SER.L Regulatory News (SER)

13 Dec 2007 17:26

Sefton Resources Inc13 December 2007 PRESS RELEASE Sefton Resources Inc Production Update Sefton Resources Inc, announces that production from TEG Oil & Gas USA's two newwells, Hartje #16 & #17, drilled in the Tapia Oil Field in California, has begunto stabilize. After the initial flush production from the wells, the productiverates have settled to current rates of 47 and 28 BOPD on average. The 30-dayrates will be reported once they are completed. TEG is also modifying its Steam Pilot Programme at Tapia. After completing someremedial work on the Yule #8 gas well, gas flow rates from the well are stillvariable as a result of the well being idle for four years. Wellhead pressure iscurrently above 200 psi and because of this, it is believed that the well maystill clean up and become serviceable over time. The gas rate variability causesthe steam generator to shut down, and this is part of the steam generator'snormal safety system. However, TEG believes attempting to conduct a pilot steamstudy with inconsistent steam injection could lead to poor data and inconclusiveresults. TEG has other wells in the Tapia field in which it can perforate theshallow gas interval and which can be used for the steaming process.Nonetheless, TEG is now considering the use of propane gas for the PilotProgramme only. This would allow it to test the viability of thesteam-stimulation process in a more expedient and consistent manner. During thistime TEG will be able to continue to work on the YULE #8 gas well and alsoproperly plan the use of other gas supply wells in the field-wide steam programgoing forward. 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 Notes to editors: 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 30,000 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