Competent Persons Report on Kansas Oil & Gas

Sefton Resources, Inc.

("Sefton" or the "Company")

Competent Persons Report on Kansas Oil & Gas Assets and Prospects

Sefton Resources (AIM: SER), the independent oil and gas exploitation and production company with interests in California and Kansas, is pleased to announce the findings of an Independent Competent Persons Report produced by Dr. Nafi Onat which assesses and values the company's potential oil and gas resources in Kansas.

Highlights:

·; The report estimates the PV10 value of Sefton's potential oil and gas resources in Kansas and anticipated pipeline revenues at this time of US$140.0 million (£89 million).This is a 40% increase on the valuation reported in May 2011.

·; The report includes Mississippian related prospective oil resources of 1.97 million barrels; shallow CBM related possible, contingent and prospective gas resources of 55.78BCF; and assumes an anticipated pipeline revenue with flow rates of 10MMCF/d of gas over a 20 year period.

·; The evaluation excludes the prolific Mississippian related McClouth and Burgess sand producing areas, until a more comprehensive geologic/engineering study has been completed.

Commenting today, Jim Ellerton, Chairman of the board said:

"We welcome the findings of Dr. Nafi Onat report which gives an updated estimated valuation of our interests in Kansas and highlights the opportunity we have of significantly increasing value, reserves and revenues in the coming year. When added to Sefton's proved oil reserves in California, which at year-end 2011 had a value (PV10) of US$137.8 million (£87.7 million), it really shows the potential value of Sefton's current assets.

We are now working hard to transform this value into production and cashflow through increasing oil production at Tapia and through our Kansas operations which we expect will begin generating cash in the second half of 2012. These operations will provide the stream of recurring earnings needed for us to transform Sefton into a far larger oil and gas business through mergers and acquisitions."

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

Dr. Nafi Onat's report

Dr. Nafi Onat's report provides an independent geo-technical review and a potential economic evaluation of the company's properties, by classifying the assets and estimating the value of recoverable hydrocarbon resources. In addition, the report estimates potential revenue to the company via its Vanguard and Laggs gas gathering pipeline system, from both third party gas and company's own gas.

Basis of preparation

Dr. Onat assessed the potential economic values of the prospects both in terms of the recoverable volume scenarios as well as the hydrocarbon types considered and generated a range of values for each potential formation in Anderson, Franklin and Leavenworth Counties. In addition, the report estimated an economic valuation of transporting equity and third party gas through Sefton's system consisting of LAGGS and the Vanguard pipelines for fees which is likely to generate significant additional revenue for the company.

Oil price and operating costs were kept constant during the lives of the wells. Cash flow projections were generated assuming a 100% working interest, a 87.5% net revenue interest and a constant oil price of $90 a barrel. The gas price assumed to be a constant US$3 per Mcf in 2012 and then escalated at 15% per year until a maximum price of US$6.50 per Mcf and then kept constant during the lives of the wells.

The 10MMcfd model for the pipeline assumed that total gas sales available starting in July 2012 with 1 MMcfd flow rate for the first year through September 2013 rising steadily to a flow rate of 10MMcfd in February 2016 until 2032. Total pipe-line operating costs are assumed at $15,000 per month for the first year and it increased by $7,500 per month for each additional 1 MMcfd increase in gas volume. Pipeline installation costs were excluded in the model. It is also assumed that Sefton owns 100% of the pipeline and generates a fee of $1.25 per Mcf from sales. The model is based on what the Company has identified now and on leases adjacent to the pipeline.

The previous report announced in May 2011 showed a PV10 valuation of $100.1 million. The discounted cumulative cash flow generated in this latest report increases by 40%. The difference is due to a combination of the current oil price being higher, lower gas prices, higher net revenue interests on the company's oil and gas leases and the addition of potential revenue expected from Sefton's pipeline system. In the future it is expected that US natural gas prices will rebound as the cost of US shale gas production increases and gas demand for power generation grows strongly.

The valuation determined is shown in the following table.

Note: McLouth development in Leavenworth County have not been included.

For the purposes of its report, Sure Engineering used the Petroleum Resources Management System (PRMS) published by the Society of Petroleum Engineers / World Petroleum Council / American Association of Petroleum Geologists / Society of Petroleum Evaluation Engineers in March 2007 ("SPE PRMS"). Based on this system, hydrocarbon potential recoverable volumes are classified as reserves when economically recoverable volumes have been discovered, contingent resources when such discovered volumes are not currently considered economically recoverable, and prospective resources when hydrocarbons are indicated but not actually discovered.

Future prospects and opportunities highlighted by the report:

Mississippian Erosional Surface related prospects

Leavenworth County contains the prolific McLouth and Burgess sand producing areas which are expected to have significant oil and gas production prospects particularly as little drilling has occurred in the last decade or so. Before exploration slowed in the late 1980's, 30 McLouth fields were discovered. Some of these fields may have been abandoned prematurely due to low oil and gas prices and may represent excellent targets for re-entering and converting to economically producing fields.

As these producing formations appear to be related to the Mississippian erosional surface, Sefton has completed Mississippian 3rd order-residual-geologic maps, which demonstrate a pattern of hydrocarbon accumulations of the McLouth reservoir. The company is now planning a comprehensive geologic and engineering study to identify sedimentation cycles of these reservoirs which when correlated with the 3rd order-residual geologic maps and other subsurface maps may lead to the location of potentially productive McLouth hydrocarbon prospects.

In addition to the McClouth and Burgess producing formations, there are other formations related to the erosional surface with "channel" sand oil deposits (Squirrel sands, within the Bartlesville formation-Cherokee age). The geologic/engineering study is also expected to locate prospects within these formations.

CBM related prospects

Coal bed methane producing coals are fairly uniform and present throughout the entire area of Sefton's interest - this "regional" gas play is fairly recent in comparison to the drilling in the area - and as such, the shallow coals can be seen in many logs of the wells that have penetrated these formations. Enough examples of recompletions in these coals, with resulting gas production has led to the evaluation of CBM potential, being that of a statistical nature - which is sensitive to natural gas prices. When prices are less than $3 per Mcf, purchase of existing wells and recompletion in the coal intervals is strongly recommended. When gas prices are greater than $5 per Mcf drilling of new wells should be considered.

Future updates of the Competent Persons Report

Dr Nafi Onat's report and its projections will be updated in the future to re-determine the valuation of the company's Kansas oil and gas assets and prospects when progress is made on the following potentially value enhancing developments:

·; Activation of contracts with third parties to supply gas.

·; Recompletion of existing wells to flow our own gas

·; On commencement of gas flowing from Sefton's pipelines into the interstate gas transportation system. A move which will allow cash flow generation to begin and that will also trigger an upgrade of the reserves.

·; The completion of the McLouth geologic/engineering study.

·; Additional oil and gas leases that have been identified by the McLouth study.

·; Further asset acquisitions in the area.

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% of two oil fields, Tapia Canyon (heavy gravity oil) and Eureka Canyon (medium gravity oil), and East Kansas with over 45,000 acres and three gas gathering pipeline systems in the Forest City Basin, where coal bed methane, as well as conventional oil and gas deposits are targets.

Dr. Nafi Onat, Ph.D.

Dr. Nafi Onat, Ph.D., is a Petroleum Engineer with over 30 years of industry experience. He has held positions with major and independent oil and gas companies, including Mobil and Wenner Petroleum. In 1997, after nine years of consulting, Dr. Onat founded Sure Engineering, LLC, a consulting company specialising in petroleum and natural gas engineering. Dr. Onat received his Ph.D. in Petroleum Engineering in 1975 from Colorado School of Mines, Golden, Colorado, and is a member of the Society of Petroleum Engineers