3rd Aug 2015 09:51
LONDON (Alliance News) - Sefton Resources Inc on Monday said the sale of its assets in Kansas has fallen through, but it said it is making progress on identifying an acquisition to make in Indonesia and said the bankruptcy petition filed against it in the US by its former chairman has been dismissed.
Sefton said the proposed buyer for its TEG MidContinent Inc and TEG Transmission LLC units in Kansas no longer wants to proceed with the deal on the agreed terms. The new terms which have been proposed, which Sefton said have been influenced by the recent fall in the oil price, were not in line with its aims and so the deal has been terminated.
As a result, the company is set to appoint a consultant to advise on the sale of the Kansas assets and hopes to conclude a deal in the near term.
Sefton also said it is continuing to make good progress on the potential acquisition of a portfolio of assets in Indonesia as part of the development deal it signed in June with UTAS Petroleum Services Ltd. The pair signed the deal with a view to identifying an oil and gas producing asset in Indonesia which Sefton could acquire. Under the terms of that deal, Rob Shepherd, a technical consultant with experience working for the likes of Royal Dutch Shell PLC and Ophir Energy PLC, could become the chief executive of Sefton if a deal is eventually sealed.
Sefton said the process of identifying an asset is ongoing and progressing in line with its expectations and said a shortlist of separate future deals has also been drawn up.
Under the deal with UTAS, Sefton has paid UTAS GBP500,000 to allow the joint venture to progress the due diligence and potential funding for a new acquisition.
Sefton also said the US District Court for the District of Colorado has dismissed the bankruptcy petition filed by Jim Ellerton, the company's former executive chairman. Ellerton had filed documentation in July to try to force Sefton into bankruptcy proceedings. Sefton said the court ruled the petition was filed in "bad faith" and it is seeking to recover all fees it has paid out in its dispute with Ellerton.
Sefton shares were down 11% to 0.0490 pence on the news.
By Sam Unsted; [email protected]; @SamUAtAlliance
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