Geocellular Report and California Oil Production

30 November 2012

Sefton Resources, Inc.

("Sefton" or the "Company")

Report on Geocellular Model of Tapia Canyon Oil Field

& comments on recent oil production in California

Sefton Resources (AIM: SER), the independent oil and gas exploitation and production company with interests in California and Kansas, is pleased to report on the geologic model for Tapia Canyon oil field and oil production in California.

Highlights

·; A geocellular model of the Tapia Canyon oil field ("Tapia") is complete and presentation of this 3-D model by the developers Petrel Robertson ("Petrel") is on the Company's website for review (www.seftonresources.com). This is a key component needed by Dr Ali for his initial simulation analysis which he has scheduled to be completed by year-end.

·; Net oil production figures reported to the Californian Division of Oil, Gas & Geothermal Resources ("DOGGR") for October 2012 were 3,478 barrels of oil which equates to 112 barrels of oil per day ("bopd"); compared with 103 bopd in September 2012 and 96 bopd for August 2012 - in line with previous announcements.

Jim Ellerton, Chairman of the Board said:

"The time and effort taken to produce a geologic model for our Tapia Canyon oil field which has the most up to date and accurate data has been worth the wait as it will enable Dr Ali to produce a simulation study of various development scenarios that provides the most benefit to Sefton.

As always we will report on the development of the various stages of this study as they are completed."

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

Enhanced Oil Recovery project - California

History

Sefton's Tapia Canyon oil field in California has been producing oil since the 1950s. It has always been an Enhanced Oil Recovery ("EOR") project where improved production and reserves would result from the application of current technology with respect to improved drilling practices and secondary and tertiary recovery methods. In recent years, the Company has drilled a series of new wells, re-equipped the field with new tanks, flowlines and electrics, initiated cyclic and continuous steaming pilot programmes and won awards for the excellence of its operations. In addition, a steam generator was built and pilot cyclic and continuous steaming programmes undertaken to collect vital data to test the reservoirs capability of improved oil recovery from thermal stimulation.

Once it was determined that the steam pilot programmes demonstrated the reservoir's capability and receptiveness to thermal stimulation, specialist advice was sought on the development of Tapia from Dr Farouq Ali, an expert in heavy oil recovery. In his Preliminary Report, Dr Ali determined that a final oil in place ("OOIP") recovery factor of between 51% and 78% might be possible (current engineering based on 50% recovery of OOIP). He also recommended that the field be developed in a systematic manner to bring it up to a potential level of 1,750 bopd (the current engineering development model is based on 800 bopd). The full field optimisation report by Dr Ali requires the creation of a mathematical geologic model of Tapia that could be used in simulation analyses to determine the optimum way to develop and maximise the returns from this field.

Geocellular model by Petrel Robertson

A geocellular model incorporates all known and interpreted geologic and geophysical data available. Petrel Robertson (of Calgary) was engaged to construct a geocellular model, which is now completed, tested and signed off by Sefton, Petrel and Dr Ali (also tested by an additional 3rd party). A presentation about this model is now on Sefton's website (www.seftonresources.com).

There are three critical components to this full field optimisation project: construction of the model, history production match to the field and simulation analyses for various development scenarios on the model.

Construction of the model

The most critical stage in the whole project is the construction of a geocellular model to provide an up to date realistic 3-D representation of Tapia. In all, three individual models were constructed (the Hartje lease model, the Full Field model and the Revised Full Field model) with increasing complexity as each model was improved by the incorporation of additional and valuable data. The final model turned out to be far more complex than was originally envisaged with a commensurate increase in timescale. The Company choose to spend the extra time on the construction stage to ensure that the final model utilised the most comprehensive and up to date data set available to better represent the reservoir and ensure the best results from subsequent analysis.

History match

The history match is conducted by repeatedly "tuning" the simulation software using the combined geologic, engineering and production data, until the results provide a match to historical production. Tapia has a 50 year production history and once a match is achieved, then the final simulation processing stage can begin.

Due to the greater complexity which is impacting processing time of the "history match", Dr Ali is using increased hardware and software power and looking at other alternatives to increase the speed of his analysis in order to meet his proposed time frame for the completion of the history match and the simulation studies.

Simulation studies

Simulation software is used to predict how the reservoir will behave in the future under certain scenarios. Essentially it will allow the Company to explore multiple development scenarios including: cyclic steaming, water flood, full field steaming, gas flood or other situations in order to develop a field design and production strategy to optimise the development of Tapia.

The initial simulation analysis will determine the additional amount of oil that can potentially be recovered (51% - 78% OOIP). Subsequent simulation analyses are expected to determine the most cost effective way of recovering such.

Technical aspects

The modelling and simulation analysis provides a good example of the Company's approach of employing modern technological innovations to the development of all its assets. This essential mode of operation has included: completion techniques, thermal stimulation of the reservoir, mathematical modelling and geologic mapping techniques etc. to improve discovery, recovery and increased value of our assets.

October production figures

The Company's actual net oil production figures reported to the DOGGR for October was 3,478 barrels of oil which equates to an average of 112 barrels of oil per day. In our announcement dated 9 November 2012, the Company reported that preliminary oil production data (tank data) for the month of October, 2012 indicated an estimate of 3,573 barrels of oil produced or approximately 115 bopd. At that time the Company pointed out that final number would be available after oil sales numbers were provided to TEG USA (Sefton's wholly owned subsidiary) by our oil purchaser, in which oil volume is adjusted for any shrinkage to API specification and with basic sediment and water (BS&W) removed, which typically represents a reduction of around 4%. This month's shrinkage numbers have been slightly lower than expected.

The table below shows the production numbers for the last three months, including the shrinkage percentage.

Net oil production figures reported to the DOGGR

Oil production has been increasing due to the on-going cyclic steaming programme and the operations team juggling limited fluid disposal capabilities from wells with the best oil-water ratios.

The Company is planning to resolve the most critical oil production limiting factor at Tapia by drilling a new water disposal well. A DOGGR permit is in hand for this new well and we are awaiting L.A. County to provide a permit. A rig is available once all permitting is completed.

In accordance with the guidelines of the AIM Market of the London Stock Exchange, Jim Ellerton, Chairman of Sefton Resources, Inc. a qualified geologist with over thirty years oil & gas industry experience, is the qualified person as defined in the London Stock Exchange's Guidance Note for Mining and Oil and Gas companies, who has reviewed and approved the technical information contained in this announcement. Jim Ellerton has also relied on primary information supplied by third party consultants in carrying out his review.

About Sefton

Sefton Resources is an oil and gas exploitation and production company with significant scope to grow its three projects in onshore United States that are 100%-owned and operated. The business strategy is to acquire long life, controlling interests, partially developed reserves and then to seek maximize shareholder value through asset development using the Company's own funds initially and then involve third party capital, farm-out or merger.

Currently Sefton has a market capitalisation of approximately £7 million and was valued by independent experts to have a PV(10) of $278 million (approximately £173 million) based on its assets as at the end of December 2011. The key operational focus at this time is on developing three opportunities in California and Kansas:

Enhanced Oil Recovery (EOR) projects in California

Sefton owns 100% of two oil fields In East Ventura County - Tapia (heavy gravity oil) and Eureka Canyon (medium gravity oil). Estimated 2011 year-end proved reserves stood at 3.8 million barrels. The current operational focus is to fully develop Tapia with an active well drilling and work-over programme in conjunction with the use of cyclic steam production enhancement. Sefton engaged Petrel to construct a geologic model to be utilised by Dr Farouq Ali, a recognised expert, in a thermal stimulation study to optimise production and reserve development for Tapia. Of all Sefton's operations, Tapia generates the majority of the revenues, at this time.

Exploration and Production in Kansas

In East Kansas, Sefton has a significant and growing acreage position (Leavenworth and Anderson Counties) in the Forest City Basin, where conventional oil and gas deposits as well as Coal Bed Methane (CBM) prospects have been identified. The current operational focus is in Leavenworth County where a workover and recompletion programme is under way that will see oil, gas and CBM wells brought back into production with first revenues from oil whilst additional gas assets are being assembled for the future development as all the pipelines become operational.

Natural Gas Transmission in Kansas

Three gas pipelines have been acquired by Sefton. The LAGGS pipeline in Leavenworth County has been fully refurbished and is now connected to the Southern Star Interstate Pipeline system which allows sales outside the local Kansas market. Plans are to join the Vanguard pipeline to the LAGGS system in Leavenworth County which will increase the scale of this gathering system. This means Sefton is able to transport its own gas as well as third party gas to market and generate additional revenues.

A third pipeline in Anderson County is planned to be connected to an interstate pipeline system in the future to provide additional opportunities for redevelopment of oil, equity and third party gas.