California Operations and Oil Production Report

06 March 2012

Sefton Resources, Inc.

("Sefton Resources" or the "Company")

California Operations and Oil Production Report

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 operations and oil production in California.

Key points:

·; Production volumes at Tapia are rising but yet to reach targeted levels, which are expected in the coming months following continuing well stimulation, cyclic steaming and planned well workover program.

·; The current price being received for Tapia crude is approximately $115 per barrel, with an average in February of over $108 per barrel. This represented a premium to NYMEX of up to 7.5 per cent.

·; Two newly drilled wells will be undergoing acid treatment followed by cyclic steaming.

·; A field-wide cyclic steaming program has been re-started.

·; Up to four wells on the Hartje lease are scheduled for a workover programme in the coming weeks, which is expected to boost production from this part of the Tapia oil field.

·; A permit for the fourth well at Tapia has been received and drilling is now planned for Q3 2012, in addition to the planned drilling on the Snow lease, where Sefton is investigating the use of horizontal drilling and possibly fracking.

·; Good progress being made on the core analysis from newly drilled wells with data being used to upgrade the geologic model ahead of Dr Farouq' steam flood report.

Jim Ellerton, Chairman, commented today:

"Although the new wells drilled in December are not producing the volumes of oil as quickly as we had expected, we are confident that we can reach the targeted production rates for Tapia once on-going stimulation is completed on certain wells and as we continue our cyclic steaming activities and the workover programme throughout the field."

Across all our operations we are now making good progress with rising oil production and therefore cash generation in California and we expect our Kansas operations to begin making a contribution by mid-2012. This gives us the opportunity to truly transform the Group this year into a much larger entity. We expect to publish a Competent Persons Report valuing our assets in Kansas in the next week and to announce the Groups' Financial results thereafter."

Oil production in California

Oil production in January 2012 was 3,847 barrels averaging 124 barrels of oil per day ("BOPD"), up from 2,102 barrels in December 2011, when some wells were shut-in to allow the drilling of new wells on the Yule and Hartje leases. Currently Sefton is averaging approximately 140 BOPD for the month of February (with production as high as 178 BOPD in the later part of the month) with two wells not producing and two of the new wells producing less than expected.

The Directors believe that this lower than projected production rate can be greatly improved. The Board remains confident of making steady progress in developing Tapia on two fronts: through increased drilling and the planned well workover programme and secondly, through the cyclic steaming program which is a solid intermediate step towards a full field steam flood.

The newly drilled Yule #9RD and Yule #12 wells are currently both producing less than 10 BOPD. Sefton believes that this may be as a result of wellbore formation damage caused by having to use heavier drilling mud while drilling (protecting the well from shallow high pressure gas zones) and is now undertaking a stimulation programme whereby the wells are acidised using a combination of hydrofluoric and hydrochloric acids to clean out formation damaged portions of the wells. This will be followed by the injection of approximately 10,000 barrels of steam to mobilize the oil in place. After a soak period, the wells will be returned to production. Sefton intends to begin this work in mid-March.

Workover programme

In the coming weeks a service rig is expected to start a well workover programme of up to four wells on the Hartje lease. This work includes replacing corroded liners with all stainless steel wire wrapped screens in three wells and recompleting a well where logs have revealed oil saturated sand, in a zone that has not produced before.

Applications for California Division of Oil, Gas & Geothermal Resources (DOGGR) permits for this work has already been made and approval is expected imminently.

Cyclic steaming

Sefton resumed cyclic steaming in late January, beginning with the Yule #5 well. To date, the Company has injected over 8,000 barrels of steam out of a planned total of 10,000. The steaming of this well will be completed in one week. The current injection rate is 394 barrels of steam per day. At that same time, Sefton will begin steaming the Hartje #12 well and subsequently move the steam generator to the Yule lease to steam five Yule lease wells in succession. All wells will have a one-week heat soak period before returning them to production. There are no oil production results to report from the cyclic steaming process at this time, however, the Yule #5 and Hartje #12 wells showed an excellent response to steam during the pilot steam project, with five to ten-fold increases demonstrated.

Crude Price

The current posted price for Tapia crude is approximately $115 per barrel, with an average for the month of February of over $108 per barrel. The postings have remained above NYMEX futures closing prices by as much as 7.5 per cent. during February.

2012 drilling programme

Approval for the drilling of the Hartje #20, which was left out of the Q4 2011 drilling programme, was received recently and it is now planned to be drilled as part of Sefton's Q3 2012 programme, which will also include drilling on the Snow USL lease.

Sefton is working with engineering firm InterAct to prepare cost effective well designs in order to maximise production on the Snow USL lease. They will examine the opportunity of targeting new wells using a combination of horizontal drilling and possibly fracking to increase production efficiency and reducing the number of wells needed to develop the acreage.

Steam flood model for Tapia

CoreLab in Bakersfield has completed over half the analysis work on the core samples obtained from Tapia in the Q4 2011 drilling programme and is expected to finalise the analysis in April 2012. These results will then be incorporated into Petrel Robertson's geologic and engineering reservoir models about the same time (end of April) after which, Dr Farouq Ali can complete his thermal stimulation study on the optimum ways to fully develop a full steam flood at Tapia in June 2012.

For further information please visit www.seftonresources.comor contact:

About Sefton

Sefton Resources is an AIM-listed oil and gas exploration and production company. Its main areas of activity are the East Ventura Basin of California, where it owns 100 per cent. of two oil fields, Tapia Canyon (heavy gravity oil) and Eureka Canyon (medium gravity oil), and East Kansas with over 45,000 acres in the Forest City Basin in addition to three pipeline/gas gathering systems, where coal bed methane, as well as conventional oil and gas deposits are targets.