News and Press Releases

Production Update

Dec 13, 2008

Sefton Resources Inc, announces that production from TEG Oil & Gas USA's two new wells, Hartje #16 & #17, drilled in the Tapia Oil Field in California, has begun to stabilize. After the initial flush production from the wells, the productive rates have settled to current rates of 47 and 28 BOPD on average. The 30-day rates will be reported once they are completed.

TEG is also modifying its Steam Pilot Programme at Tapia. After completing some remedial work on the Yule #8 gas well, gas flow rates from the well are still variable as a result of the well being idle for four years. Wellhead pressure is currently above 200 psi and because of this, it is believed that the well may still clean up and become serviceable over time. The gas rate variability causes the steam generator to shut down, and this is part of the steam generator's normal safety system. However, TEG believes attempting to conduct a pilot steam study with inconsistent steam injection could lead to poor data and inconclusive results. TEG has other wells in the Tapia field in which it can perforate the shallow gas interval and which can be used for the steaming process. Nonetheless, TEG is now considering the use of propane gas for the Pilot Programme only. This would allow it to test the viability of the steam-stimulation process in a more expedient and consistent manner. During this time TEG will be able to continue to work on the YULE #8 gas well and also properly plan the use of other gas supply wells in the field-wide steam program going forward.

For further information, contact:

John James (Jim) Ellerton, CEO Tel: 00 1 303 759 2700
Jeremy Delmar-Morgan, Chairman Tel: 077 8900 4874
David Millham, Investor Relations Tel: 020 7796 9999
Nicola Marrin, Seymour Pierce Limited Tel: 020 7107 8000

Notes to editors:

Sefton Resources is an AIM listed oil and gas production company. Its main core area of activity is in the East Ventura Basin in California, where it owns 100% of two oil fields, Tapia Canyon (heavy gravity 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 where Coal Bed Methane gas, as well as conventional oil and gas deposits, are targets.