SER.L Regulatory News (SER)

16 February 2012

Sefton Resources, Inc.

("Sefton Resources" or the "Company")

California Proved Reserves 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 reserves for the Tapia and Eureka Canyon Fields in California as at 31 December 2011 following a report published by Reed W. Ferrill & Associates Inc ("Reed W. Ferrill").

Key findings:

·; California oil assets valued at US$137.8 million (£87.7 million) as at 31 December 2011 on a constant costs/price, PV10 basis were slightly higher than the mid-year valuation, despite a reduced oil price.

·; Proved reserves total 3.7 million barrels of oil in California as at 31 December 2011 and remain largely unchanged from the mid-year stage.

·; The quality of reserves is improving as the recent work at Tapia has allowed Proved Undeveloped (PUND) reserves to move up into the Proved Developed Non-Producing (PDNP) and Proved Developed Producing (PDP) category of reserves.

Jim Ellerton, Executive Chairman, commented today:

"The recent drilling at Tapia, together with the renewed cyclic steaming program, a pending updated geologic model from Petrel-Robertson following current core analysis and the completion of Dr Farouq Ali's thermal stimulation model based on the updated geologic model is expected to have a significant impact on production and reserves by mid-2012.

Looking forward, we will soon provide a further update on our activities at Tapia including the three new wells drilled in December 2011 and in due course the findings of Dr Ali's report. We also intend updating shareholders on operations in Kansas with a Competent Persons Report to be published before the end of the first quarter 2012."

Oil reserves in California

The present value of the estimated future net cash flows from estimated proved reserves before income taxes using a 10% discount rate (PV10) has been calculated to be approximately US$137.8 million (£87.7 million). This is based on year-end 2011 US GAAP, with constant prices and costs in which an oil price of US$102.10 per barrel was used for the Californian assets. The same analysis carried out at 30 June 2011 calculated a PV10 valuation of US$136.8 million using an oil price of US$104.10 per barrel.

By moving reserves from Proved Undeveloped into Proved Developed, oil is recovered more quickly, thus increasing the present day value.

According to this latest report by Reed W. Ferrill, the estimated year-end 2011 proved reserves of 3.766 million barrels is made up as follows:

·; Proved Developed Producing (PDP) 436,000 barrels,

·; Proved Developed Non-Producing (PDNP) of 1.224 million barrels and

·; Proved Undeveloped (PUD) of 2.077 million barrels.

This has increased since mid 2011 following the additional work which has taken placeat the Tapia field resulting in PUD reserves being moved into PDNP and PDP categories.

*Nymex strip price of $104.10 per barrel as of 6/30/11 and $102.10 per barrel as of 12/31/11

At the Tapia Field, Reed W. Ferrill believes that the current producing wells leased as PDP and 14 future infill wells currently classed as PDNP and PUD will provide an expected ultimate recovery (EUR) of 2,728,000 barrels, or 23.5% of the original oil in place (OOIP) of 11.6 million barrels.

Cyclic Steaming will increase output significantly

In 1984, a cyclic steam injection pilot was conducted on the Yule 5 well and between 2008 and 2011 sixteen steam cycles on thirteen wells were conducted as part of a cyclic steam pilot program. This pilot increased the rate of oil production and proved that cyclic steam would be an effective recovery mechanism which led Sefton to implement a field wide cyclic steam injection program in late 2011.

Based on these results, Reed W. Ferrill initially calculated in a report published in June 2011 that a cyclic steam injection program using 10,000 barrels of steam per day would increase EUR to 32.3% of OOIP It was also calculated that based on an injection rate of 3,500 barrels of steam per day (using a second steam generator) an expected ultimate recovery would increase to 50% of OOIP.

In late 2010, Dr. Farouq Ali, a specialist in reservoir engineering and heavy oil recovery was commissioned at the suggestion of Reed W. Ferrill, to produce a comprehensive thermal stimulation model and strategic plan for the development of the Tapia oilfield by the implementation of a full, continuous steamflood program across the entire oilfield. During 2011, a continuous steam pilot program was implemented in the center part of the field, using a non-producing well (Hartje #10), with very positive results. Dr Ali's thermal stimulation study will be completed, once modification to the geologic model is finalized, and it is expected that the ultimate recovery will increase further, to between 51% and 78% of oil in place (11.6 million barrels) as Dr. Ali's initial report indicated.

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

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, where coal bed methane, as well as conventional oil and gas deposits are targets.