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Sefton Resources (SER)

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Wednesday 06 March, 2013

Sefton Resources

Placing of New Equity

RNS Number : 3253Z
Sefton Resources Inc
06 March 2013
 

6 March 2013

Sefton Resources, Inc.

("Sefton" or the "Company")

 

 

Placing of New Equity

 

Sefton Resources (AIM: SER), the independent oil and gas exploitation and production company with interests in California and Kansas announces a placing of new common shares of no par value in the Company ("Common Shares").

 

In order to maintain the momentum that has been gained at the Company's Kansas operations, the Company has today raised a gross amount of £650,000 through a placing of 108,333,333 Common Shares (the "Placing") at 0.6 pence per Common Share (the "Placing Shares"). The Placing was organised by Dowgate Capital Stockbrokers Limited ("Dowgate"), the Company's broker, with 104,000,000 Placing Shares being placed with clients of Dowgate.

 

In line with the Company's stated strategy, the funds raised under the Placing will be used primarily to fund the ongoing workover and recompletion programme as well as expanding the lease acquisition programme for future exploration and development in Kansas. Leases being targeted have been highlighted by consultant Dr Nafi Onat's on-going engineering study and the Company's internally developed geological maps.

 

Application has been made to the London Stock Exchange for admission of the Placing Shares to trading on AIM ("Admission"). It is expected that Admission will become effective and that trading in the Placing Shares will commence on 12 March 2013. The Placing Shares will rank pari passu in all respects with existing Common Shares.

 

Following Admission, the Company will have 685,915,053 Common Shares in issue. This figure may be used by shareholders in the Company as the denominator for calculations by which they will determine if they are required to notify their interest in, or a change to their interest, under the Disclosure and Transparency Rules.

 

For further information please visit www.seftonresources.com or contact:

 

John James Ellerton, Chairman of the Board

Tel: 001 (303) 759 2700

Dr Michael Green, Investor Relations  

Tel: 0207 448 5111

Nick Harriss, Nick Athanas, Allenby Capital (Nomad)

Tel: 0203 328 5656

Neil Badger, Dowgate Capital Stockbrokers (Broker)

Tel: 01293 517744

Alex Walters, Cadogan PR

Tel: 07771 713608

 

 

About Sefton

 

Sefton Resources is an oil and gas exploitation and production company with significant scope to grow its three projects in onshore United States that are 100%-owned and operated. The business strategy is to acquire long life, controlling interests, partially developed reserves and then to seek maximize shareholder value through asset development using the Company's own funds initially and then involve third party capital, farm-out or merger.

 

Currently Sefton has a market capitalisation of approximately £5 million and an unrisked PV(10) proved reserves and resources value of $278 million (approximately £185 million) based on its assets as at the end of December 2011. The key operational focus at this time is on developing three opportunities in California and Kansas:

 

Enhanced Oil Recovery (EOR) projects in California

 

Sefton owns 100% of two oil fields In East Ventura County - Tapia (heavy gravity oil) and Eureka Canyon (medium gravity oil). Estimated 2011 year-end proved reserves stood at 3.8 million barrels. The current operational focus is to fully develop Tapia with an active well drilling and work-over programme in conjunction with the use of cyclic steam production enhancement. Sefton engaged Petrel to construct a geologic model to be utilised by Dr Farouq Ali, a recognised expert, in a thermal stimulation study to optimise production and reserve development for Tapia. Of all Sefton's operations, Tapia generates the majority of the revenues, at this time.

 

Exploration and Production in Kansas

 

In East Kansas, Sefton has a significant and growing acreage position (Leavenworth and Anderson Counties) in the Forest City Basin, where conventional oil and gas deposits as well as Coal Bed Methane (CBM) prospects have been identified. The current operational focus is in Leavenworth County where a workover and recompletion programme is under way that will see oil, gas and CBM wells brought back into production with first revenues from oil whilst additional gas assets are being assembled for the future development as all the pipelines become operational.

 

Natural Gas Transmission in Kansas

 

Three gas pipelines have been acquired by Sefton. The LAGGS pipeline in Leavenworth County has been fully refurbished and is now connected to the Southern Star Interstate Pipeline system which allows sales outside the local Kansas market. Plans are to join the Vanguard pipeline to the LAGGS system in Leavenworth County which will increase the scale of this gathering system.  This means Sefton is able to transport its own gas as well as third party gas to market and generate additional revenues.

 

A third pipeline in Anderson County is planned to be connected to an interstate pipeline system in the future to provide additional opportunities for redevelopment of oil, equity and third party gas.


This information is provided by RNS
The company news service from the London Stock Exchange
 
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