SER.L Regulatory News (SER)

29 Nov 2007 07:01

Sefton Resources Inc29 November 2007 Sefton Resources Inc Drilling update Sefton Resources Inc. ("Sefton" or the "Company") announces that its whollyowned subsidiary, TEG Oil & Gas USA, has successfully completed its drillingprogramme at the Hartje #16 & #17 wells. Both wells were drilled in theeast-central portion of TEG's Tapia Oil field. They were completed in the Yuleoil sand, encountered at vertical depths of approximately 1,100 feet belowsurface. The wells were directionally drilled from existing surface well pads.This minimizes surface impact and consolidates surface facilities for efficientoil production operations into the future. The drill rig is currently demobilizing from the Hartje #17 well location. Theinstallation of a surface pumping unit and final electrical and flowline hookupwill commence as soon as the drill rig equipment is cleared from the pad. TEGplans to complete this work and commence production from Hartje #17 by themiddle of next week. The Hartje #16 well has been producing for four days. Over that time, the wellhas averaged approximately 70 BOPD from the 120 feet of Yule oil sand completioninterval. This rate is expected to settle out to a standard 30-day InitialProduction (IP) rate of greater than 40 BOPD. TEG is very pleased and encouragedby the results thus far and a further announcement on Hartje#17 will be madewhen it has production figures available. The Company's Steam Testing Programme continues. TEG has scheduled a singlesworkover rig to service the Yule #8 gas supply well for the first week inDecember. The well tested at 1,150 Mcf of gas per day during an 8-hour flow testin January of 2004. Since that time, the well has set idle. Over this four-yearperiod, fluid had collected in the Yule #8 well, sourced from a lower intervalthat was opened prior to testing the gas zone. TEG has successfully isolated thenon-gas-productive perforations that were open in the well and interfering withconsistent gas flow. The additional work planned will complete this repair andthe gas will then be routed to the steam generator. Further news will be madeavailable when the current testing has been completed. For further information, contact: John James (Jim) Ellerton, CEO Tel: 00 1 303 759 2700Jeremy Delmar-Morgan, Chairman Tel: 077 8900 4874David Millham, Investor Relations Tel: 020 7796 9999Nicola Marrin, Seymour Pierce Limited Tel: 020 7107 8000 Note: The information in this release has been compiled and reviewed by HarryBarnum, a director of Sefton, who is a qualified person for the purposes of theAIM Guidance Note for Mining, Oil and Gas Companies issued on March 16, 2006. MrBarnum has Bachelors and Masters Degrees in Geology and over 20 years ofexperience in the oil and gas industry. He is a registered professionalgeologist in the State of California. This information is provided by RNS The company news service from the London Stock Exchange