SER.L Regulatory News (SER)

15 February 2013

Sefton Resources, Inc.

("Sefton" or the "Company")

New water disposal well fully permitted, California oil production

and an update on the thermal stimulation 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 the permitting and drilling of the Hartje replacement water disposal well, oil production from California and the thermal stimulation report of the Tapia Canyon oil field.

Highlights

·; All permits are now in place for the drilling of the new water disposal well Hartje #21 and a rig has been located that is available in March 2013.

·; Preliminary oil production data (tank readings, before estimated 4% shrinkage) for California has been compiled for the month of January 2013 with 3,507 barrels of oil compared to 4,124 barrels actually produced for the month of December 2012. Production was restricted during January 2013 by Californian State mandated tank testing and repairs. The new Yule lease wells continue to make progress after acidization and steaming.

·; Dr Farouq Ali believes that work on the history match stage of the thermal simulation study will be completed soon. He has advised that he intends to complete this part of the study by the end of February 2013 and by that time expects to have begun the cyclical steaming matches and various steamflood scenarios.

Jim Ellerton, Chairman of the Board said:

"I am pleased to report that the new water disposal well at Tapia is now fully permitted. Water disposal has been the critical limiting factor in optimizing production at Tapia and the Company can now look to the benefits that upgraded water disposal facilities coupled with the progress that has been witnessed following the acidization and cyclic steaming of the Yule wells.

Further progress has been made towards the completion of the thermal simulation study on Tapia which will allow the value of the Enhanced Oil Recovery (EOR) project at Sefton's 100%-owned Tapia Canyon oil field to be maximised in negotiations with third parties to scale up the size of this project to its ultimate potential."

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

Drilling permit for water disposal well

The Company has completed the permitting for the drilling of the new water disposal well Hartje #21. A rig has been located that is available in March 2013 and negotiations on the drilling contract are proceeding. The drilling of this water disposal well will resolve the most critical oil production limiting factor at Tapia.

California oil production

Preliminary oil production data (tank data) has been compiled for the month of January 2013. After a 4% shrinkage number is applied, tank data indicates an estimate of 3,367 barrels of oil produced or approximately 109 barrels of oil per day (BOPD) compared with a final production figure of 133 BOPD in December 2012. Production was restricted during January 2013 by tank testing and repairs that were required by new State of California regulations for operators with inspection overseen by the Californian Division of Oil, Gas & Geothermal Resources ("DOGGR").

The regulations required that tanks be emptied of liquids to conduct wall thickness measurements which have disrupted oil production during this process, as wells have been shut in for partial or complete day cycles. Tanks on the Hartje, Lackie/Snow, Yule and Eureka facilities were tested in January and this work has continued into the month of February with 3 tanks remaining to be tested and repaired.

Net oil production figures reported to the DOGGR

Final production numbers will be available after oil sales numbers are provided to TEG USA (Sefton's wholly owned subsidiary) by our oil purchaser (expected in mid-February), in which oil volume is adjusted for any shrinkage to API specification and with basic sediment and water (BS&W) removed. The final production numbers will then be submitted to the DOGGR for posting on its website. The table above shows the production numbers for the past six months, including the shrinkage percentage.

Production from the wells on the Yule lease has continued to show good progress following the acidization and steaming of the new Yule lease wells. The monthly production from the Yule lease over the past 16 months is shown in the following chart.

Month production from the Yule Lease - Tapia field

Cyclic steaming

The steam generator is now injecting steam into the wells on the Snow lease. Snow #3 well has just returned to production after steaming and although still producing at a 98% water cut due to steam injection it is encouraging that post steaming the well is averaging 200 barrels of gross fluid (water and oil) per day compared with 33 barrels of total gross fluid per day prior to steaming.

Thermal stimulation report

Dr Farouq Ali believes that he will soon complete the history match stage of the thermal simulation study. The history match involves fine tuning of the model to ensure that the model can actively reflect the historical performance of the field since oil production began in the 1950's. Dr Ali has advised that he intends to complete this part of the study by the end of February 2013 and by that time expects to have begun the cyclical steaming matches and various steamflood scenarios.

The thermal simulation study serves to optimise production and reserve development at Tapia Canyon. From the very beginning, the Board has been determined to get the best possible thermal stimulation report prepared by acknowledged experts in order that the value of Enhanced Oil Recovery (EOR) project at Tapia Canyon can be maximised in negotiations with third parties concerning the full development of this oil field.

In accordance with the guidelines of the AIM Market of the London Stock Exchange, Jim Ellerton, Chairman of Sefton Resources, Inc. a qualified geologist with over thirty years oil & gas industry experience, 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.

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 £6 million and an unrisked PV(10) proved reserves and resources value 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 (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 with an active well drilling and work-over programme in conjunction with the use of cyclic steam production enhancement. Sefton engaged Petrel to construct a geologic model to be utilised by Dr Farouq Ali, a recognised expert, in a thermal stimulation study to optimise production and reserve development for Tapia. Of all Sefton's operations, Tapia generates the majority of the revenues, at this time.

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 under way 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 outside the local Kansas market. 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.