SER.L Regulatory News (SER)

7 Feb 2008 08:54

Sefton Resources Inc07 February 2008 February 7, 2008 SEFTON RESOURCES, INC Operations Update 2008 DRILLING PROGRAM Sefton Resources, Inc., the AIM listed oil and gas production company withassets in California and Kansas, announces that its wholly owned subsidiary TEGOil & Gas USA, ("TEG") has commenced the drilling of the Snow #3 development oilwell. The well is the first in a series of the three to four wells in the Tapia2008 Q1 drilling program. The Snow #3 well spudded on Sunday, February 3, 2008. Each of these three to four wells are step-out wells designed to extend theproductive limits of the Tapia Oil Field to both the east and west. The threeSnow Lease wells are anticipated to encounter a thickened section of Yule oilsand reservoir. The Yule sand productive thickness is mapped at greater than120 feet for each of the planned three Snow lease wells. Each well will takeeight to ten days to drill and complete. TEG will evaluate these wells over the coming months and use the data to planthe next round of drilling at Tapia. STEAM PROGRAM TEG is awaiting final approval from the Los Angeles Air Quality Control Board(AQMD) for firing the TEG steam generator with propane. TEG will commence withthe steaming of the Yule #7 well once this final approval is given. The AQMDhas already given approval for the construction of the steam equipment capableof burning lease gas, natural gas and propane. This final approval is believedto be purely an administrative one which TEG is endeavoring to expedite. Chairman, Jeremy Delmar-Morgan commented, "It has been a good start to the yearwith the drilling program now underway. As a result of the planned step-outwells in 2008 and the drilling in late 2007, our cash flow has improvedconsiderably. The improved cash flow will allow Sefton to develop its assetswithout substantially increasing its debt." For further information, contact: Jeremy Delmar-Morgan, Chairman Tel: 077 8900 4874 John James (Jim) Ellerton, CEO Tel: 00 1 303 759 2700 David Millham, Investor Relations Tel: 020 7796 9999 Nicola Marrin, Seymour Pierce Limited Tel: 020 7107 8000 Sefton Resources is an AIM listed oil and gas production company. Its main corearea 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 (mediumgravity 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 EasternKansas where Coal Bed Methane gas, as well as conventional oil and gas deposits,are targets. This information is provided by RNS The company news service from the London Stock Exchange