BMD Strikes again!
Well it looks like another success story here for the Blog of ALL Blogs!
Some news circulating of a RE-RATING, so watch list them!
You’ll all recall we recently highlighted Sefton Resources too much guffaws from many out there. I recall one particular nasty individual posting dribble and castigating the Blog for giving little Sefton a decent write-up. I expect he’s now pulling his hair out. Sefton have just released a CPR AND THEIR SP HAS ROCKETED! You can read the basis of the CPR below.
12 May 2011
Highlights
· Independent Competent Persons Report by consultant Dr. Nafi Onat estimates the PV10 value of Sefton’s oil and gas resources in Kansas at US$100.1 million (circa £60 million at current exchange rates)
· Dr. Onat’s report also highlights prospective resources of 1.747 million barrels of oil in Kansas
· Completion (subject to additional due diligence) of the acquisition of the Cholla assets in Kansas (as previously announced on 10 February and 21 March 2011) together with a proprietary Kansas geological database
· Sefton’s Tapia oil field in California wins an operators award for the third year in a row
Commenting today, Jim Ellerton, Acting Chairman and CEO of Sefton (AIM: SER) said:
“We are excited about the findings of the Competent Persons Report by Dr. Nafi Onat which, for the first time, puts an estimated valuation on our interests in Kansas. This is in addition to the Company’s proved oil reserves in California, which at year-end 2010 had a present value (PV10) of US$80.6 million (approximately £49million), and serves to indicate the potential value within Sefton which, as yet, is not reflected in the share price. We are busy working our investor relations programme to get this message out.”
A summary of the findings of Dr. Onat’s report is outlined below.
Dr. Nafi Onat’s report on Kansas prospects
Dr. Nafi Onat of Denver-based Sure Engineering, LLC has published a report which provides an independent geo-technical review and economic evaluation of the conventional (sandstone, limestone and dolomite) and unconventional (coalbed methane gas) prospects in Sefton’s Kansas exploration projects which covers the Anderson, Franklin and Leavenworth Counties. This has been prepared in accordance with the standards of the Society of Petroleum Engineers (“SPE”).
Dr. Onat assessed the potential economic values of the prospects both in terms of the recoverable volume scenarios as well as the hydrocarbon types considered; and generated a range of values for each potential formation in Anderson, Franklin and Leavenworth Counties which are shown in the table below.
Summary of economic analysis
| Prospect type | Classification | Scenario | Net Resources Volume | Cumulative Cash Flow US$ million | Net Present ValueUS$ million – (Discounted 10%) |
| Anderson County Squirrel/Bartlesville oil resources | Prospective Resources | Oil | 1,747,897 Bbls | 73.2 | 48.4 |
| Anderson CountyWarner Sand gas resources | Prospective Resources | Gas | 15.7 Bcf | 32.9 | 20.5 |
| Anderson & Franklin CountiesCoalbed methane gas resources | Contingent | Gas | 32.5 Bcf | 105.9 | 28.1 |
| Leavenworth CountyCholla coalbed methane gas resources | Possible | Gas | 0.53 Bcf | 2.2 | 1.2 |
| Leavenworth CountyCoalbed methane gas resources | Contingent | Gas | 2.3 Bcf | 6.2 | 1.9 |
| Total | $220.0m | $100.1m |
Note: No pipeline revenue and/or McLouth development in Leavenworth County have been included at this time.
Thanks Dan for doing the honours.
Much appreciated.
Cheers, SK.
Perhaps Xcite Energy should hire Dr. Onat and show them how to write a decent report.
Any more thoughts on whats happened this week to XEL please Dan?
Any news on eo and rkh Dan, neither seem to be making any headway at the moment. What`s going on?
dan , wht do u think tht can I buy Sefton share now at 4p. will it be a wise thing to do.
dan do u think that to buy sefton share now at 4p is a wise decision.
You have too make that decison yourself based on your research. They should hit 5p some-where along the line but you can never tell for a certainty.
Dan
DAN YOU’RE WRONG AGAIN!!!!
:p
They hit 6p
Puravida!!!!!!!
I’ll give you that one.
Although in my recent article I did say 6p!!
Dan
all the best to you squire
A proper call Dan, well done – what was it.. a week ago?
.. stuck em on the watchlist but XEL didn’t pan out so funds didn’t come blah blah blah.
A twinge of jealousy felt by myself, and many others I bet.
One question, I’m sure I didn’t see you note this CPR as upcoming in your write up, after two months of your probing, did you overlook this?
Well done also Daniel on this sefton stock. I only wish i’d researched them.
I’ve never won so much as a bean in my entire life tbut this makes up for it. Wembley here we come!
Brilliant result on sefton i’ll be joining your new site also.
Top man Daniel.
Paul (Bainsey)
Well done Daniel/
Ive been watching your progress for ages,very impressed. Sefton up 200% fantastic how high do you think they can go?
By the by I’ll definately be joining the new site if I’d only of stuck 5k in them i’d be up 10k instead punted a grand in them and made £1500 or so I think you’ll be swamped when this new site comes online. Jesus with calls like this you will be a millionaire.
Dan fantastic call on Sefton. I only wish i had researched them I read this from the comments section by a poster calling himself “G” I was on my oath going to invest but after reading “G’s” comments never did. What an absolute bollock I dropped. If I ever come across you G I will cave your skull in you are an absolute twat for posting the rubbish below
BROKERMAN has ripped you to pieces you low life twat!
Davey
+++++Well Brokerman, since it is readily obvious you have no idea about this company and I am having to drip feed this information to you, let me point out a few more things to bring you up to speed (I have followed this for a decade).
The debt is not ‘relatively small’ – it is $6.8 million (note the currency) against the current market capitalisation of £5.75 million. The borrowing facility was agreed up to $10 million several years ago and is secured against the asset base. The remianing headroom (and the entire facility) is reserve linked, but despite your claims about the reserves, ask yourslef why they have not managed to get the bank (Bank Of West) to go beyond $6.8 million and have instead diluted shareholders by over 100% in the last four months or so to raise a mere couple of million pounds.
Now, as for how much the steamflood will cost, I say this – Sefton cannot fund those costs and this is conceded in a research note commssioned by the company and from one of their promoters. You can guess the figures (I sense you have the Religare note, just look at thier expectation on this) but I think the figure will be many multiples of the current valuation of the company. How will they access these? Bank debt is hardly likely since the assets are already secured against the debt, and if they get a partner what will the partner get out of it? Why instead would a partner not just buy the company now instead of paying many times the multiple for a mere share?
You suggest 1000 bopd is a given going forward. Well, look at the official news from the company from 2001 – they expected 800 bopd back then. Here we are in 2011, and they are doing 110 bopd, after taking on nearly $7 million in debt, and four placings recently that diluted holders by around 110%, yet despite all this we get 110 bopd.
Give me a break BrokerMan. If you do not know what you are doing, then do not pretend to others that you do. I jest not.++++
A lesson to be learned on my part Dan. What an idiot i was. Well done my son.
Davey
Davey calm down. Posters such as the now infamous “G” do serve a purpose.
It’s all down to researching your investments. Which I’ve stated more times than I can remember.
Good Luck
Dan
Hey Davey I’m in the same boat as you.
G where are you now? yOU HAVE BEEN GIVING A RIGHT SHOWING UP.
Crawl off back under your rock G. G YOU HAVE BEEN TAUGHT A LESSON that will shame you for the rest of your online life. A change of online identity for you pal! Try PRICK, suits you Sir. A 225% rise missed! BECAUSE OF YOU, G= PRICK
Fast Phil
Same as Davey post. Calm down Phil.
Good Luck
Dan
A big thank you for this one Dan! Decided to check it out after your post last week and decided to have a small punt which has become somewhat larger after today’s action – helps make up for some of those that are slower-burning (like MTA!).
I love you danny. I love you Danny. Big up and respect to you. You are the man Dan!
Just this minute got home from work logged on to my account and im up £4957.89p. I had a sell on them @ 5.5pTerrific. I bought some last week after checking them out as you suggested. It’s my biggest ever gain by far. Fantastico. It’s brill news they’ve released I knew I should of put a sell on them @6p Well done and thanks for the help. If you ever need your boiler fixing then ring me I’ll do it for freemans. I’ve sent you an email with my contact mobile numba. I’m based in Brum but I’ll gladly travel to the Smoke with a grin on my face all the way.
Thank you so much.
Well played matey
Many congratualtions Dan on another success! I notice on the Aminex thread there was info you had to keep divulged from public eyes. Could yousend this to my email? It woul be most appreciated!
Thanks again
You must be minted brokerman.
Can’t wait for the new web site.
I’ll be joining now matter what the cost is and do you know why? I’ve made 7thousand pounds on Sefton which goes nicely with my 12k from xcite and my 4k from encore.
Not too mention the 1749 pounds i bagged from Haike.
You are a bloody genius.
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