News and Press Releases

Rig and Steaming Status Report

October 24, 2007

Sefton Resources Inc reports that its wholly owned subsidiary TEG USA has completed all connections to the steam generator including: gas supply line, water supply line, electrical connections, and pressurised air supply. The fires reported in California are in proximity to Sefton's properties but currently are not a direct threat to the operations at Tapia and Eureka. Due to logistics and as a precaution, the final function-testing of the steam generator has been slightly delayed until any possible risk from the fires is reduced. TEG anticipates conducting an initial start-up of the steam generator at that time. Once TEG and Clayton are satisfied that all systems are functioning properly, TEG will order out a service rig to the Yule7 well to pull the down-hole pump and install the steam injection packer in the well. Sefton will inform shareholders when steaming at Yule 7 has commenced.

As far as the drill rig is concerned this is still currently drilling the final section of a hole for its current operator. Chief Executive, Jim Ellerton said 'We just have to continue to be patient while waiting for this rig to drill our planned Hartje 16 and 17 wells. The problem is that there are many variables over which the driller has no control and therefore there are no penalty clauses for delays in these contracts. We are very hopeful that the rig will be with us shortly and will announce its arrival and commence drilling when this occurs'.

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