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15 Mar 2011 07:00
Sefton Resources, Inc.
("Sefton" or the "Company")
Placing of New Shares
15 March 2011
Sefton Resources (AIM: SER), the independent oil and gas exploitation and production company is pleased to announce a share placing (the "Placing") of 52,562,500 new common stock of no par value each in the capital of the Company ("New Common Stock") at a price of 1.6 pence per share.
The gross proceeds of the Placing of £841,000 will be used to provide additional working capital for the company as well as providing funds for the work being undertaken by Dr. Farouq Ali for the proposed steamflood development of the Tapia field which the Directors believe could
significantly increase its output. The proceeds will also be used to develop the Company's gas pipelines and leasehold projects in Kansas.
The New Common Stock will represent approximately 20.6 per cent. of the Company's enlarged issued share capital immediately following the Placing.
Application has been made for the New Common Stock to be admitted to trading on AIM. It is expected that Admission will be effective and that dealings in the shares will commence on 18 March 2011.
The New Common Stock will rank pari passu with the existing Common Stock. Sefton will have 255,031,959 Common Stock in issue following the Placing.
For further information please visit www.seftonresources.com or contact:
John James Ellerton, Acting Chairman and CEO | Tel: 001 (303) 759 2700 |
Dr Michael Green, Investor Relations | Tel: 07855 734970 |
Nick Harriss, Religare Capital Markets (Nomad) | Tel: 0207 444 0800 |
Jon Levinson, Rivington Street Corporate Finance (Broker) | Tel: 0207 562 3357 |
Neil Badger, Dowgate Capital Stockbrokers (Broker) | Tel: 01293 517744 |
Alex Walters, Cadogan PR | Tel: 07771 713608 |
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.
Currently Sefton Resources has a market capitalisation of £4.56 million. At year-end, the company had a Present Value of its proved reserves (PV10) of US$80.6 million (approximately £50.4 million). The estimated 2010 year-end proved reserves of 3.8 million barrels includes proved developed (PD) reserves of 1.6 million barrels and proved undeveloped (PUD) reserves of 2.2 million barrels. In addition, there are 2.3 billion cubic feet (BCF) of estimated possible gas reserves at year-end 2010 associated with the Company's eastern Kansas assets. All of Sefton's 2010 year-end estimated proved and possible reserves were independently estimated by Reed W. Ferrill & Associates.
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