24th Jul 2008 07:00
Press Release
24 July, 2008
SEFTON RESOURCES, INC. ("SEFTON" OR THE "COMPANY")
UPDATE ON OPERATIONS IN CALIFORNIA
Sefton Resources, the AIM listed oil and gas production company with assets in California and Kansas, announces an update through its wholly owned subsidiary TEG Oil & Gas USA Inc. ("TEG") regarding production and operations in California.
Operations & Production Update
Tapia
Through mid July the production at Tapia oil field has been between 180-190 BOPD, an increase resulting from the two wells on the Yule lease now on production from the pilot steam programme.
Prior to "steaming", the Yule lease was producing 25-30 BOPD and currently is producing 55-60 BOPD. Although the final numbers are not filed with the state, the Group is seeing a minimum of a two to three fold increase from the wells involved in the pilot steam programme at this time.
Sefton is now formulating plans for steaming of additional wells based on evaluation of the pilot steam programme. Once the steam programme is expanded to the remaining three leases, Sefton anticipates a significant improvement in production.
Plans for additional drilling in the Tapia field are also underway. Sefton is anxious to get back to drilling later this year. New wells can now benefit from both primary and secondary (as a result of steaming) oil production.
Eureka
After working over several wells in the Eureka field, production has increased from 5-10 BOPD to 18-20 BOPD.
Further geochemical field work for the eastern portion of the Eureka property is scheduled for this coming September.
Chairman's Comment
Commenting on the current situation, Chairman, Jeremy Delmar-Morgan said "evaluation and development of the California assets is progressing well and with the initial development of our Kansas leases later this year this will broaden and expand our underlying platform of producing assets".
Enquiries:
Jeremy Delmar-Morgan, Chairman, Tel: 077 8900 4874
John James (Jim) Ellerton, CEO, Tel: 00 1 303 759 2700
David Millham, Investor Relations, Tel: 07850 949324
Nicola Marrin, Seymour Pierce Ltd., Tel: 020 7107 8000
Note: The information in this release has been compiled and reviewed by Harry Barnum, a director of Sefton, who is a qualified person for the purposes of the AIM Guidance Note for Mining, Oil and Gas Companies. Mr. Barnum has Bachelors and Masters Degrees in Geology and over 25 years of experience in the oil and gas industry. He is a registered professional geologist in the State of California.
Sefton Resources is an AIM listed oil and gas production company. Its main core area of activity is in the East Ventura Basin in California, where it owns 100% of two oil fields, Tapia Canyon (heavy gravity oil) and Eureka Canyon (medium gravity oil), both of which have over twenty years of expected production life. In addition, Sefton has over 40,000 acres in the Forest City Basin of Eastern Kansas where Coal Bed Methane gas, as well as conventional oil and gas deposits, are targets.
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