1st Aug 2006 07:01
Sefton Resources Inc01 August 2006 SEFTON RESOURCES ("Sefton") OPERATIONAL STATEMENT Sefton Resources Inc, reports that first half results to 30 June 2006 will beannounced towards the end of September. The results are expected to showcontinued progress, as the Group maintains increasing revenue generation thatwas started in the second half of last year. Production for the first six months of the year at TEG USA (a wholly ownedsubsidiary) was somewhat affected during March, April and May by one of the newwells needing repair work, as this had not been completed correctly whenoriginally drilled. Production has now returned to previous levels and the Grouphas also taken the opportunity of having a workover rig available to undertakework at its other wells within the field. Surface equipment at Tapia hascontinued to be replaced and repaired, increasing its handling capacity byapproximately 2,000 barrels. The infrastructure, all tanks, pipes and lines etcare in place and comply with the stringent California regulations. As previously announced Sefton's wholly owned subsidiary, TEG Canada has nowbeen sold for $450,000 CDN. The proceeds will be used primarily to advance thegroup's projects in Kansas. In Kansas, TEG Mid-Continent now holds 34,000 acres - 27,000 in Anderson/Franklin and 7,000 in Leavenworth. The majority of the leases are for 5 yearswith an option to renew for an additional 5 years. The leases, although mainlyCoal Bed Methane gas prospects, also have conventional oil and gas potential. Anderson/Franklin counties' 27,000 acres are mainly a Coal Bed Methane (CBM)play. There are a number of existing shut-in wells in the area that could bere-entered to test. In addition, existing pipelines together with several pilotCBM programmes are available to exploit the area's potential. Leavenworth, east of Anderson/Franklin counties, with 7,000 acres of leases,should be the easier to open up through available gas pipelines and a number ofnon-producing wells within Sefton's leases. The Directors believe that all of the above provides the Group with the fundsand the cash flow to move forward in the future. For further information, contact: John James (Jim) Ellerton, Chairman & CEO Tel: 00 1 303 759 2700 Jeremy Delmar-Morgan, Director Tel: 020 874 84066 David Millham, Investor Relations Tel: 020 779 69999 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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