Kansas Exploration & Production Operations Report

15 November 2012

Sefton Resources, Inc.

("Sefton" or the "Company")

Kansas Exploration & Production Operations Report

Sefton Resources (AIM: SER), the independent oil and gas exploitation and production company with interests in California and Kansas, is pleased to announce an update on oil & gas exploration and production ("E&P") operations in Kansas via its wholly-owned subsidiary TEG MidContinent Inc ("TEG MidContinent").

Highlights

·; The Company has closed on the acquisition of certain oil and gas properties in Leavenworth County, Northeast Kansas from Dark Horse Operations (the "DHO Assets" - further to the announcement of the 25 September 2012). This is for an immediate 42% working interest ("WI") with the remaining 58% WI being acquired upon title work being completed.

·; TEG MidContinent becomes the operator of the DHO Assets, which includes 14 well bores available to be returned to production plus an all-important water disposal system.

·; With the ability to dispose of water through the water disposal system and associated gas through the TEG Transmission LLC pipelines, the Company can now expand the multiphase oil & gas development program for this area in Kansas.

·; At this time, the Company has targeted six initial areas for immediate development, which includes 46 oil & gas wells (100% WI on 34 wells and 42% WI on 14 wells).

·; Future additional development areas will be based on completed engineering/geology field studies and our own geological mapping techniques.

Jim Ellerton, Chairman of the Board said:

"Sefton is moving rapidly towards the important milestone of establishing consistent oil production at Kansas with a programme of workovers and recompletions planned over the coming months. The second revenue stream of E&P in Kansas is beginning and is expected to grow significantly over the next few years. Production data will be reported

as operations develop and provide a stabilised production revenue stream ."

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

Kansas Exploration & Production

Acquisition of Dark Horse Operations

Sefton's wholly owned subsidiary TEG MidContinent has closed on the purchase and sale agreement acquiring operations and an initial 42% WI (36.225% net revenue interest ("NRI")) in a property with 14 existing well bores and accompanying water disposal system in proximity to the LAGGS pipeline system owned by its sister subsidiary, TEG Transmission LLC (see announcements of 31 October and 2 November 2012). TEG MidContinent will acquire the remaining 58% WI (50.025% NRI, giving a total 86.25% NRI) upon title work being completed (this work involves curing outstanding items so free and clear title is transferred on the remaining 58% WI). The lease is located in Leavenworth County, Northeast Kansas and has been acquired from Dark Horse Operations for an initial $75,000, with further payments totalling $125,000 once 100% WI and 86.25% NRI are transferred to TEG MidContinent.

With the purchase of this interest, TEG MidContinent has become the registered operator of the DHO Assets and believes that the 14 wells can be brought back into production and further developed. Oil in this area comes with associated gas and water. Now that the Southern Star-LAGGS interconnect has become operationally certified the associated gas can be put into the LAGGS pipeline system, while water can be disposed through the newly acquired water disposal system on the DHO Assets. This will help to kick-start consistent commercial oil production from not just this property but also an additional 5 surrounding areas that TEG MidContinent plans to develop in proximity to the LAGGS/Vanguard pipeline system.

Following the acquisition, the plan is to carry out additional workovers which involves the removing and replacing of rods, upgrading production equipment and returning the wells to production. Further production improvement options such as recompletions and development drilling will be analysed. Recompletion is where an existing well bore is completed in different zones to that in which the well was originally completed, whilst development drilling involves new step-out wells from the existing wells.

Development strategy

There are many small oil and gas fields across Northeast Kansas past their prime production periods that have produced hundreds of thousands of barrels of oil, but produce at marginal rates today. These fields were prematurely abandoned during the 1990s because of low oil prices and scattered operations of small independent operators without the ability to market gas and associated gas.

At the current stage of operations, TEG MidContinent has a total of 42 oil wells and 4 gas wells located in six discrete areas in proximity to the LAGGS/Vanguard pipeline system where the operations team is currently working with the goal of initially producing oil on a consistent basis. So far 4 wells have been worked over, 2 wells are being worked over and the plan over the coming months is to workover an additional 24 wells. Workovers are expected to cost circa $10,000 to $15,000 per well, recompletions circa $35,000 per well, and new well drillings circa $150,000 per well.

Oil & gas production potential

Competent Person Dr Nafi Onat has made a study of the oil fields in Northeast Kansas for Sefton, from which detailed information was announced on 12 March 2012. Below are some of the key points that he has made on the potential of this area for oil and gas production.

Analysis of 320 wells on 23 McLouth fields reveals initial average production was approximately 27 bopd and 350mcfg per well during the first month of production. Based on completion reports and deliverability tests, initial gas producing fields varied from 150 mcfg to 2mmcfg per day.

To the best of his knowledge all the cumulative production numbers refer to the primary production. These fields are excellent targets for converting to waterflood operations. Certainly, during the last five years some leases have been water flooded and the results seem very successful.

The combination of Dr Onat's field studies, together with TEG MidContinent's geologic exploration maps are expected to expand operations to that of drilling for new fields, over time

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 Canyon (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 Canyon with an active well drilling and work-over programme being undertaken in conjunction with the use of cyclic steam recovery to boost production and reserves leading to the ultimate goal of a full field steam flood development programme. As part of this final phase, Sefton has engaged Petrel Robertson to construct a geologic model, on which Dr Farouq Ali, a recognised expert, is undertaking a study on a full steam flood development programme for the Tapia field and his report is expected shortly. Tapia is the most advanced of Sefton's operations and generates revenues.

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 planned 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 nationally. 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.