3rd Jul 2006 08:06
Sefton Resources Inc03 July 2006 Sefton Resources, Inc. ("Sefton Resources" or the "Company") Sefton Resources is pleased to announce that on 30 June 2006 it signed anagreement to sell its subsidiary, TEG Oil & Gas Canada, Inc ("TEG Canada") toMark R Smith, with closing scheduled for later this week. This is further to thestatement contained in the announcement of the Company's final results on 14June 2006 that it was in discussions to sell TEG Canada. With the Company's focus increasingly on its California oil fields and EasternKansas coal bed methane fields, the Board believes that TEG Canada is no longerstrategically important to the group and, as announced on 21 February 2006, thatbetter value would be generated by seeking to dispose of it (having first madeit a wholly owned subsidiary). For the year ending 31 December 2005, TEG Canadamade a loss of CDN$145,792. As at 31 December 2005, the value of the assets ofTEG Canada was CDN$1,766,025. However prior to the signing of the saleagreement, there was a restructuring such that only the Canadian assets of TEGCanada, valued at CDN$531,455, now remain in that company. The consideration of US$450,000 is to be satisfied in cash, but the amount issubject to upward or downward adjustment dependent on, inter alia, the amount ofworking capital of TEG Canada on 1 May 2006 (which is to be calculated, asagreed between the parties). The Company plans to use the proceeds of thedisposal to further develop its Eastern Kansas assets. For further information, contact: John James (Jim) Ellerton, Chairman & CEO Tel: 00 1 303 759 2700 Jeremy Delmar-Morgan, Director Tel: 020 8748 4066 David Millham, Investor Relations Tel: 020 7796 9999 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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