News and Press Releases

TEG USA Operation Report

September 2, 2008

Sefton Resources, the AIM listed oil and gas production company with assets in California and Kansas, announces an update through its wholly owned subsidiary TEG Oil & Gas USA Inc. ("TEG") regarding production and operations in California.

TAPIA FIELD

Cyclic Steaming Pilot

Results of the steaming of the Yule #7 well were mixed, however, the results form the Yule #10 well are extremely encouraging. Yule #7 showed a moderate increase in production and this rate held up for three months. The Yule # 10 well responded to steam stimulation greater than pre-steaming expectations yielding an increase in oil production greater than 100% from the well. The steam volume injected into Yule #10 was 63% of that injected into Yule #7. Soak periods for both wells was three weeks time. We believe that differences in reservoir and drainage conditions in the subsurface are responsible for the observed variance between the wells response. Nonetheless, we are extremely excited about applying the cyclic-steam stimulation to both old and new wells field-wide.

TEG will be working on the two gas wells Yule #8 and Snow #1 in the coming weeks. If mechanical issues in either of these wells can be solved such that gas can be supplied from them to the steam generator at an appropriate rate and pressure, the systematic steaming of other wells in the field will begin accordingly.

Tapia Drilling Plans

TEG USA has budgeted funds for the drilling of three new wells on the Yule Lease during the Fourth Quarter of 2008. Should the gas supply well mechanical repairs prove ineffective, one of the new wells to be drilled will be a new gas supply well, designed and completed for gas production. The remaining two will be oil producers. TEG has initiated permitting of five additional new wells on the other Tapia leases which should be completed in the coming months. The first of these are tentatively scheduled to begin in March, 2009.

EUREKA CANYON FIELD

TEG USA conducted a successful well clean-out and pump replacement operation in Eureka Canyon during the month of June. The monthly production at Eureka averaged 230 BOPM for the three months prior to this work. As a result of this work, the reported production at Eureka for the month of July was 410 bbls. of oil.

Geochemical Survey Planning Work with W.L.Gore, Inc. is continuing and TEG USA is on schedule to begin field work for the follow-up reconnaissance geochemical survey in September. We are now in the process of refining our sampling grid over the prospective are identified in the initial survey.