SER.L Regulatory News (SER)

Sefton Resources, Inc.

("Sefton Resources" or the "Company")

Operational Update

Sefton Resources (AIM: SER), the independent oil and gas exploitation and production company with interests in California and Kansas, USA announces today a brief Operational Update and the execution of an agreement for the drilling of four new wells at Tapia Canyon oil field in California.

Highlights:

·; Drilling of four new wells at Tapia Canyon scheduled to commence in mid-November and take approximately five weeks to complete.

·; The new wells are expected to be producing in early 2012 which should allow oil production to rise by up to 75% to an estimated 240 barrels of oil per day

·; Average Tapia 18°API crude purchase price of $107 per barrel received in October which represented a 24.4% premium to NYMEX

·; Oil production in October at Tapia and Eureka fields was approximately 129 barrels of oil per day

·; Dr. Farouq Ali is currently in the process of finalizing an interim report on the Tapia steamflood model

·; Occidental Petroleum Corporation ("Occidental") via its subsidiary Vintage Production LLC has permitted a third well on its adjacent field to Tapia Canyon

Jim Ellerton, Executive Chairman, commented today

"The drilling of these four wells is very much part of the plan to increase production and revenues from Tapia and this is in advance of us receiving the completed report from Dr Farouq Ali which will give us a very strong indication of how we can further develop the field.

It's also interesting to note that we are not alone in being confident about this area and its potential as a neighbouring operator, Vintage Production, a subsidiary of Occidental, has recently moved a rig on location to drill a third well at their Wayside Canyon oil field which is immediately adjacent to Sefton's Tapia Canyon field."

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

Production

California oil production for the Tapia and Eureka fields has been steady and has averaged about 129 barrels of oil per day (BOPD) for the month of October. The 129 BOPD number represents a very slight decline, however this is on account of taking Yule #7, #10, and #11 offline for the final days of the month, as the well pad was stripped of surface production equipment in preparation for the new oil wells to be drilled. The rig to carry out our new drilling programme is expected to arrive during the second week of November.

New Drilling

For permitting purposes and for efficiency of field operations the four new wells will be drilled from existing well pads with the existing operations temporarily shut-in and surface facilities moved off during the drilling.

The plan is to drill and core the initial well (Yule #12), then redrill the Yule #9. Production from Yule #7, #10, and #11, currently totalling 19 BOPD, will be shut in for this work. It is expected that these wells will be brought back on and initial production from Yule #9 and #12 will commence during mid-December.

The third well planned, Hartje #19, will be drilled and cored (eastern portion of the Hartje lease). Hartje #13 and #15, with production currently totalling 39 BOPD, will be taken offline during the drilling of Hartje #19.. Production from these wells will be brought back on in late December and at the same time initial production is expected from Hartje #19.

The fourth well planned, Hartje #20, will be drilled in the central part of the Hartje lease. The Hartje #10 (steam injector) and Hartje #16 and #18 (oil wells), currently totalling 30 BOPD, will be taken offline during the drilling of this well. The Hartje #16, and #18 wells will be brought back on production in early January and at the same time initial production is expected from Hartje #20 (new well)

A total of approximately 88 BOPD will be taken offline during the drilling process, but this will be staggered through the months of November and December, and this maximum amount will be offline for a total of about 14 days.

Once completed and all the new wells are online, it is expected that total oil production will rise by up to 75%, to approximately 240 BOPD.

In October 2011, the average purchase price for Tapia 18°API crude was $107 per barrel which represented a 24.4% premium to NYMEX.

Steaming

The continuous steam pilot will be shut-in in mid-November when the Hartje #10 well pad is prepped for the Hartje #20 drilling operation. We have had good response from the steaming pilot in the Hartje #18 well and the beginnings of response (increase in reservoir pressure/slight production increase) in the Yule #5 well, located south from the Hartje #18 and injector wells. Overall, the continuous steam injection has increased production from these adjacent wells, by approximately 25%.

Sefton plans to continue steaming operations in the form of cyclic steaming starting with two wells in the vicinity of the steam generator, Yule #5 and Hartje #12 before the end of 2011. Future steaming activity into the 2012 calendar year will follow recommendations outlined in the Thermal Simulation Study Report pending from Dr. Farouq Ali.

Dr. Farouq Ali Report

A meeting was held in Denver with Dr. Ali on November 2, 2011. He is currently in the process of finalizing an interim report on the Tapia steamflood model. He is working with Petrel Robertson Consulting Ltd. which has prepared the digital geologic model on which the steamflood modelling is based. The interim report will focus on matching observed field performance with model performance and should confirm the positive results of both the cyclic and continuous steamflood pilot programs and provide information on the direction the full steamflood will take.

The current four well drilling program at Tapia and particularly the coring of two of the wells will provide vital data that will allow a final, more comprehensive field performance match. The coring of the Yule Sand followed by detailed core analysis where porosity, permeability, water saturation, relative permeability and possibly wetability tests will be performed, are expected to generate data which will ensure that the final study results accurately reflect the expected specific steamflood performance of Tapia Field.

About Sefton Resources:

Sefton Resources is an AIM-listed oil and gas exploration and production company. Its main area of activities 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.