Sefton Resources Share Discussion Threads

[mickey take] 08/2/2008 12:22

Oh to hell with it.. Here it is.....

It is my belief that sefton had intended and guaranteed to the bank to complete and carry out the steaming along side the first drilling campaign.

However they screwed up big style.....

The first of those errors was the failure to carry flow testing from the gas well intended for use, and this impacted big time.

This presented them with a dilemma since to run on propane they will require further capex in addition they will also require further expenditure to run on their own gas.

this in my view will amount to but not limited to the following..

Additional separation equipment.
Booster Pumps
Extension to Electrical distribution equipment.

This then put them in a difficult position since to achieve all of the above would have put a strain on both their repayments and put them in a tenuous position in maintaining output

The bank will have told them that no release of funds would be granted for steaming until they could increase production.

Hence that's why we have the change in direction interms of the drilling
Which the bank will support but only in a small way in terms of funds ie as union rightly points out a smaller draw down.

Only when they prove up further out put will the bank release funds to develop the steaming and further development.

There have been various unofficial reports regarding the steamer from the company..missing parts etc.

These imo where an attempt to think up a good enough reason for the extended delay.

CJ – The steamer will be fitted with metering equipment, which measures and monitors the emissions.
during commissioning this would have been one of the checks that would have needed to be carried out to satisfy the California air quality controls these figures would be documented at that time,

the application for the licence takes place well before that time.
If the results prove satisfactory the unit is permitted to run almost immediately.

[fernygrade] 08/2/2008 12:18

YASO try some Cornish Yarg that has seaweed!!

[yas0] 08/2/2008 12:12

Minerman,

Can we ensure that discussion remains focused on ser - new readers attending the thread do not need to be distracted when reviewing Sefton.

[california joe] 08/2/2008 11:54

MickeyTake seen sunbathing on Miami Beach!



Photograph by Yas0

[yas0] 08/2/2008 11:51

minerman,

I should not respond to you, but then I note you are having a bad day at ASG - hence I shall take pity.

Main highlights for me -

a) 4 wells scheduled for Quarter 1 - that is fairly aggressive and shows that they are getting their act together.

b) Cashflow to be improved considerably as a result - remember folks, cashflow is king for companies that have taken on debt, not necessarily profit to begin with at least.

c) Do not be disheartened by the delay in steaming - it can be considered a bonus.


With good control of costs, and use of cashflow in part to develop further wells, this appears to have put in a short term floor on the price. Remeber folks, oilers generally go up in anticipation of drilling. For the first time Sefton have announced a drilling campaign with dates, number of wells and cashflow considerations.
This merits a change of stance

[california joe] 08/2/2008 11:47

Yas0, what's your take on the RNS? Please elaborate!

[yas0] 08/2/2008 11:46

Morris,

I do not answer your requests - you have violated rule 5 and are a numpty.

I told you last time not to seek advice from the gracious fellow, since I do not respond to seaweed.

Should anyone else wish to know about the RNS then just ask.

[california joe] 08/2/2008 11:42

Interestingly, granting of the air quality permit can take from 1-4 months, here's a link to the info:

[california joe] 08/2/2008 11:33

Mickey, because it was?

[unionhall] 08/2/2008 11:32

Mt - just for clarity - they did not say they would not require further draw-down. They said -


"without substantially increasing its debt"

ie they anticipate some, but not a lot, of further draw-down.

[mickey take] 08/2/2008 11:32

Yas0- Would you like to elaborate on how you consider the RNS good?

[mickey take] 08/2/2008 11:29

Dean- I will hold off for now,

CJ – It's a good thing you didn't use Baltimore Joe lol
Nope don't do closely tight reports, always have plenty of slack in my garments

[yas0] 08/2/2008 11:24

Go Sefton Go!!

Months of ramping from the Seftoners and no response - the gracious fellow then tells them we have had a reasonable update (indeed it was), and the share price takes off.

The gracious fellow does it again.

Meanwhile ASG looks like another one of matador's calls going to the wall...oh dear.

[california joe] 08/2/2008 11:19

Mickey will it be a 19 page closely typed report?

Moonshine, I didn't get where I am today by reading 19 page closely typed reports you know!

[deanroberthunt] 08/2/2008 11:14

Mickey...I'd prefer you got it off your chest now, so we can have a debate...I respect your views both bullish and bearish..

I await your comments.

[mickey take] 08/2/2008 11:12

I will give them two weeks – if we don't hear anything on progress on the permit by then i will publish my complete take on the whole matter including the change of direction to drilling as a priority together with their latest comment on not requiring further draw down

Sound a bit like Yas0 their lol

[deanroberthunt] 08/2/2008 11:11

different trading system...SETSMM vs MM

anyway we're digressing.

[markinthepark] 08/2/2008 11:10

drh,

they don't do it with WLW, so why here?

[moonshine1] 08/2/2008 11:09

Exactly CJ, hmmm, have you seen Reggie recently?

[deanroberthunt] 08/2/2008 11:09

cos thats the spread with all the MMs, don't worry about it.

[markinthepark] 08/2/2008 11:08

If the real prices here are 5.6 bid and 6.0 ask why don't Mms show that instead of 5.25-6.25 which makes the spread look horrible.....

[california joe] 08/2/2008 11:07

If getting the permit is a formality, it may be a very short wait to here steam testing has started!