Drilling Starts at Tapia and Kansas Update

23 November 2011

Sefton Resources, Inc.

("Sefton Resources" or the "Company")

Drilling Started at Tapia Canyon, California

And

Update on Kansas

Sefton Resources (AIM: SER), the independent oil and gas exploitation and production company with interests in California and Kansas, is pleased to announce that the drilling of four new wells has begun at the Tapia Canyon oil field in California and further progress has been made in the development of its gas operations in Kansas.

Highlights:

·; Drilling of four new wells began at Tapia Canyon on Wednesday 16 November and expected take approximately five weeks to complete.

·; Oil production in early 2012 is expected to rise by up to 75% to an estimated 240 barrels of oil per day, once the new wells are on stream.

·; Vintage Production LLC, an Occidental Petroleum Corporation subsidiary, appear to have successfully drilled two horizontal wells in the adjacent oil field to Sefton's in Tapia Canyon.

·; Dr. Farouq Ali's Interim report on the Tapia Canyon steamflood model reinforces earlier findings that Tapia Canyon has the potential to become an up to 1,750 barrels of oil per day operation.

·; Southern Star gas interconnect agreement has been executed (21 November 2011), which will connect Sefton's pipeline system in Kansas to the Interstate Pipeline System and natural gas markets.

·; North and West parts of the LAGGS gas pipeline system in Kansas now certified for operations with the adjacent Vanguard pipeline system expected to also be operationally certified shortly.

·; Dr Nafi Onat to update Competent Person Report on Kansas at the year-end.

Jim Ellerton, Executive Chairman, commented today

" We are pleased to have begun our 4 well drilling programme in Tapia Canyon in California, which is an important step in our ambitions to improve production and revenues and which, in addition, will give us invaluable data on the way the rest of the field is developed in conjunction with the findings of Dr Farouq Ali's report. His Interim report once again confirms the huge potential of an up to 1,750 barrels of oil per day operation as well as an outline plan on how this can be achieved. Once we have completed drilling, this added data will be used in Dr Ali's model to further refine the development of the Tapia Canyon oil field.

In eastern Kansas, we are close to achieving a significant strategic advantage in our gas operations which will lead to the creation of significant cash flow and earnings opportunities and this, we expect, will also increase our possible reserves.

Sefton now has in place a diversity of revenue generating operations and a strong platform for increasing levels of cash flow which will position us extremely well to achieve sustained growth and to pursue new opportunities."

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

Oil in California

Drilling

Drilling began on the first of the four new wells planned at Tapia on Wednesday 16 November. The plan is to drill and core the initial well (Yule #14) and then skid the rig over thirty feet and utilise the upper six hundred feet of the existing Yule #9 well to directionally sidetrack and re-drill to an optimal depth in the oil zone to a true vertical depth of approximately 1,140 feet. The third well planned (Hartje #19) will be drilled and cored in the eastern portion of the Hartje lease in an up-dip location; with the fourth well (Hartje #20) drilled in a down-dip location in the central Hartje lease.

Once completed and all the new wells are online in early 2012, it is expected that total oil production will rise by up to 75%, to approximately 240 barrels of oil per day (BOPD).

As was announced in the statement published on 4 November 2011, for the purposes of permitting and for efficiency of field operations, the four new wells will be drilled from existing well pads with the existing operations temporarily shut-in and surface facilities moved off during the drilling. This does mean that a total of approximately 88 BOPD will be taken offline during the drilling process, but this will be staggered through the months of November and December, and the maximum amount of time that such production will be offline is about 14 days in total.

Occidental

In the summer, Vintage Production LLC, a subsidiary of OccidentalPetroleum Corporation, the fourth-largest exploration and Production Company in the U.S,drilled two horizontal wells at their Wayside Canyon oil field which is immediately adjacent to Sefton's Tapia Canyon field. Vintage has permitted a third well at Wayside Canyon and a rig is now in place. Looking at the available records at the State of California Division of Oil Gas and Geothermal Resources (DOGGR), Sefton's engineers have noted the following in relation to the two horizontal wells.

The first well (WCU #56H) was drilled during July and August of this year and was put into production in mid-August. This well produced 5,152 barrels of oil over a 13-day period (396 BOPD) ending 31 August. The well was programmed as a horizontal completion in the northern area of the oil field and was drilled to a vertical depth of approximately 1,300 feet below surface and a measured depth of 2,861 feet. The horizontal portion of the well measured approximately 992 feet and encountered approximately 490 feet of oil-saturated sandstone.

Less is known about the production from the second well (WCU #58H). Despite having a longer planned horizontal section, the well as drilled entered and exited the target sands a couple of times along the well path. The entire horizontal section measured 1,765 feet in length. In the official Notice to Drill to the DOGGR indicates that the third well is being drilled from the same surface pad as the second well and will be the longest reach of all three wells.

Steam Flood Report

Dr. Farouq Ali has provided the Company with an Interim report on the simulation of the Tapia Canyon Steam Injection Project. The Board commissioned Dr. Ali of HOR-Heavy Oil Recovery Technologies Ltd to study and make recommendations on the potential of using thermal stimulation methods on the Tapia Canyon field in late 2010. The Original Oil in Place (OOIP) at Tapia Canyon is more than 11 million barrels of oil although the primary production to date is less than 2 million barrels. Historically the enhanced recovery rate was estimated to be 50% but if Dr Ali was able to demonstrate that the recovery rate could be improved, this would then result in proven reserves increasing from the current 3.8 million barrels of oil.

The preliminary findings of Dr Ali were extremely encouraging and identified total recoveries for the field in the range of 51% to 78% OOIP. At that stage in his overall evaluation, Dr Ali suggested a steamflood based on nine 5-spot pattern that would generate oil production potentially of up to 1,750 barrels of oil per day (BOPD). That gave Sefton the confidence to take this project further. A geological model was developed of the full field by Petrel Robertson Consulting Ltd (Petrel) which contained 50 layers and in excess of 500,000 data grid cells in order that the study and design is of the steamflood would have the greatest accuracy. Dr Ali's steamflood modelling work consists of running a series of simulation studies on this full field computer geological model of the full field at Tapia Canyon.

Dr Ali wishes to take advantage of the data that will be provided from the current drilling program at Tapia Canyon to make sure that the final study results accurately reflect the expected specific steamflood performance of the Tapia Canyon field. Out of the four wells being drilled, the two wells that lie in the centre of the field will be cored as they are expected to provide the best representation of the reservoir. The measurements of the porosities and permeabililies will allow Petrel to refine both the porosity and permeability models. In the lab, it is also possible to obtain permeability measurements in both the horizontal (Kh) and vertical (Kv) directions, in addition to Kmax (the permeability in the horizontal direction through the core with the highest permeability) so that Petrel can generate a better representation of permeability in 3D.

In addition to the conventional core analysis, Dr Ali has asked that some SCAL (special core analysis) should be carried out which would improve both the interpretation of the wireline logs and Petrel's understanding and hence modelling of saturation. At this time the first work of the well of the current drilling programme Yule #12 is in the process of being cored and the data will be analysed in the next few weeks.

In his Interim report Dr. Ali pointed out that: "My previous comment still holds that Tapia Canyon is a good reservoir for steamflooding, notably because of the relatively low oil viscosity vis-à-vis SJV (San Joaquin Valley) reservoirs. The oil recovery potential is excellent, and recovery of at least one-half of the oil in place should be possible. The matter of permeability and water saturation will be resolved shortly by a history match - it would show whether the current geological model needs to be revisited."

Gas pipeline infrastructure in Kansas

Southern Star tap

The Company has executed the Construction, Ownership, and Operating Agreement (COO) with Southern Star. This agreement provides for the construction of gas interconnect and metering facilities which will give Sefton's pipeline system (LAGGS and Vanguard) access to the Interstate Pipeline System and natural gas markets. This is a significant step forward in the pipeline program in Kansas because, now that the interconnect with the Southern Star Interstate Pipeline is achieved, it will allow Sefton to gather and sell its gas and that of others to the major markets through the USA.

Initially, the interstate tap will be capable of accepting gas volumes from 360 thousand cubic feet per day (mcfd) up to 10 million cubic feet per day (mmcfd) with current anticipated compression equipment. Construction of the interconnect and metering is likely to begin in spring of 2012 after all easement, landowner, legal, and regulatory reporting requirements are met. The estimated in-service date for the interconnect is summer of 2012. Sefton's plan is to begin moving gas through the pipeline system as soon as the system is activated; however, the agreement with Southern Star gives the Company up to one year to begin gas sales.

Once the Company's pipeline system is connected to the Southern Star Interstate Pipeline System, Sefton will eventually control all of the gas gathering, transmission, and marketing capability over an approximately 200 square mile area. The ability of another party to replicate this system would be very difficult and costly.

Certification of gas pipelines

Currently, Sefton has operationally certified the north LAGGS and west LAGGS portions of that pipeline. It is expected that the Vanguard pipeline system is likely to be operationally certified later this year. Once these two pipelines are certified, the Company will look to connect them together during 2012, in coordination with the Southern Star interconnect construction.

With the LAGGS and Vanguard pipelines connected, operational and the system connected to the Interstate Pipeline (approximately mid-year 2012), Sefton will be in a position to transport two types of natural gas: (1) (Its own gas (equity gas) and (2) gas produced by other operators (3rd party gas). Currently, Sefton is acquiring additional acreage and wellbores with the intent of recompleting existing wells and drilling new wells along the LAGGS/Vanguard pipelines, in order to produce equity gas into the pipeline system. The Company is also talking with three interested parties along the LAGGS and Vanguard systems with respect to transporting their 3rd party gas through our pipeline.

Oil and gas in Kansas

Exploration and acreage acquisition

In addition to acquiring acreage and wells along the Group's pipeline system, where development of oil and gas leases has been inactive for over 12 years due to lack of gas marketing capability, the Company is also in the process of conducting a regional exploration program to develop new reserves to increase our pipeline gas volumes. Sefton is targeting both new acreage and existing leases and utilising both the proprietary database the Company acquired from Cholla Production earlier in 2011 and its own in-house expertise.

Updating of Competent Persons Report

The Board commissioned Dr. Nafi Onat to conduct a Competent Persons Report during 2011, in which Sefton's Contingent and Prospective Resources in Kansas were placed at 1.747 million barrels of oil and 50.5 BCF of gas. This report will be updated at year-end 2011.

About Sefton Resources

Sefton Resources is an AIM-listed oil and gas exploration 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.