News and Press Releases
Operations Update
February 7, 2008
2008 DRILLING PROGRAM
Sefton Resources, Inc., the AIM listed oil and gas production company with assets
in California and Kansas, announces that its wholly owned subsidiary TEG Oil &
Gas USA, ("TEG") has commenced the drilling of the Snow #3 development oil well.
The well is the first in a series of the three to four wells in the Tapia 2008
Q1 drilling program. The Snow #3 well spudded on Sunday, February 3, 2008.
Each of these three to four wells are step-out wells designed to extend the
productive limits of the Tapia Oil Field to both the east and west. The three
Snow Lease wells are anticipated to encounter a thickened section of Yule oil
sand reservoir. The Yule sand productive thickness is mapped at greater than 120
feet for each of the planned three Snow lease wells. Each well will take eight
to ten days to drill and complete.
TEG will evaluate these wells over the coming months and use the data to plan the
next round of drilling at Tapia.
STEAM PROGRAM
TEG is awaiting final approval from the Los Angeles Air Quality Control Board
(AQMD) for firing the TEG steam generator with propane. TEG will commence with
the steaming of the Yule #7 well once this final approval is given. The AQMD has
already given approval for the construction of the steam equipment capable of
burning lease gas, natural gas and propane. This final approval is believed to
be purely an administrative one which TEG is endeavoring to expedite.
Chairman, Jeremy Delmar-Morgan commented, "It has been a good start to the year
with the drilling program now underway. As a result of the planned step-out
wells in 2008 and the drilling in late 2007, our cash flow has improved
considerably. The improved cash flow will allow Sefton to develop its assets
without substantially increasing its debt."
For further information, contact:
Jeremy Delmar-Morgan, Chairman Tel: 077 8900 4874
John James (Jim) Ellerton, CEO Tel: 00 1 303 759 2700
David Millham, Investor Relations Tel: 020 7796 9999
Nicola Marrin, Seymour Pierce Limited Tel: 020 7107 8000
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 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.