Competent Persons Report on oil & Gas prospects

Sefton Resources, Inc.

("Sefton" or the "Company")

Independent Report on Kansas Oil & Gas Exploration Prospects,

Acquisition of Cholla Kansas Assets

And Outstanding Oilfield Award

12 May 2011

Highlights

·; Independent Competent Persons Report by consultant Dr. Nafi Onat estimates the PV10 value of Sefton's oil and gas resources in Kansas at US$100.1 million (circa £60 million at current exchange rates)

·; Dr. Onat's report also highlights prospective resources of 1.747 million barrels of oil in Kansas

·; Completion (subject to additional due diligence) of the acquisition of the Cholla assets in Kansas (as previously announced on 10 February and 21 March 2011) together with a proprietary Kansas geological database

·; Sefton's Tapia oil field in California wins an operators award for the third year in a row

Commenting today, Jim Ellerton, Acting Chairman and CEO of Sefton (AIM: SER) said:

"We are excited about the findings of the Competent Persons Report by Dr. Nafi Onat which, for the first time, puts an estimated valuation on our interests in Kansas. This is in addition to the Company's proved oil reserves in California, which at year-end 2010 had a present value (PV10) of US$80.6 million (approximately £49million), and serves to indicate the potential value within Sefton which, as yet, is not reflected in the share price. We are busy working our investor relations programme to get this message out."

A summary of the findings of Dr. Onat's report is outlined below.

Dr. Nafi Onat's report on Kansas prospects

Dr. Nafi Onat of Denver-based Sure Engineering, LLC has published a report which provides an independent geo-technical review and economic evaluation of the conventional (sandstone, limestone and dolomite) and unconventional (coalbed methane gas) prospects in Sefton's Kansas exploration projects which covers the Anderson, Franklin and Leavenworth Counties. This has been prepared in accordance with the standards of the Society of Petroleum Engineers ("SPE").

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 which are shown in the table below.

Summary of economic analysis

Note: No pipeline revenue and/or McLouth development in Leavenworth County have been included at this time.

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").

Currently there are possible reserves and contingent resources attributable to Leavenworth County, and there are contingent and prospective resources attributable to Anderson and Franklin Counties, but there are no proved reserves attributable. However, the year-end 2010 reserve report identifies 2.3 Bcf of possible natural gas reserves associated with the Company's Eastern Kansas acreage (prior to this report by Dr. Onat).

Oil price and operating costs were kept constant during the lives of the wells but the gas price started at US$4 per mcf and was escalated at 10% per year to a maximum price of US$6.50 per mcf and kept constant during the lives of the wells.

Single zone completion of Riverton coal in Anderson and Leavenworth counties, and single zone completion of Bevier coal in Franklin County is recommended when coal thickness is greater than 2 feet.

Economics in the area are very sensitive to natural gas prices. When the gas price is lower than US$4 per mcf, purchase of existing wells and recompletion of the coal seams makes more economic sense. When gas prices are greater than US$5 per mcf, drilling new wells should be considered.

Dr.Onat points out that his report includes no pipeline revenue and no valuation placed on the McLouth development in Leavenworth County. The report points out that transporting third party gas through TEG MidContinent, Inc.'s ("TEG")pipeline system for fees is likely to generate significant additional revenue, but that no such revenue was included in this study at this time. The report also excluded any compression, pipeline tap-in, interconnect, installation and pipeline operating costs from cash flow projections, and cost assumptions were limited to only common field lease operating costs.

On the prolific McLouth and Burgess producing formations that lie within Leavenworth County, no oil and gas resource estimates have been made for the sand potential in this study since no geologic study to support any accumulation within the TEG leases is available at this time. TEG is in the process of commissioning a study for this area. Historically this area has had and is expected to have significant oil and gas production attributed to these formations, particularly as little, if any, drilling has occurred in the last few years (due to curtailment of gas transportation, etc.). Once such a study is completed, a further update will be announced.

The report and its projections will be updated periodically as progress is made in the development of the project such as the completion of the McLouth study, pipeline analysis and the implementation of recompletion operations and associated work.

Completion of the acquisition of the Cholla assets and proprietary database in Kansas

The Board is pleased to report that it has completed (subject to additional due diligence on certain of the assets) the acquisition of assets from Cholla Production LLC ("Cholla") on 29 April 2011.

A binding purchase and sale agreement ("PSA") was originally signed on 15 March 2011, with the intent to acquire acreage (leases, wellbores, equipment and technical data) in close proximity to the Cholla pipeline ("LAGGS") (see announcement of 11 January 2011). The LAGGS system was acquired by TEG in December 2010, in Leavenworth County, Kansas. A total potential purchase price of US$200,000, subject to standard due diligence, was agreed in the 15 March 2011 PSA. Total assets with a valuation of US$108,681 cleared due diligence and were closed on 29 April 2011. Cholla and TEG have mutually agreed to extend the post-closing adjustment period to 30 June 2011 to allow Cholla additional time to cure due diligence issues on the remaining assets.

In a related but separate PSA, TEG also acquired from Cholla a proprietary geologic data base which was not part of the asset sale discussed above. TEG paid total consideration of US$35,000 for the data which includes a computerised database of proprietary well data and shallow gas prospects in the Leavenworth area, print maps, cross sections and a proprietary report detailing all prospects, geology, and engineering in the area. Cholla has also agreed to provide consulting access to TEG for a period of one year following the signing of the agreement.

Tapia oil field wins an award

The Department of Conservation in California has informed TEG Oil & Gas USA, Inc. (100%-owned subsidiary of Sefton) that it is to be awarded an Outstanding Oil Field Lease and Facility Award for its 2010 operations in the Tapia oil field. These awards are presented in recognition of operations excellence and the Company is honoured to have now received this award for three consecutive years.

Enquiries:

For further information please visit www.seftonresources.com

About Sefton Resources

Sefton is an AIM-traded oil and gas exploitation and production company. Its main area of activities 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 in the Forest City Basin, where coal bed methane, as well as conventional oil and gas deposits are targets.

Sefton has a current market capitalisation of £4.98million. At 31 December 2011, the present value of the Company's proved reserves (PV10) wereUS$80.6 million (approximately £49 million). The estimated 2010 year-end proved reserves of 3.8 million barrels includes proved developed (PD) reserves of 1.6 million barrels and proved undeveloped (PUD) reserves of 2.2 million barrels. All of Sefton's 2010 year-end estimated proved and possible reserves were independently estimated by Reed W. Ferrill& Associates.

In addition, there are 2.3 billion cubic feet (BCF) of estimated possible gas reserves at year-end 2010 associated with the Company's eastern Kansas assets (see above).

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 September of 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 Professional Engineers.