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8 Dec 2010 07:00
Sefton Resources, Inc.
("Sefton" or the "Company")
Issue of Equity
8 December 2010
Pursuant to a placing and a subscription, Sefton has today issued 48,888,080 common shares of no par value ("Common Shares") at a price of 1.25p per share to certain investors, including the directors of the Company ("Directors") or their related parties, raising a total of £611,101 (approximately US$960,400) before expenses (the "Issue").
The Company intends to use the net proceeds of the Issue to increase production at its main core asset at Tapia Canyon, California, establish an additional revenue stream in Eastern Kansas and provide additional working capital.
C & J Resources Inc. (a company in which Mr. Jim Ellerton, the Chief Executive Officer of Sefton, is interested) and Mr. Karl Arleth (a Non-executive Director of Sefton) have each subscribed for 5,090,400 Common Shares and Mr. Mark Smith (a Non-Executive Director of Sefton) has subscribed for 2,024,640 Common Shares.
In aggregate, the participation of the Directors or their related parties in the Issue may constitute a related party transaction for the purposes of Rule 13 of the AIM Rules for Companies. Since all of the Directors are participating in the Issue, there are no independent Directors. The Company's nominated adviser, however, considers that the terms of the Issue are fair and reasonable in so far as the Company's shareholders are concerned.
The Company has made an application for the new Common Shares to be admitted to trading on AIM and trading is expected to commence on 14 December 2010.
Following the Issue, the Company has 182,469,459 Common Shares in issue. The Company does not hold any Common Shares in treasury.
In so far as the Company is aware, the holdings of the Directors and Significant Shareholders following the Issue are as follows:
Shareholder | Number of Common Shares Held | Percentage of Common Shares Held |
Directors | ||
JJ Ellerton * | 26,710,552 | 14.64% |
KF Arleth | 6,153,519 | 3.37% |
MR Smith | 2,080,240 | 1.14% |
Significant Shareholders | ||
TD Waterhouse Nominees | 14,098,626 | 7.73% |
Barclayshare Nominees | 10,236,170 | 5.61% |
LR Nominees | 9,833,203 | 5.39% |
J Sires | 9,162,720 | 5.02% |
Raven Nominees | 8,348,789 | 4.58% |
HSDL Nominees | 7,579,652 | 4.15% |
J Delmar-Morgan ** | 6,317,490 | 3.46% |
* This includes Common Shares held by the C & J Resources Inc. Pension Plan, C & J Resources Inc. and J Ellerton Consultants, all of which are Related Parties to Mr. Ellerton under the AIM Rules for Companies.
** This includes 1,052,313 Common Shares in the name of Mary-Elaine Delmar-Morgan, Mr. Delmar-Morgan's wife.
Enquiries
John James Ellerton, CEO - Tel: 001 303-759-2700
David Charles/John Gaensbauer, Sierra Partners LLC - Tel: 001 303-757-2510
Nick Harriss/Derek Crowhurst, Religare Capital Markets (Nomad) - Tel: 020 7444-0800
Daniel Briggs, Religare Capital Markets (Broker) - Tel: 020 7444-0500
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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