You get all the breaking news here on the world’s favourite pain in the smallcap oil company’s’ underverse. Another exposure on the sheer madness of Sefton Resources. The company that has been wasting YOUR money on Strippers! Yes Strippers!
The Sefton proclivity to keep deceiving small share-holders has continued unabated this month as the latest RNS screamed “Kansas Exploration & Production Operations Report” “300 barrels of oil sold in January 2013 with production coming primarily from two leases.”
What investors need to do here is to automatically stop, take a firm grip on their sanity then say thrice “There’s no place like home” once the chant has been spoken then the Kansas fantasy spell has been broken only then can the Kansas RNS Runes be deciphered. Remember there is an invisible Steamflood Wizard lurking around here with the mystical “Report of Steam” keep your eyes peeled although invisible to mere mortals he can periodically cast a “perception spell” the effect of which befuddles the mentally challenged into seeing the “Report of Steam” just on the Horizon. Do not allow this spell to enchant you. Chant “I am not a BBLoon” four times then click HERE to search every RNS since the 2000 ipo. Now let’s kick on and get to the truth of Kansas.
Isn’t it strange that Sefton fail to mention the daily bopd in their Kansas RNS? Isn’t it strange that there’s no mention of how many wells are producing? Their names or their locations? Hot footing it around Kansas state reveals the Truth that Karl (Grandly titled President & Ceo) & Jim (Executive Chairman one of many titles Jim’s bestowed upon himself over the 12 years of miserable failure) seek to hide from share-holders. Read it & weep!
It’s 300 barrels a MONTH from 18 wells which averages out at 0.53 of a barrel per well or to put it in it’s daily form (Sefton obviously didn’t want too) 9.6 bopd from 18 wells costing $15 thousand dollars per well to suck up half a barrel of oil! Of course the KNOWN capex so far ($270k) on these “euphemistically” called “Re-completions” doesn’t include the cost of the “assets” or the (LOE) Lease Operating Expenses; you know things like Trucks, Drivers, Water, Fuel, Day-men and general maintenance people who have to go out each & every day to check each & every well. The Jim Ellerton Deception just keeps rolling along. “More revenue streams!” I thought a “Revenue stream” was one that actually makes a profit you know spend $5 dollars get back $6!
Remember JimmyLiar is receiving approx’ $1million dollars per year in Pay, Expenses, “Consultancy Fees”, Share Options & Pension Pot Payments after running the company (for 12 years) into the ground the sp currently sits at an over-generous 1p. Pre the 2006 1.6 Billion 15 for 1 consolidation the Dilution was 1100% the shares now in issue are just under 600,000,000 a further 500% dilution on top of the consolidation equates to a 5000% Dilution since their IPO in 2000. Remember they used to be 95p!
Karl & Jim’s Strippers
Here’s some (But not all, we don’t & wont spill the beans in one go) of what we know about Jim’s’ penchant for Kansas Strippers! In Jan 2013 Teg MidContinent acquired from Jag Petroleum the Wagner Oil & Gas Lease of 960 acres the lease is named after the people who own the land etc. It consists of 3 oil wells & 1 Saltwater disposal well. The owners, Melvin & Elaine Wagner (Husband&Wife) certified that there has been NO oil or Gas production or royalty payments since 2007. What that means is that these wells are Stripper wells. ie wells that are classified as uneconomic. How much did Sefton pay? Well the lease states “One & More” That’s $1 dollar & some “More” I think we can safely say that the amount isn’t going to break the bank at Monte Carlo!
Of course Jim’s’ not been forward in going backward in Sefton’s dealings, padding out the Sefton Asset base with worthless Stripper wells & leases. Take for instance the 20 acre Collins Oil & Gas lease (Dec’ 2012) bought for the princely sum of £250 quid! I shit you not! Read it HERE. It contains 1 well that last PRODUCED oil at the same time the Hitler Diaries were first published! Yes it’s been abandoned since 1983!
Just so we don’t confuse Strippers with “Strippers” A Stripper well or marginal well is an oil or gas well that is deemed uneconomic & at the end of its economically useful life. In the United States of America a “Stripper” Oil well is generally classified as wells that can only produce under 10 barrels per day or less for any twelve-month period. This is because they have been basically sucked dry! According to the National Stripper Well Association (NSWA), most oil stripper wells average 2.01 barrels per day. A Stripper gas well is defined as one that produces 60,000 cubic feet (1,700 m3) or less of gas per day at its maximum flow rate = to 600 Therms. A Therm in the USA costs 15p per Therm on 6th Feb 2012 ( last time I checked) Has the penny dropped yet? If not then try this one.
The Adams Oil & Gas Lease consists of 56 acres with 3 ABANDONED Stripper wells in the county of Leavenworth. Fee “One & More”. According to Mr & Mrs Adams there has been NO oil or gas production or mineral rights whatsoever since 1992. Or why not have a good old gander at the Robert Abel lease HERE it’s two Stripper wells on 73 acres; the last known operators licence expired in 1992! A company maker if ever there was one! Now I can see why the “Sefton paid” for Competent Persons Report by consultant Dr. (Dafti) Nafi Onat estimates the PV10 value of Sefton’s oil and gas resources in Kansas at US$100.1 million. Has the penny dropped yet? It’s Fantasy Island stuff. Maybe the 3 shut-in gas wells recently transferred from Cholla to Teg MidContinent can get the gas flowing. Read HERE
Hang on a minute!! Isn’t Cholla the same outfit that flogged SEFTON the Laggs pipeline so now their transferring gas wells? But why didn’t Cholla drill for gas themselves and transport it through Laggs? It’s a mystery! No it’s not it’s economics. There’s no gas worth drilling! That’s why they sold off their abandoned rusty pipeline and abandoned wells. If you’d like to know how much gas Cholla have produced in 9 years of trying I’ll tell you; ZERO, & show you HERE. Now far be it for me to question why Cholla flogged their pipeline and abandoned wells but is it in the realms of reality that they disposed of them because after 9 years of failure the “Penny dropped?”
All of the claims from Sefton are spurious and mis-leading it is often what the company fail to say that gives away the truth behind the lies. None of the counties or formations that the company are drilling for oil or gas are in The top 10 in Kansas State lists All of this so called Kansas production consists of Stripper wells/leases. Assets that have been classified as exhausted and abandoned or plugged by the Kansas State Corporation Commission. They can be picked up for a few hundred dollars; in many cases you can get them for free. STRIPPER WELLS! Wells that have been picked clean. By the way Kansas is in the top ten States in the USA for Stripper wells!
Take a wild guess on the much trumpeted Mclouth formation. According to the Liars at Sefton the formation has produced 2.9 million barrels. Really? This is news to the Kansas State Commission where in 2012 the Mclouth formation produced 66 barrels. Yes that’s correct 66 barrels of oil in fact since 2005 this formation has over 8 years produced a thumping 1089 barrels of oil. Fact; 31 years of Mclouth production comes in at 419,630 barrels. A far cry and 2.5 million barrels away from the Sefton claims! Check it out for yourselves Here Remember this Sefton proclamation? “Although previously reported initial production averaged approximately 27 BOPD and 350 Mcf/d during the first month of operation, such rates for the McLouth wells can vary from 5 to 45 BOPD and from 15 to 400 Mcf/d.” So from telling us all that Mclouth initial production comes in at 27 bopd they’re now changing it to 5/45 bopd.
But here’s the killer FACT those figures are for initial production from NEW WELLS NOT EXHAUSTED STRIPPER WELLS. Sefton are trying to infer that their Kansas Strippers are capable of up to 45 bopd! With gas of 350 Mcf/d. This is an absolute bare faced deception. It is an inferred lie and they know full well that it is a Deception
You would think that an oil company would actually source up to date information from the Kansas State Commission. Instead of Mr Beene. You really couldn’t write this stuff for the Telly!
In Kansas 2012 there were approx’ 73,000 oil & gas wells. It’s safe to say that there are also tens of thousands of abandoned wells. Yes the state of Kansas is littered with tens of thousands of STRIPPERS. Yet Sefton are telling us that their Stripper wells in Leavenworth county are targeting the “Mississippian limestone it’s potential has not been extensively explored in Leavenworth County.” Really? Could it be that it’s been explored and discounted by the thousands upon thousands of oil companies operating in Kansas? They then go on to tell us about the potential 5 -35 bopd from the formation. Yes that’s right but those production figures are for new production; NOT FROM EXHAUSTED STRIPPER WELLS. We’ve already witnessed the Sefton Production from Kansas it is averaging 0.53 of a barrel per well from 18 wells! = 9.6BOPD.
Coal-bed Methane Gas
“In Leavenworth, Atchison and Jefferson counties where Midcontinent’s operations are located, coal-bed methane gas production has been combined with McLouth gas production, therefore a report indicating coal-bed methane gas production rates is not available from public sources.” This statement has got to be the biggest crock of shit I’ve ever had to read. Most coal-bed gas development in eastern Kansas is in the Cherokee basin, in a five-county area near the Oklahoma state line — Chautauqua, Labette, Montgomery, Neosho, and Wilson counties. Several pilot projects have been initiated farther north in the Bourbon arch and Forest City basin, but the economic viability of these pilot projects has yet to be determined.That is a stone cold fact. There’s NO Coalbed Gas action in Sefton’s Stripper wells In Leavenworth, Atchison and Jefferson counties. To try to infer otherwise is yet another deception. http://www.kgs.ku.edu/PRS/publication/2004/AAPG/Coalbed/P1-02.html
What you have here is a company that has a 12 year track record of deception, lies and failure. Whether it be Tapia production, Dr Ali steamflood, Dilution, Placings, Consolidation, Turd (third!) party gas customers, Pay, Expenses, “Consultancy fees”, Pension pot payments or Directors who have played their part on the Board of bankrupted oil company’s. It is 12 years of deception, deceit and failure.
The Kansas operational update was nothing more than an attempt to manipulate trading volumes so that they could sell & DILUTE stock through their EFF Death Spiral. Make no mistake Sefton are desperate for cash! Do not for one moment think that Kansas is the saviour of the company. It is a smoke-screen. This company is Rotten to the core. Bankruptcy beckons!
Dan Levi. Truth & Justice fighter for all!