Sefton Resources

That Sefton can command such a market cap with paltry revenues ($188,673 in the six months to June, up from $89,713) and substantial losses ($585,863, up from $254,198, in the same period) defies belief. The company and its chief executive, Jim Ellerton, promised the world after it came to Aim last December. They claimed the firm would build up production at its Tapia Canyon 'heavy oil' field in California from 30 to 800 barrels per day, using new processes that would produce profits even at an oil price of $10 per barrel. Nothing of the sort has happened. The shares have crashed from their 5p issue price to currently depressed levels. This oil minnow is making heavy losses because of 'general and administrative expenses' of $563,512. Assurances that a financial management restructure and 'improved investor relations' and commodity prices 'should contribute to a strong second half' ought to do little to assuage the concerns of long-suffering investors. Anyone unfortunate enough to hold these shares should sell.

Sector: Oil & Gas Producers

Companies: Sefton Resources

Market cap: £2.6m

PE Forecast: n/a

Share price: 0.88p

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