Operational Update

02 May 2012

Sefton Resources, Inc.

("Sefton" or the "Company")

Operations Update

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 its operations.

Highlights

Oil & Gas in Kansas

·; Pipeline system on schedule to flow first gas in the summer

·; LAGGS sales line has been completed

·; 40-50 oil & gas wellbores for the recompletion program have been leased, in the process of being leased or being acquired

·; Discussions continue with potential suppliers of third party gas

·; Sales agent has been appointed to market gas

·; Exploration program is underway

Oil in California

·; Remedial work by workover rig has already allowed oil production to increase to 142 BOPD with as much as 220 BOPD recorded in recent days

·; Four more well workovers expected to lead to a further increase in production

·; Cyclic steaming ongoing with the Yule #5 well showing a 200% improvement in production post-steaming

·; Dr Farouq Ali's full field steam flood report on schedule to be received by the Company in June

Administration

·; Inability to reach a mutually beneficial contract has led to the resignation of the Company's CFO who will continue to act as Financial Consultant for Sefton.

Research coverage

·; Hardman & Co has now initiated research coverage and the report can be found on our website www.seftonresources.com 

Jim Ellerton, Chairman of the Board said:

"Activating the Leavenworth County pipelines (LAGGS and Vanguard) will generate an additional stream of cash flow and increase reserves. The recompletion program will see oil, gas and CBM wells brought back into production and the leasing program is being accelerated with the plan to double our acreage in Kansas. Oil production at California is now heading towards expected levels with further increases expected from the ongoing well workovers and cyclical steaming programs."

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

Oil & Gas in Kansas

Southern Star Connection

Installation and welding of the LAGGS sales line was completed on 10 April 2012. This will allow the LAGGS line to flow gas into the Southern Star Interstate Pipeline once the interconnect is installed, a job which is timetabled to be completed by Southern Star in summer 2012. A one acre site has been cleaned up and all the excess equipment removed from the site in preparation for the compression and dehydration units.

Recompletion Program

The team on the ground in Kansas have identified recompletion wellbores and additional leases for the LAGGS recompletion program. The recompletion program is scheduled to commence once the pipeline is able to move gas, with 40-50 wellbores currently identified for recompletion.Once it can be demonstrated that gas can get to market some contingent resources and possible reserves are expected to move to the proved reserve category.

Acquisitions

Meetings have taken place with the owners of acreage in the vicinity of the LAGGS pipeline, which has both the potential for oil, conventional natural gas and coal bed methane gas (CBM) production, which may result in a number of small bolt-on acquisitions, to go with the Company's existing acreage/wells.

Appointment of gas sales agent

A consulting contract has been signed with Western Retail Energy Company (WREC) who will act as a natural gas marketing agent for the sale of the Company's Kansas natural gas to interstate pipeline facilities. WREC will also, subject to the Company's approval, negotiate gas transportation and marketing agreements with third party gas producers.

Exploration

The Company is continuing our exploration study over the greater Leavenworth areas and surrounding counties. We have added a consulting geologist to the study to work with project engineer Dr Nafi Onat. We will continue to acquire additional exploration leases as the results of this study dictate. The Company's exploration program has clear targets which are in order of priority are: oil with CBM potential, CBM within existing well-bores that is yet to be exploited and lastly conventional gas plus CBM.

Oil in California

Production

At the present time there is a shortage of both drill rigs and workover rigs in California which has led to a delay to the start of our workover program. However, a workover rig is currently on site and so far the Company has replaced pumps on five wells. As a result, production at the Tapia Canyon oil field has increased to about 142 barrels of oil per day (BOPD) (average production for the past 6 days), with as much as 220 BOPD being recorded. There is currently one well (Lackie #A-4) that has gone down in the interim and while not in production at this time, this well is scheduled for work in the coming week. Sefton has planned for up to four well workovers on the Hartje lease. These include replacing corroded liners with all stainless steel wire wrapped screens in Hartje #7, #14 and #17, and recompleting the Hartje #6 well in a slightly deeper, fault-repeated Yule oil sand section that was not completed in the original well, but was logged showing oil saturated sand. This work is expected to lead to a further increase in production.

Cyclic steaming

Earlier on this year the Company recommenced cyclic steaming at Tapia. The post steam oil cut in well Yule #5 has improved from 2% to 10%, yielding a daily rate of about 18 BOPD which represents a 200% improvement on the pre-steam rate. Sefton has been steaming the Hartje #12 well in the central area of the oilfield and once the planned 10,000 to 12,000 barrels of steam have been injected, the well will be brought back into production following a 10-day heat soak. The steam generator will then move to the Yule well pad and stimulate the two new Yule wells that were drilled at the year-end, after these two wells have been acidized.

Full steam flood report

Core Lab is on schedule for completing the bulk of the remaining analyses on the two cores, which includes analysis of the relative permeability, capillary pressure, vertical permeability, cap rock tensile strength and X-ray diffraction (clay identification) and is scheduled to be received in early May. This data will be used by Petrel to complete their final adjustments to this phase of the geologic model, which will then be used by Dr. Farouq Ali to run his simulation analysis, which is scheduled for May with his final report due in June. This report will be key in our planning for the further development of the Tapia Oilfield. Dr Ali's preliminary study suggested that a full steam flood of the field could generate a recovery of between 51-78%. Certainly, if the report can demonstrate a recovery factor in excess of the current 50%, Sefton reserve base will be increased. Until this report is received the exact steam development pattern, well spacing, steam facilities sizing and hence, detailed capital requirements can only be estimated.

Administration

The Company has been unable to agree terms and other responsibilities with Bill Brand, who was recently appointed CFO. Bill is going to continue to act as Financial Consultant to Sefton, until a CFO replacement can be appointed.

About Sefton

Sefton Resources is an AIM-listed oil and gas exploration and production company. Its main areas of activity 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 in addition to three pipeline/gas gathering systems, where coal bed methane, as well as conventional oil and gas deposits are targets.