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psonice
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Joined: 05-Jan-07
Location: England
Posts: 53
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| Posted: 25-Jan-07 at 13:52 | IP Logged
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Seems there's no Sefton Resources thread, so I'll start one!
It's a small Oil + Gas producer, based in the USA but trading on AIM, currently producing approx. 145 bopd from 2 fields in California. They're profitable, and have upgraded facilities and commissioned a steam generator ready for SAGD and further drilling later this year, which should provide significant upside to production (perhaps to 5-600 bopd total). Current market cap is around £5.5m.
They also have permits to drill 5 more wells, with preliminary approval for 3 more, plus a possible further well (they were planning 9). This has been awaited for some time, and is subject to them securing finance and a rig, but it seems from their trading statement today that the rig is now available, and finance should be sorted once the permits are finalised.
The other big interest is coal bed methane (CBM). They have 30,000 acres in Kansas, with thick coal seams, next door to Petrol who are producing CBM already. No development has been done to date, but it seems that they are in discussions on a joint venture (likely with Petrol), and have been in discussions with pipeline operators (Petrol have their own pipelines I believe, so the discussions may be one and the same, but that's a guess).
A valuation by Hardman last year (see here: http://www.hardmanandco.com/Research/Sefton_June_2006.pdf) valued them at ~51p per share (there was a 15:1 consolidation last year), without including CBM at all. They also said that CBM may be worth more than the oil eventually. Note that the Hardman report was based on the company drilling further wells, which has yet to happen, so this valuation could be taken as a 2007 forecast if the drilling goes ahead this year.
Downsides?
They've been hit by fires and floods in the past, and nearly went out of business but were saved by a massive placing. Since then they've recovered well and are profitable, but the number of cheap shares in the market killed off the rise after the hardman report was published last year. This has hopefully resolved itself by now, but it's impossible to tell for sure.
Investor relations has been poor. The website hasn't been updated for ages, and there's been very little in the way of news flow. To be fair, they have been bitten by promising things in the past that they failed to deliver due to things outside of their control, and are probably unwilling to announce anything until it's actually happened, and they have been working away on equipment upgrades etc. in the background. There have been a few changes on the board lately too, and hopefully things will improve.
A few links:
Company website - http://www.seftonresources.com/
Hardman report - http://www.hardmanandco.com/Research/Sefton_June_2006.pdf
For a better list, check the list in the header in the thread at ADVFN - http://www.advfn.com/cmn/fbb/thread.php3?id=11744963
Edited by psonice on 25-Jan-07 at 13:54
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english bigball
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Joined: 19-May-05
Location: United Kingdom
Posts: 103
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| Posted: 25-Jan-07 at 13:57 | IP Logged
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Good work psonice.
About time we had a new thread anyway.
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psonice
Regular Contributor
Joined: 05-Jan-07
Location: England
Posts: 53
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| Posted: 25-Jan-07 at 14:06 | IP Logged
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LOL! Just seen the old thread! Arse... I did search for sefton and ser.. must have misspelt sefton perhaps?
Never mind... refer to the old thread for more info!
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NabCom
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Joined: 08-Dec-06
Posts: 79
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| Posted: 30-Jan-07 at 19:57 | IP Logged
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Sefton on Oilbarrel
30.01.2007
Sefton Resources Weighing Up Its Options To Progress US Field
Developments
http://www.oilbarrel.com/news/article.html?body=1&key=oilbar rel_en:
1170122429&feed=oilbarrel_en
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Happy Moose
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Joined: 03-Jul-06
Posts: 26
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| Posted: 31-Jan-07 at 18:37 | IP Logged
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Thanks for the update
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english bigball
Bronze Contributor
Joined: 19-May-05
Location: United Kingdom
Posts: 103
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| Posted: 19-Mar-07 at 16:18 | IP Logged
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This has gone VERY quiet...
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english bigball
Bronze Contributor
Joined: 19-May-05
Location: United Kingdom
Posts: 103
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| Posted: 19-Mar-07 at 22:32 | IP Logged
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Interested in current views.
Has this been "put in the bottom drawer" by most?
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NabCom
Regular Contributor
Joined: 08-Dec-06
Posts: 79
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| Posted: 20-Mar-07 at 00:36 | IP Logged
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Hi EB
Very busy at work Q1 so not been able to keep up with everything as much
as usual.
I was worried things might start happening while my back was turned but
glean from ADVFN that things will probably start to develop mid April
onwards which suits me fine.
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Fillyaboots Forums : General Trading
Topic: Sefton Resources (SER)
