Sefton Resources

REDUCE

25/01/2012 Robert Tyerman

US-focused Sefton Resources (SER) expects to produce a new independent reserve estimate for its Tapia Canyon heavy oilfield before April.

Directors, including seasoned entrepreneurial executive chairman Jim Ellerton, have lately increased their holdings in the Denver, Colorado-based AIM company, which raised £1m at 2.1p in December to accelerate oil and gas production from its assets in California, including Tapia, and Kansas.

In a new trading update, Sefton, which increased revenues marginally to $2m (£1.25m) in the first half of last year but saw net profits fall from $335,000 to $74,400, says three new wells are now in production at Tapia. Ellerton says the company should this year 'begin to really benefit from the pipeline infrastructure we have acquired and are making operational'.

Growth Company Investor highlighted Sefton shares at a depressed 2p in February 2011, before suggesting partial profit taking at 3.95p last May. They now change hands at 2.35p, at which a further reduction looks appropriate, while retaining some for possible longer-term gains.  

   

Tags: AIM market, Califiornia oilfield, Jim Ellerton, Reserve estimate

Sector: Oil & Gas Producers

Companies: Sefton Resources

Market cap: £9.3m

PE Forecast: n/a

Share price: 2.35p