News and Press Releases
Operations Update
March 26, 2009
Sefton Resources, Inc. (Sefton), the AIM listed oil and gas production company
with assets in California and Kansas announces a further update in its planned
development programmes for its two wholly owned subsidiaries, TEG Oil and Gas
USA, Inc (TEG USA) and TEG MidContinent (TEG). This follows from the last update
on February 4, 2009.
Since that date TEG USA reports that:
- All wells are now on production at Tapia and total production for February was
6,502 barrels of oil (average 232 BOPD).
TEG MidContinent has:
- extended the option to purchase HDP, Inc.’s inactive pipeline and gas gathering
system in Leavenworth County (the “Vanguard Pipeline”) pending completion of due
diligence.
TEG USA
TEG USA produced 5,102bbl in January 2009 (164 BOPD) and 6,502bbl in February
(232 BOPD, TEG USA’s highest monthly daily production average). Oil sales were
4,223bbl and 6,276bbl in January and February respectively.
Of the two newly drilled oil wells, Yule #11 commenced production on January
19th. It had a 5 day initial production rate (I.P.) of 30 BOPD and a 30 day I.P.
of 28.5 BOPD. This is very similar to the adjacent Yule #7 and #10 wells and the
historic average for wells in the Tapia oil field.
Hartje #18 commenced production on January 28th. As announced on 4 February, we
expected Hartje #18 to produce at above average rates, based on its location,
the thick pay zone, excellent oil shows while drilling and the interpretation of
the wire line logs run in the well. The well had a 5 day I.P. of 103 BOPD and a
30 day I.P. of 60 BOPD, well above average rates from the field and better than
the adjacent Hartje #16 well drilled last year.
TEG USA OIL PRODUCTION - 2005 to Present
The Yule #9 gas well is awaiting completion in the shallow Saugus gas zone
(approximately 800 feet deep). TEG USA has finalized the log analysis and
completion plan for the well which will allow its use for cyclic steaming to
commence in the near future.
TEG MidContinent
The closing of the option to purchase the inactive Vanguard Pipeline in
Leavenworth County has been delayed until due diligence has been completed,
which is currently expected by early May.
We are encouraged by a third party report on the overview of gas produced and
capable of production in this area after a ten year period of relative
inactivity. Both Coal Bed Methane (CBM) and conventional gas deposits are
present.
In Anderson County a completion programme for the Miller A2-1 CBM well is being
put together. It is currently intended to complete this well before construction
of a pipeline to tie-in to the newly acquired Petrol Waverly water disposal/gas
gathering system (approximately 3 miles to the west)and before
drilling/completion of three additional CBM wells.
Chairman Jeremy Delmar-Morgan commented “We are very pleased with the
performance of our two new Tapia oil wells and are optimistic in our growth
potential in both California and Kansas.”
Enquiries:
Jeremy Delmar-Morgan, Chairman, Tel: 077 8900 4874
John James (Jim) Ellerton, CEO, Tel: 00 1 720 394 7947
Peter Trevelyan-Clark, Nick Harriss, Wye-Li Long
Blomfield Corporate Finance, Tel: 020 7489 4500
Note: The information in this release has been compiled and reviewed by Harry
Barnum, a director of Sefton, who is a qualified person for the purposes of the
AIM Guidance Note for Mining, Oil and Gas Companies. Mr. Barnum has Bachelors
and Masters degrees in Geology and over 20 years of experience in the oil and
gas industry. He is a registered professional geologist in the State of
California.
Sefton Resources is an AIM listed oil and gas production company. Its main 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 40,000 acres in the Forest City Basin of Eastern
Kansas where coal bed methane gas, as well as conventional oil and gas deposits,
are targets.