SEFTON RESOURCES INC 
By
Sefton Resources, Inc. (AIM: SER), the independent oil
and gas exploitation and production company with interests in
California and Kansas announces two key appointments.
- Tom Milne appointed Non-Executive Director
- Larry Culbertson appointed Kansas Operations Manager
- Issue of 1.5 million share options exercisable at 3.5p
- Fox-Davies Capital visited the operation in late-July and plans to initiate equity research coverage
Jim Ellerton commented that "Sefton has been looking to add further Non-Executive Directors and welcomes Tom Milne to the board who brings a strong finance background within the oil industry both in North America and internationally. At the same time the company has appointed Larry Culbertson as the Manager of Operations in Kansas, who brings over 25 years of Kansas operating expertise to Sefton.
Certainly the coming months are expected to be a busy period for Sefton with major developments taking place in our California and Kansas operations. We plan to have our assets revalued with Competent Persons Reports following these developments to demonstrate the additional value that has been created. We reiterate our goals of increasing production and increasing reserves as part of turning the value that has been created into cash flow."
For further information please visit www.seftonresources.com or contact:
Sefton Resources, Inc. |
|
Fox-Davies Capital Limited | Tel: 020 3463 5010 |
Dowgate Capital Stockbrokers (joint broker) | Tel: 01293 517 744 |
Cadogan PR | Tel: 07771 713 608 |
Appointments
At the first Board meeting since the Annual General Meeting, Tom Milne was appointed a Non-Executive Director and Larry Culbertson has been appointed Kansas Operations Manager.
Tom Milne
Thomas (Tom) George Milne (aged 65) is a senior financial and
management executive with extensive international experience
in energy E&P, Pipelines, Oilsands and Communications
Technology. Career roles include Chief Financial Officer,
Treasurer, Investment Banker, Senior Partner (CA firm) and
Foreign Exchange Trader. He has been a Director of both
Public and Private companies including Chairman of the Audit
Committee for an AMEX-listed Oilsands company. He is
currently the Chairman and a Director of Precise Details Inc
(a family owned company) and is also a Director of TSX-listed
Hillcrest Resources Ltd and Canshale Corp (a private
company).
In the last five years, Tom has also been a Director of Newton Energy Corp, Newton Energy UK Ltd, Norfolk Resources UK Limited, Enhanced Oil Resources Inc, Added Capital Corp, and Oilsands Quest Inc.
There is no further information required to be disclosed in respect of the above appointment pursuant to Schedule Two paragraph (g) of the AIM Rules.
Larry Culbertson
Larry joins Sefton as Kansas Operations Manager. He has more
than 25 years' experience in the oil and gas business ranging
from building pipelines, drilling wells, acquiring mineral
leases to overseeing/managing a large number of operations
personnel. When the LAGGS pipeline was originally
constructed, Larry was involved in procuring 90% of all
easements and he supervised the building of over 40 miles of
its gas gathering system. Larry is a native of Kansas which
has and will continue to benefit Sefton, particularly as the
oil and gas production and pipeline operations expand.
Recently Sefton's lead broker Fox-Davies Capital completed a
site visit to the Company's operations in California and
Kansas. Fox-Davies intends to initiate research coverage on
Sefton in September once the interim results have been
announced.
On finalising the £15 million EFF with Darwin Strategic
Limited, Sefton agreed to grant Darwin 3.5 million share
options which are exercisable at 3.25p over 3 years which has
already been announced. Sefton has also agreed to grant
Fox-Davies Capital1.5 million share options with the same
terms and conditions.
Sefton Resources is an AIM-listed oil and gas exploration and production company with tremendous scope to grow within its 100%-owned and operated assets in the US. The business strategy is to acquire long life, controlling interests, partially developed reserves and add value using its own funds and then maximise shareholder value through asset development involving third party capital, farm-out or merger. Currently the Company has a market capitalisation of approximately £10 million even though independent experts have calculated a Present Value (discounted 10%) of $278 million (approximately £173 million) for the assets (as at 31.12.11). The board is in the midst of turning this created value into profits by accelerating the development of the assets within its three subsidiaries.
Oil in California - In East Ventura, the Company owns 100% of two oil fields, Tapia Canyon (heavy gravity oil) and Eureka Canyon (medium gravity oil). Estimated 2011 year-end proved reserves stood at 3.8 million barrels. The near term focus is on Tapia Canyon where Sefton drilled additional wells in 4Q 2011, to increase production and also continue the use of steam to improve recovery and reserves. The Company has engaged Dr Farouq Ali to advise on a full steam flood development of the Tapia field and the report is expected shortly.
Pipeline systems in Kansas - Three pipelines have been acquired. The two pipelines in Leavenworth County have been refurbished and are in the process of being connected to the Southern Star Interstate Pipeline system that will allow the Company to flow gas in due course. Following the completion of the Southern Star interconnect, the priority will be joining the LAGGS and the Vanguard pipelines thereby increasing equity and third party gas into the system. The third pipeline (Waverley) is in Anderson County where the plan is to test, fix and certify this pipeline ahead of negotiating contracts to connect to an interstate system once the LAGGS/Vanguard system is fully operational. This move is expected to provide additional redevelopment of oil, equity and third party gas opportunities.
Oil & Gas in Kansas - In East Kansas, Sefton has over 45,000 acres in the Forest City Basin, where conventional oil and gas deposits have been targeted. The near-term focus for a planned well recompletion programme will principally see oil wells brought back into production with the objective of accelerating oil revenue while gas production will be processed through the LAGGS-Vanguard pipeline system as additional gas wells are accumulated. The leasing programme is also being accelerated with the plan to double the Company's acreage holdings in Kansas.
|
distributed by
|
