Sefton Resources, Inc is an AIM-listed oil and gas exploration and production company. Its main area of activities are the East Ventura Basin of California, where it owns 100% of two oil fields, Tapia Canyon (heavy gravity oil) and Eureka Canyon (medium gravity oil), and East Kansas with over 45,000 acres in the Forest City Basin, where coalbed methane, as well as conventional oil and gas deposits are targets. Strategy is to acquire controlling interest over long-life partially-developed reserves and add value through asset development initially using our own funds and then involving third party capital.
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Sefton Resources, Inc., a British Virgin Island corporation, is in the business of oil and gas production through wholly owned subsidiaries TEG Oil & Gas USA Inc. and TEG MidContinent Inc. Administrative offices are in Denver, Colorado. The company trades only on the London Stock Exchange AIM Market. The trading symbol is SER. The initial public offering occurred on December 8, 2000.
The near term tactical objective is to:
“Build a strong stable platform of assets, generating sufficient cash flow to operate and grow the businesss.”
Main core area of activity is the East Ventura Basin in California, in which Sefton owns 100% of two oil fields; Tapia Canyon (heavy oil) and Eureka Canyon (medium gravity oil), both of which have over twenty years of expected production life. In addition, Sefton has over 30,000 acres in the Forest City Basin of Eastern Kansas producing Coal Bed Methane gas, as well as having conventional oil and gas deposits.
Residing in the USA and forming the management of the company is the Chairman of the Board, Jim Ellerton, a geologist with 30 years of experience with both large and small companies, Harry Barnum, a geologist with over 20 years of experience in oil and gas, and Karl Arleth, President and CEO of Sefton Resources, who joined Sefton with over 30 years of domestic and international oil and gas experience.
East Ventura Basin - California
The Tapia Canyon field covers an area of approximately 280 acres located about 40 miles north of the Los Angeles metropolitan area and one mile south of the town of Castaic, which lies on interstate 5. The area is rich in hydrocarbons; the crude oils are predominantly heavy with a high viscosity. Texaco found oil in the area in 1954, but the Tapia Canyon field was not discovered until 1957, when Intex drilled the Yule No. 2 well. This well tested at 120 barrels of oil per day of 18 degree API oil. The field commenced production in August 1957.
Since January 1, 2002, wells on the field have been worked over or re-completed as needed. A limiting factor on increasing the oil production rate in recent years has been water disposal, as the disposal well was unable to handle large quantities of water. Sefton has drilled a new disposal well to expand the capacity of the water disposal system, which is now functioning above management expectations.
Eureka Canyon Oilfield is located approximately 20 miles west of Tapia Canyon Oil Field, in Ventura County, California. The field was discovered in 1893.
The field has been producing since its discovery. California DOG records (from 1917) show the field produced 764,000 barrels of oil to 7-1-93. It has been estimated the field produced about 320,000 barrels of oil from 1893 to 1917, with an estimated cumulative oil production of approximately 1,084,000 barrels of oil to July 1993. The field produced 41,647 bbl from July 93 to March 31, 2002. Cumulative production to 3-31-02 is estimated to be 1,125,000 bbl. 53,000 mcf of gas is reported to have been produced in the past from the producing intervals. This gas was vented or flared. Average oil gravity is approximately 26º API.
- Production volumes at Tapia are rising but yet to reach targeted levels, which are expected in the coming months following continuing well stimulation, cyclic steaming and planned well workover program.
- The current price being received for Tapia crude is approximately $115 per barrel, with an average in February of over $108 per barrel. This represented a premium to NYMEX of up to 7.5 per cent.
- Two newly drilled wells will be undergoing acid treatment followed by cyclic steaming.
- A field-wide cyclic steaming program has been re-started.
- Up to four wells on the Hartje lease are scheduled for a workover programme in the coming weeks, which is expected to boost production from this part of the Tapia oil field.
- A permit for the fourth well at Tapia has been received and drilling is now planned for Q3 2012, in addition to the planned drilling on the Snow lease, where Sefton is investigating the use of horizontal drilling and possibly fracking.
- Good progress being made on the core analysis from newly drilled wells with data being used to upgrade the geologic model ahead of Dr Farouq’ steam flood report.
Oil production in January 2012 was 3,847 barrels averaging 124 barrels of oil per day (“BOPD”), up from 2,102 barrels in December 2011, when some wells were shut-in to allow the drilling of new wells on the Yule and Hartje leases. Currently Sefton is averaging approximately 140 BOPD for the month of February (with production as high as 178 BOPD in the later part of the month) with two wells not producing and two of the new wells producing less than expected.
Forest City Basin - Kansas
Sefton Resources, Inc. is in the process of evaluating the potential of Coal Bed Methane resources in the Forest City Basin area of eastern Kansas. Kansas has more than 53 billion tons of deep coal reserves located within 32 different identified coalbeds. Based on analytical test results, drill cores, and geophysical logs, a study concluded that the Forest City basin contains substantial amounts of coal within the numerous coalbeds that are too deep and too thin to be mined for their coal content by conventional methods. Currently,coalbed methane accounts for about 7.5 percent of U.S. natural gas production.
Therefore, an increasing level of interest from coalbed methane producers has spurred interest in the Forest City basin as a potential producer of commercial quantities of coalbed methane. So far, more than a dozen major CBM producing companies are currently active in the Forest City Basin play. Since 2001, unconventional gas production in Kansas has doubled each year, to just over 9 Billion Cubic Feet (bcf) in 2003. That kind of production attracted a lot of attention, and some of the biggest players in coal bed methane quickly moved into the play, leasing up large land positions in the Cherokee and Forest City Basins.
Sefton made the transition from a buy area of 7600 acres to a buy area of 40,000 acres. There was and continues to be little evidence of leasing competition and when the lease acquisition program started the vast majority of the interests/lands were un-leased. Utilizing two brokers, Sefton has contacted most of the mineral owners and has acquired to date in excess of 30,000 acres. Leases have been acquired with very competitive bonus and brokerage costs. All leases are for a minimum of five (5) years with most having an option to extend for an additional five (5) years. The acreage is situated such that Sefton has coverage on both the conventional oil and gas anomaly and on the thicker Bevier and Riverton coal deposits. The existence of abandoned or temporarily abandoned well-bores on the leased acreage will provide Sefton with the opportunity to test various potentially productive zones and conduct CBM pilot/test projects at minimal risk and expense.
Jim Ellerton - Chairman of the Board
Mr. Ellerton (67) is a geologist and one of the founders of Sefton Resources, which was formed in 1994. Mr. Ellerton has over 30 years experience in the development and evaluation of oil and gas prospects throughout the major basins of North America. He is responsible for business development, screening mergers and acquisitions, funding and shareholder relations and is also resposible for the day-to-day activities of the entire group. Prior to starting Sefton Resources, Jim was successful in the financing and development of smaller oil and gas companies.
Born and raised in England, Jim started his education in London and graduated from the University of Toronto with an Honors Bachelor of Science Degree in Geology. He now resides in Denver, Colorado and is also president and founder of the Arctic Cultural Institute of The United States of America, a nonprofit organization that supports the art and culture of the Inuit.
Karl Arleth - President and CEO
Mr. Arleth (62) joined Sefton from Blue Resources LLC, a Denver-based private oil and gas start-up firm engaged in the acquisition and development of U.S. producing properties and exploration plays. Prior to Blue River Resources, he was Director, President and CEO of Teton Energy Corporation from 2002 to 2009. Between 1999 and 2001 he was a Non-Executive Director of Big Horn Resources, a Calgary-based oil and gas company. Ending in 1999, Mr. Arleth spent 22 years with Amoco and BP, holding various senior positions during his career including: Chair of the shareholder board of Azerbaijan International Operating Company (AIOC) for BP-Amoco in Baku, Azerbaijan; President of Amoco Caspian Sea Petroleum Ltd. in Azerbaijan; Director of Strategic Planning for Amoco Corporations Worldwide Exploration and Production Sector in Chicago; and President of Amoco Poland Ltd. in Warsaw, Poland.
Mark Smith - Non-executive Director
Mr. Smith (40) currently is sole practitioner of law at Mark R. Smith PC in Calgary, Alberta Canada and has been involved in the energy industry for over 20 years. He was previously a partner with Osler, Hoskin & Harcourt LLP for 1997 through June 2009 and was previously a partner with Burnet, Duckworth & Palmer LLP, where he articled in 1986. He was lead counsel in numerous corporate and asset acquisitions and divestitures, primarily in the energy industry. He was the Managing Director and CEO of Scimitar Hydrocarbons Inc. (later merged with Rally Energy), an oil and gas company focused on development and exploration in the Middle East and Africa. He later co-founded and was Executive Chairman of Infiniti Resources, which was a Canadian domestic exploration and production company.
Mr. Smith has served and continues to serve on a number of boards and subcommittees of both public and private companies, including Grey Wolf Exploration, Destiny Resources, Welton Energy and Stone Mountain Resources. He holds a bachelor of Commerce and Bachelor of Laws, both from the University of Alberta.
Harry Barnum - Manager of Exploration and Production
Bill Brand - Chief Financial Officer
Mr. Brand has held various executive positions with international and domestic U.S. oil and gas companies including CFO of Galaxy Energy and PetroHunter Energy, Chief Accounting Officer and interim CFO for Teton Energy, as well as twelve years with BHP Petroleum/Monsanto Oil Co. in several accounting positions.
|JJ Ellerton *||26,710,552||(7.60%)|
* This includes Common Shares held by the C&J Resources, Inc. Pension Plan, C&J Resources, Inc. and J. Ellerton Consultants, all of which are Related Parties to Mr. Ellerton under the AIM Rules for Companies.
Updated from company website 26.04.2012
Sefton Resources, Inc.
2050 S. Oneida Street
Denver, Colorado 80224
City Business Centre
2 London Wall Buildings
Telephone: 011 44 207 448 5111
Fax: 011 44 207 448 5222
PO Box 71,
British Virgin Islands
2050 S. Oneida Street,
Pinsent Masons LLP,
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London EC2A 4ES
Northland Capital Partners Limited,
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