Interims and Restoration to Trading

Sefton Resources, Inc.

("Sefton" or the "Company")

27 September 2013

Half Year Results for the six months ended 30 June 2013, Operations Update for California and Kansas and

Return from Suspension

Sefton Resources, Inc. (AIM: SER), the independent oil and gas exploitation and production company with interests in California and Kansas today announces its half year results for the six months ended 30 June 2013 and provides an update on operations.

Highlights

Financials

· Revenue was US$2.23 million from oil sales of 22,975 barrels of oil in the first half of 2013 (US$2.28 million from 21,652 barrels of oil: 1H 2012) despite lower oil price and restricted oil production in California.

· Gross profit was US$1.35 million in the first half of 2013 (US$1.34 million: 1H 2012).

· Income before non-cash charges, interest and taxes was US$0.245 million in the first half of 2013 (US$0.365 million: 1H 2012) primarily as a result of increases in General & Administrative expenses due to an enlarged Kansas operation, litigation costs (US$0.101 million) and one-off California tank repair costs (US$0.168 million).

· Net assets grew to $20.478 million at 30 June 2013, an improvement from $18.755 million at 30 June 2012.

California Update

· Oil production in California reported to the DOGGR for August 2013 was 5,096 barrels (an average of 164 barrels of oil per day). 5,283 barrels of oil were sold in August realising approximately US$536,000 of revenue.

· The updated resource and engineering report on the California assets as of 1 September 2013 reports a Net Present Value discounted at 10% (NPV) of US$108.317 million from 3.562 million barrels of proved oil reserves (P1) (NPV of US$107.428 million as at 31 December 2012).

· Dr Ali's thermal simulation report for the Tapia Canyon field (Tapia) is being revised to ensure that the report provides all scenarios required by Sefton to optimize the full development of this oil field.

· Work continues on addressing the water disposal limitations at Tapia, through the acquisition of a nearby lease, with plans to convert two existing marginal oil wells into water disposal wells.

· With improved production, updated engineering and the forthcoming finalization of Dr Ali's report, the Company is exploring opportunities with entities that possess California steaming expertise about how to maximise the value in the Tapia field.

Kansas Update

· Oil production in Kansas is currently being maintained at 450 - 500 barrels a month, while workovers of existing wells continue and necessary infrastructure is installed.

· An updated resource and engineering report on the Kansas assets as of 1 August 2013 reports 80,580 barrels of oil and 2.67 Bcf of gas of Proved Reserves (P1) with an a NPV of US$5.69 million (NPV of US$ 5.66 million as at 31 December 2012).

· Construction of a three mile section of pipeline joining the Vanguard pipeline to the LAGGS-Southern Star system is ongoing with surveying currently underway and construction scheduled to begin later this year.

· Joint venture negotiations with several entities have reached a stage where the testing of gas is underway to determine amounts of gas that can be put into the Company's transmission facilities.

Corporate

·  The Company agreed for trading in its shares be suspended on 4 September 2013 due to unauthorised publication of confidential information that was altered and then published on a website.The Company has now taken steps to correct this problem and is undertaking investigations.

· The Board is currently undertaking a strategic review in order to consider the best way of delivering future shareholder value.

Trading Restoration

· The Company is pleased to announce that following the release this morning of the interim results for the 6 months to 30 June 2013, the Company's common stock of no par value will return from suspension and trading in the Company's shares on AIM will re-commence with effect from 7:30am today, 27 September 2013.

In summary,

The Company's revenue and production is increasing. At the half year stage of 2013, the Company was cash flow positive, bank compliant and with cash on hand despite certain limitations (production restrictions and one-off general & administration costs (G&A) and lease operating expenses (LOE)) and is exploring opportunities with various entities to fully develop the Company's assets.

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

Financial review for the six months ended 30 June 2013.

Revenue in the period to 30 June 2013 was slightly down (2.2%) on the revenue recognised in the comparative period, despite an increase of 6% in volumes of oil sold from 21,652 barrels in the first half of 2012 to 22,975 barrels in the first half of 2013. The reduction in revenue was due to the average selling price decreasing from $105 per barrel in the comparative period to $97 per barrel in the period to 30 June 2013.

Cost of sales (consisting of lease operating expense and royalties) decreased by 6.1% from $0.945 million in the period to 30 June 2012 to $0.887 million in the period to 30 June 2013.

Gross profit, as a result, is $1.346 million - compared to $1.338 million in the period to 30 June 2012.

General and administrative expenses have increased in the 2013 period to $1.080 million compared to $0.955 million in the 2012 period. This increase is largely due to exceptional legal (US$0.101 million), California tank repair expenses (US$0.168 million) and increased G&A costs due to an enlarged Kansas operation incurred during 2013.

Retirement obligation expenses increased slightly to $0.021 million compared to $0.018 million in the comparative period.

The depletion, depreciation and amortisation charge has increased by 28.8% to $0.277 million in the period to 30 June 2013, compared to $0.215 million in the period to 30 June 2012. This is due to the depletion charge which is calculated on a units of production basis (% of estimated reserves) being recorded against a higher asset base at 30 June 2013 compared to 2012.

Share-based payments are identical to the comparative period as no new options were issued before 30 June 2013.

A small amount of finance income ($4,000) was reported in the period to 30 June 2013 relating to income from investments made by the Company earlier in the year.

Finance costs have increased however - from $0.109 million in the 2012 half year period to $0.120 million - the increase being due to interest payable on loan notes issued by the Company during 2012.

A net loss of $0.253 million has been reported compared for the first half of 2013 with a loss of $0.064 million in the period to 30 June 2012 - and a profit of $0.021 million in the 2012 full year.

At the end of the period, total liabilities were $8.144 million, which although slightly increased from 31 December 2012, reflect a decrease compared to the total of $8.260 million at 30 June 2012.

Cash and cash equivalents were $0.644 million at 30 June 2013, compared to $2.527 million at 30 June 2012.

Whilst net cash from operating activities was $0.960 million in the period to 30 June 2013, is higher than $0.042 million recorded in the comparable period of 2012, this is predominantly due to changes in working capital.

Cash invested in capital additions during the first half of 2013 was $1.694 million - compared to $2.752 million in the period to 30 June 2012.

Net proceeds (after expenses) from the issue of new shares in the first half of 2013 were $0.967 million - compared to $2.951 million in the period to 30 June 2012.

There have been no new debt instruments issued in the first half of 2013 (new loan notes of $0.129 million issued in the period to 30 June 2012), and repayments of loans amounted to $0.350 million - compared to repayments in the comparative period of $0.300 million.

Total cash outflows in the first half of 2013 amount to $0.303 million compared to $0.036 million in the comparative period in 2012 - and $1.616 million for the full 2012 year.

Summarised financial information (unaudited)

Operations Update

California

Sefton's operations in California lie in the East Ventura Basin where its wholly-owned subsidiary, TEG Oil & Gas USA, Inc ("TEG USA"), operates both Tapia Canyon ("Tapia"), an oil field producing heavy gravity (17°-19° API) oil, and Eureka Canyon field ("Eureka"), which produces medium gravity (28° API) oil.

Operations

Production in the first six months of the year totalled 22,669 barrels of oil which represents a 4% improvement on the 21,755 barrels of oil produced in the first half of 2012.

Net oil production figures reported to the DOGGR

Since the end of the half year period, oil production has further increased on the back of workovers and the ongoing cyclic steaming programme. Oil production reported to the California Division of Oil, Gas & Geothermal Resources ("DOGGR") for July and August was 5,308 barrels and 5,096 barrels respectively. This represents a monthly average of 171 and 164 bopd respectively for July and August. Gross revenues for these two months combined has totalled in excess of US$1 million.

Cyclic steaming

Cyclic steaming operations at Tapia are currently focused on the Hartje lease which has the majority of the reserves attributed to it in this field. This is the first time this lease has been cyclic steamed and currently the Hartje #19 well has been brought back on production and the Hartje #11 well is being steamed. We expect current production levels to be maintained as a result of the ongoing cyclic steaming of the Hartje lease.

Water disposal system

In early 2012, one of the two injector wells suffered a liner failure and repairs proved unsuccessful. Having a single disposal well for the oilfield has limited production for the past year. The Company is pursuing an agreement to acquire a neighbouring lease which presents the opportunity for converting existing wells into water disposal wells. Being able to handle more fluid and dispose of more water would allow oil production to rise at Tapia.

Thermal simulation report (by Dr Ali)

A draft version of the thermal simulation report has been received and the California operations team is in discussions with the author towards finalizing this report. The study was designed to provide the Company with recommendations for the most effective steam flood development, as well as key engineering parameters including the size of steam generator(s) needed for an improved and enlarged intermediate cyclic steaming programme.

The study indicates that approximately 1 barrel of oil was recovered for each 2.5 barrels of steam injected in the cyclic programme. This is on par with other steam flood projects in California and appears to be a good engineering fit. The report identifies a steam generator sized at 50 MMBTU/hr (3,500 barrels of steam per day) will be necessary to implement the intermediate cyclic steam programme. The cost of such a piece of equipment presently is approximately $2 million and will allow the steaming of more than one well at a time and deliver higher quantities of steam for a longer period of time. The sizing and design of high pressure pumps to deliver steam to the subsurface will need to be addressed as well as expanded water treatment.

The study also indicates that as a result of the field's complexity (reservoir, faults, water drive etc.) the full development will be modular in nature, applying differing steaming techniques to the various fault blocks.

Once the final thermal simulation report has been received, the full capital requirements can be estimated. These will be combined with an economic re-evaluation of the project, including an implementation timeline and expected ultimate recoveries of oil in place.

Engineering 

The independent engineering and resource report produced by Reed W. Ferrill & Associates, Inc. outlines Proved Reserves (P1) of 3.562 million barrels of oil as of 1 September 2013. As in his past reports, Reed W. Ferrill has continued to use a recovery factor 50% of original oil in place (OOIP) when calculating the reserves; ahead of the receipt of the final report from Dr Ali which might increase the recovery factor and therefore the reserves.

The present value of the estimated future net cash flows from these Proved Reserves (P1) before income taxes using a 10% discount rate was calculated to be US$108.317 million. This is based on US GAPP reporting, with constant prices and costs in which an oil price of US$99 per barrel was used (the average price for the previous twelve months).

Economic Analysis of TEG USA's California Proved Reserves (P1)

as of 1 September 2013

At US GAAP price of $99 per barrel

 The updated engineering for California reserves (P1) as at 1 September 2013 reflects the increase in production realised from the ongoing pilot cyclic steaming programme with an increased in Proved Developed Producing (P1) reserves and the NPV10 value, even though a lower oil price was used and production limitations from water disposal and heat related issues are still being addressed.

Comparison with TEG USA's 2012 year-end Proved Reserves (P1)

with current 1 September 2013 Proved Reserves

Oil price of $99 for economic analysis of 1 September 2013 and $102 for year-end 2012 economic analysis.

The principal author of the report, Reed W. Ferrill Jr is a Professional Engineer registered in the State of Colorado with over 45 years' practical experience in the field of Petroleum Engineering. He is a graduate of the Colorado School of Mines, Golden, Colorado with both a Bachelors and Master degrees in Petroleum Engineering. Reed's experience includes involvement in the engineering of heavy oil fields and working with the energy departments of several financing institutions.

Further Development of Tapia

With updated engineering, increasing production, continuing good results from at least a year of cyclic steaming and the pending Dr Ali final report, the Company has initiated discussions with several third party entities with California heavy oil production and steaming expertise. The Company is exploring options for how best outside capital and additional thermal stimulation experience can be brought to this field's development for the benefit of Sefton.

Kansas

Sefton's oil and gas interests in N.E. Kansas (Forest City Basin) are undertaken through two wholly-owned subsidiaries, TEG MidContinent, Inc. ("MidContinent") and TEG Transmission LLC ("Transmission").

MidContinent's assets include conventional oil and gas leases, and coal bed methane (CBM) leases that are located in and around Anderson and Leavenworth counties, while various transmission assets including three pipeline systems, Vanguard and LAGGS in Leavenworth County and Waverley in Anderson County, are within Transmission.

TEG Midcontinent (E&P)

Production

Midcontinent's oil production in Kansas began in late 2012 and through the first half of 2013, 1,609 barrels were produced and 1,464 barrels were sold. Production has been rising throughout this period and in August 2013 was approximately 500 barrels of oil. This production is established from the workovers, enhancement and re-completions of existing wells and the installation of surface and downhole equipment to produce, store and ship oil while also disposing of water and any associated gas. Future production increases will come from additional workovers and step-out drilling within the areas currently being developed.

The Kansas leasing program continues based on the engineering study by consultant Dr Nafi Onat and the Company's own geological maps. The latest engineering report is now being used to plan the next stage of development and to propose a plan for enhancement and offset drilling locations.

Engineering 

The independent engineering and resource report produced by Sure Engineering, outlined Proved Reserves (P1) and unproved resources in Leavenworth County as of 1 August 2013. The report also estimates the PV10 value of future cash flows from Midcontinent's oil and gas proved reserves and unproved resources in Leavenworth County, Kansas at this time of US$29.90 million.

Summary of Economic Analysis of TEG Midcontinent's

Leavenworth County resources as of 1 August 2013

(McLouth, CBM and Mississippian limestone)

Using a constant oil price of $85 per barrel and a gas price of $3.50 per MCF escalated at 10% per year until a maximum price of $6.00 per MCF is reached.

This represents an increase on the comparable value of US$25.99 million that was reported as at the end of 2012 as is demonstrated in the table below.

Comparison with Economic Analysis of TEG MidContinent

Leavenworth County's resources at 2012 year-end

Using a constant oil price of $90 per barrel and a gas price of $3.50 per MCF escalated at 10% per year until a maximum price of $6.00 per MCF is reached.

Sure Engineering carried out this study and the principle author is Dr. Nafi Onat, a Petroleum Engineer with over 30 years of industry experience. He has held positions with major oil and gas companies including Mobil and Wenner Petroleum. In 1997, after nine years of consulting, Dr. Onat founded Sure Engineering, LLC, a consulting company specializing in petroleum and natural gas engineering. He received his Ph.D. in Petroleum Engineering in 1975 from Colorado School of Mines, Golden, Colorado.

TEG Transmission (pipelines)

Pipeline (Leavenworth County)

Testing and certification of the Vanguard pipeline has now been completed along with the final permits and easements for the new three mile section of pipeline that will join the Vanguard pipeline to the LAGGS-Southern Star system. The land is currently being surveyed and construction is scheduled to begin once the crops have been harvested in October.

The Company is keeping Southern Star informed concerning the timing of the joining of the LAGGS and Vanguard pipelines as well as the quantity of gas that is expected to flow through the system.

Joint ventures

In addition to identifying the Company's own wells for gas, an increasing number of potential joint venture partners are now emerging. Negotiations are ongoing with a number of local entities to transport their gas through the Company's pipeline system and have now reached the testing stage, in which volumes and quality of gas is being determined as part of these negotiations.

In accordance with the guidelines of the AIM Market of the London Stock Exchange, Jim Ellerton, a consultant to the Company, 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 staff and third party consultants in carrying out his review.

Unaudited consolidated statement of comprehensive income

Unaudited consolidated balance sheet

Unaudited consolidated statement of changes in equity

Unaudited consolidated statement of cash flows

Notes to the Unaudited Financial Information

for the 6 months ended 30 June 2013

Accounting policies

The interim financial information in this report has been prepared on the basis of the accounting policies set out in the audited financial statements for the year ended 31 December 2012, which complied with International Financial Reporting Standards as adopted for use in the European Union ("IFRS").

IFRS is subject to amendment and interpretation by the International Accounting Standards Board ("IASB") and the IFRS Interpretations Committee and there is an on-going process of review and endorsement by the European Commission.

The condensed financial information for the period ended 31 December 2012 set out in this interim report has been extracted from the full audited financial statements. These financial statements can be viewed at www.seftonresources.com .

1. Loss per share attributable to the equity shareholders of the Company

As at 30 June 2013, 30 June 2012 and 31 December 2012 the options in issue are not dilutive under IAS 33, Earnings per Share, because they would have the effect of decreasing the loss per share. As such there is no difference between the basic and dilutive loss per share at these dates.

2. Share Capital

During the period to 30 June 2013, 108,333,333 Common Shares were issued at 0.6p raising £650,000.

During the comparative 6 month period to 30 June 2012, 114,285,714 Common Shares were issued at 1.75p raising £2 million.

Following the issue of Common Shares in the period to 30 June 2013, there were 685,915,053 Common Shares in issue.

Subsequent to the balance sheet date, 16,000,000 Common Shares were issued in August 2013 at 0.441p raising £70,500.

Following this issue of Common Shares, there are 701,915,053 Common Shares in issue.

About Sefton

Sefton Resources is an oil and gas exploitation, transmission 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 £2.5 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 2013 half-year year-estimated Proved Reserves (P1) of 3.562 million barrels in California.

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. 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 2013 half-year Proved Reserves (P1) for the Leavenworth portion of our Kansas assets are 80,580 barrels of oil and 2.67 Bcf of gas; and total unrisked Proved Reserves and Unproved Resources of 956,178 barrels of oil and 14.25 Bcf of gas for the same area.