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21 Mar 2011 07:00
Sefton Resources, Inc.
("Sefton" or the "Company")
21 March 2011
UPDATE ON
PURCHASE OF CHOLLA ASSETS IN KANSAS.
Sefton Resources, Inc. (AIM: SER), the independent oil and gas exploitation and production company,is pleased to announce that following the announcement made on 10 February 2011 concerning its intention to purchase additional assets in Eastern Kansas it has now signed a binding conditional purchase and sale agreement (the "Agreement") with Cholla Production LLC ("Cholla").
The assets to be acquired from Cholla are in Leavenworth County Kansas and include acreage (leases), wellbores, equipment and technical data in close proximity to the Cholla Pipeline which was acquired by Sefton in December 2010.
Subject to final due diligence, which is currently taking place, the purchase price is US$200,000 USD, which will be satisfied from existing resources. It is expected that the conditional aspects of the Agreement will be finalised by mid April with completion taking place by the end of April 2011.
Commenting today, Jim Ellerton, Acting Chairman and CEO of Sefton Resources said:
"These assets are in proximity to the Cholla Pipeline which we acquired in December 2010. They complement our strategy to aggregate and transport gas in the region by giving us a our own potential gas production base as well as the volumes of third party gas expected to move through our pipeline system".
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
Sefton is an AIM-listed oil and gas exploration and production company. Its main areas of activity 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 has a market capitalisation of £3.72 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 East 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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