8th Jul 2013 07:00
08 July 2013
Sefton Resources, Inc.
("Sefton" or the "Company")
Grant of Share Options
Sefton Resources, Inc. (AIM: SER), the independent oil and gas exploitation and production company with interests in California and Kansas, announces that the Board has approved the granting of new share options over 32,000,000 new common shares of no par value in the Company ("Common Shares") to its directors, certain employees and other associates in accordance with the Company's shareholder approved stock option plan ("Options"). The Options have an exercise price of 0.625 pence per Common Share, a term of 5 years beginning 5 July 2013 and vest in equal tranches over a three year period. This option price represents a 25% premium to the average closing mid-market price of the Common Shares over the prior ten trading days.
The number of Options granted to directors, together with the resultant beneficial interests of the directors in the Common Share capital of the Company, are as follows:
Director | Number of Options awarded | Total number of Options held following the award | Common Shares currently held | Common Shares currently held as a percentage of the Company's issued share capital |
Jim Ellerton Chairman | 12,000,000 | 24,116,667 | 36,656,738 | 5.34% |
Mark Smith Non-Executive Director | 4,000,000 | 8,000,000 | 3,462,732 | 0.50% |
Tom Milne Non-Executive Director | 4,000,000 | 4,000,000 | nil | - |
Keith Morris Non-Executive Director | 4,000,000 | 4,000,000 | nil | - |
The Company has a total of 685,915,053 Common Shares in issue. The new Options granted would represent 4.46% of the Common Share capital of the Company if the new Options were exercised in full. The fully diluted Common Share capital of the Company is now 752,331,719 Common Shares.
For further information please visit www.seftonresources.com or contact:
John James Ellerton, Chairman of the Board | Tel: 001 (303) 759 2700 |
Dr Michael Green, Investor Relations | Tel: 0207 448 5111 |
Nick Harriss, Nick Athanas, Allenby Capital (Nomad) | Tel: 0203 328 5656 |
Neil Badger, Dowgate Capital Stockbrokers (Broker) | Tel: 01293 517744 |
Alex Walters, Cadogan PR | Tel: 07771 713608 |
About Sefton
Sefton Resources is an oil and gas exploitation and production company with significant scope to develop its three major areas of interest in onshore United States. Sefton's business strategy is to acquire long life, partially developed reserves with controlling interests, and maximize shareholder value through asset development using the Company's own funds initially then involve third party capital, farm-out or merger. At this time, Sefton operates all its assets, the majority of which are 100% owned.
Currently Sefton has a market capitalisation of approximately £4 million and a higher PV(10) value for its unrisked proved reserves and unproved resources. The key operational focus at this time is on developing three revenue sources from both California and Kansas:
Enhanced Oil Recovery (EOR) projects in California
Sefton owns 100% of two oil fields in the East Ventura Basin, California - Tapia (heavy gravity oil) and Eureka Canyon (medium gravity oil). The current operational focus is to develop Tapia with an active well drilling and work-over programme in conjunction with the use of cyclic steam production enhancement. Sefton engaged Petrel Robertson Consulting to construct a geologic model to be utilised by Dr Farouq Ali, a recognised expert, in a thermal simulation study to fully optimise production and reserve development of the Tapia field. Tapia generates the majority of Sefton's revenue at this time and has 2012 year-end estimated Proved Reserves (P1) of 3.5 million barrels.
Natural Gas Transmission in Kansas
Three gas pipelines have been acquired by Sefton in North East Kansas. The LAGGS pipeline in Leavenworth County has been fully refurbished and is now connected to the Southern Star Interstate Pipeline system which allows gathering, transportation and sales of natural gas outside local Kansas markets. Plans are to join the Vanguard pipeline to the LAGGS system (Leavenworth County) which will increase the scale of this gathering system. This means Sefton will be able to transport its own and third party natural gas to a national market and generate additional revenues. A third pipeline in Anderson County is planned to be connected to an interstate pipeline system in the future, which will provide additional opportunities for redevelopment of oil and natural gas.
Exploration and Production in Kansas
In North East Kansas (Forest City Basin), Sefton has a significant and growing acreage position (Leavenworth and Anderson Counties) where conventional oil, gas and coal bed methane (CBM) prospects have been identified. The current operational focus is in Leavenworth County where a workover, recompletion, surface equipment replacement and leasing programme is under way that will see oil, gas and CBM wells brought back into production. Initial revenues are from oil whilst additional gas assets are being assembled for future development as pipelines become operational. Estimated 2012 year-end Proved Reserves (P1) for the Leavenworth portion of our Kansas assets are 82,653 barrels of oil and 2.06 Bcf of gas; and total unrisked Proved Reserves and Unproved Resources of 832,485 barrels of oil and 14.4 Bcf of gas for the same area.
Related Shares:
SER.L