1/2008 18:08

With Production On The Up, Sefton Resources Gets Ready For New Drilling And Steam Pilot Test On The Tapia Heavy Oil Field


The oil industry is used to operating in the most hazardous conditions: think the iceberg-littered waters off the coast of Newfoundland, the gale-swept waters of the West of Shetlands or the enduring perma-frost of oil-rich Alaska. Yet even apparently benign environments can pose challenges as California-based producer Sefton Resources can testify.

The heavy oil specialist has had more than its fair share of difficulties over the seven years since its IPO on London's Alternative Investment Market. In 2002 the company's Tapia Canyon project, some 40 miles north of LA, was hit by a devastating well blow out. The following year, work was hit by the bush fires that swept California. Drilling was suspended in early 2005 when torrential rains hit the region and the final quarter of 2007 again saw the return of devastating fires.

Add to that the industry-wide equipment shortages and cash constraints that have delayed work across AIM's E&P sector, not to mention a long-running law suit (finally settled at no cost in 2006), and it is little wonder Sefton finds itself way off the production targets it was gunning for in late 2004. The AIM company was hoping for output of 800 barrels per day from Tapia Canyon and 150 bpd from its medium gravity Eureka Canyon oilfield by the end of 2005 but over the first half of 2007 production from both fields was limping along at 130 bpd.

The final months of 2007, however, saw real progress. Having secured a vital US$10 million credit facility from the Bank of the West, the company completed two new wells on Tapia Canyon, Hartje-16 and Hartje-17, which helped lift December's average output to 193 bpd. The wells, drilled in the east-central portion of the field and completed in the Yule oil sand, have stabilized at a combined rate of around 80 bpd, fairly typical for the heavy oilfield. Sefton plans to follow-up this success with a three-to-four well programme, with the first well due to spud in February. Given today's high oil prices, Sefton has every incentive to chase down the remaining reserve base of a field that was discovered back in 1957 when the Yule-2 well flowed 120 bpd of 18 degree API oil.

The company has long planned to use steam-assisted technology to improve recovery using gas held in the field's shallower formations to flush out the heavy oil. 2008 should see those plans become reality as a steam pilot test gets underway on the Yule-7 and Yule-10 wells. The company had planned to use the Yule-8 gas well, which tested at 1.1 million cubic feet of gas back in January 2004, as a fuel for the steam test but fluid has collected in the wellbore over the past four years. Sefton now plans to use propane gas so it can proceed with the pilot without spending time and money on well repairs and the construction of a gas supply line.

Chairman Jeremy Delmar-Morgan said the use of propane gas will enable the company to "quickly attain the data to determine the most effective way of increasing production from existing and future wells". With oil prices north of US$90, any additional barrels will make a real impact on cash flows and there are hopes steam-assisted recovery will double production rates (a "huff and puff" test by a previous operator on the Yule-5 well saw production increase from 10 bpd to 30 bpd). According to analysts at Hardman & Co, peak production at Tapia should ramp up to 150,000 barrels per year by 2009 through conventional drilling with significant upside if the steam-enhanced recovery programme proves viable.

The company's Eureka Canyon field (Sefton owns 100 per cent of both fields) lies about 20 miles west of Tapia. The medium-gravity field has a longstanding pedigree, having been discovered in 1893 and producing ever since. Last year a reconnaissance survey was completed and an infill exploratory geochemical survey is planned for 2008.

The AIM firm has diversified into the gas business, having established a 43,000 acre footprint in the Forest City Basin in Kansas, thought to be highly prospective for unconventional gas resources. According to the analysts at Hardman, "it looks like Sefton has acreage over the thickest sections of the Bevier and Riverton coal deposits". Progress in 2007 was described as "cautious" in response to the varied results achieved by other operators in the area. The "wealth of geological knowledge" gleaned by other operators will "serve to smooth Sefton's path towards optimising future production," said the analysts.

There are plans for a pilot drilling programme later this year but for now the real focus lies in California, where very real steps up in production, and thus cash flows, are on the books for 2008.

[relishing] 29/1/2008 18:02

It's not what type of stock?