California oil production

9 November 2012

Sefton Resources, Inc.

("Sefton" or the "Company")

California oil production

Sefton Resources (AIM: SER), the independent oil and gas exploitation and production company with interests in California and Kansas, is pleased to announce an update on oil production from California.

Highlights

·; Preliminary oil production data for California has been compiled for the month of October 2012 and indicates an average of 115 barrel of oil per day (BOPD) produced compared to 108 BOPD for the month of September 2012.

·; Drilling of a new water disposal well is now planned plus surface work designed to resolve the water disposal and surface equipment limitations at the Tapia Canyon oil field.

·; Full field steam flood report on the Tapia Canyon oil field is expected to be completed by the year-end.

Jim Ellerton, Chairman of the Board said:

"Oil production in California is continuing to edge higher and measures are now being adopted to optimise production at Tapia. Improving water disposal facilities (drilling a new well) and surface equipment will allow production to increase to more appropriate levels. In addition to improvements in the Tapia infrastructure, we all look forward to the completion of Dr Ali's full steam flood report which will serve as a road map to outline the development program for the Tapia Canyon oil field."

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

California oil production

Preliminary oil production data (tank data) has been compiled for the month of October, 2012. This data indicates an estimate of 3,573 barrels of oil produced or approximately 115 barrels of oil per day (BOPD) compared with equivalent numbers of 108 BOPD in September 2012 and 98 BOPD in August 2012. The final number will be available after oil sales numbers are provided to TEG USA (Sefton's wholly owned subsidiary) by our oil purchaser, in which oil volume is adjusted for any shrinkage to API specification and with basic sediment and water (BS&W) removed, which is typically a reduction of around 4%.

The final production number for October will be available after oil sales are provided to the Company by the oil purchaser, which the Company expects to receive about mid-November. The final production numbers by well will then be submitted to the Californian Division of Oil, Gas & Geothermal Resources ("DOGGR") for posting on its website.

Oil production continues to be hampered by the limits on water disposal and heat related issues. TEG USA has applied for and received a permit from the DOGGR to drill a replacement water disposal well adjacent to the original Hartje #8 water disposal well. TEG USA has also submitted a permitting package for the replacement well to the County of Los Angeles (the "County"). The County usually takes longer than the DOGGR on these matters. Two rigs have been located and are available depending on the time involved in this permitting process. The Company will provide an update to shareholders once the County has completed its process.

Cyclic steaming

Cyclic steaming is progressing and the previous wells steamed (Yule #11 and Yule #12), are being run about half-time at present, allowing for some heat dissipation above 200°F. Budgeted work on surface facilities (for which permits are already approved) is planned during the current and following quarter to allow for higher operational temperatures, and a further update to shareholders will be provided as appropriate.

Full field geologic model and simulation report

The Board realise that shareholders, as have the management, been waiting for longer than expected for the results of full field simulation report. Dr Farouq Ali's initial report indicated that Tapia was a good candidate for a full field thermal simulation project which would require a geologic model to be constructed to ensure optimum results from such a study.

The majority of the delay in the whole project has been the construction of the geologic model which was more complex than anticipated and required additional critical information obtained from core data retrieved from recently drilled wells. The geologic model is now completed and has been signed off by Petrel Robertson Consulting ("Petrel") (who provided the simulation ready geologic models) and Dr Farouq Ali and independently tested by a third party.

Dr Ali has begun a history match to back test the model against the past performance of the field. Once this work is completed, Dr Ali will commence the final simulation runs and has agreed to complete his work by the end of the year.

Petrel has been contracted to prepare a power point presentation of the geologic model outlining how it was constructed, its complexity, how it will be used by Dr Ali and how the results will be presented. This presentation will be announced and posted on the Company's website once available.

The independent third party mentioned above has tested the model and are able to carry out a separate study to that of Dr Ali should this prove necessary in order to ensure that this project is completed in a timely fashion, and who may be engaged to provide a parallel study.

About Sefton

Sefton Resources is an oil and gas exploration 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 £7 million and was valued by independent experts to have a PV(10) of $278 million (approximately £173 million) based on its assets as at the end of December 2011. The three key operations focus on developing opportunities in California and Kansas.

Enhanced Oil Recovery (EOR) projects in California

Sefton owns 100% of two oil fields In East Ventura County - Tapia Canyon (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 Canyon with an active well drilling and work-over programme being undertaken and initially the use of cyclic steam recovery to boost production and reserves leading to the ultimate goal of a full field steam flood development programme. As part of this final phase, Sefton has engaged Dr Farouq Ali, a recognised expert to undertake a study on a full steam flood development of the Tapia field and his report is expected before the end of 2012. Tapia is the most advanced of Sefton's operations and generates revenues.

Exploration and Production in Kansas

In East Kansas, Sefton has over 45,000 acres (Leavenworth and Anderson Counties) in the Forest City Basin, where conventional oil and gas deposits as well as Coal Bed Methane (CBM) have been identified. The current operational focus is in Leavenworth County where a workover and recompletion programme is planned 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 the pipelines become operational. At the same time Sefton is accelerating its leasing plans with the aim to double its current acreage in Kansas in the near future.

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 nationally. This means Sefton is able to transport its own gas as well as third party gas to market and generate additional revenues. Plans are to join the Vanguard pipeline to the LAGGS pipeline in Leavenworth County which will increase the scale of this gathering system. A third pipeline in Anderson County is currently being tested and certified - once complete this will also be connected to an interstate pipeline system to provide additional opportunities for redevelopment of oil, equity and third party gas.