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.