As you all know Myself and my good pal Tom Winnifrith are fighting on behalf of UK Investors to expose the lies, deceit and manipulation that is Sefton Resources. We have for our troubles been served a writ for Libel which is being fought tooth and nail. We both expect to win our respective cases and eagerly wait to put our evidence, which is substantial, before a UK Judge & Jury. The problem being that Sefton could very well go Bankrupt before we have a chance to unmask them for what they are.
The fantasy at Sefton Resources continued unabated today as the company, desperate to suck in more cash from unsuspecting naïve UK Investors, headlined a $26 million dollar valuation on their Kansas “Leavenworth leases” the CPR author Dr Nafi Onat (Dafti) Yes the very same chap that has been drawing tens if not hundreds of thousands of dollars from Sefton for the last 10 years through his one man band company, (Notso) Sure Engineering LLC, has now been paid to come up with yet another (RAMP) valuation that is simply fantastical in it’s stupidity.
Dr Dafti has increased the Leavenworth value tenfold from the 2011 $2.57 million dollar fantasy to a truly ridiculous $25.99 million dollars! “The report also estimates the PV10 value of future cash flows from Sefton’s oil and gas proved reserves and unproved resources in Leavenworth County, Kansas at this time of US$25.99 million dollars” Screams the RNS. A closer look unmasks the manipulation. “Unproved resources” Therein lies the key to the manipulation for leases that contain defunct gas pipelines & stripper wells. A stripper well is one that is coming to the end of it’s economic life or to put it into an easy to understand term, bottom feeding.
These “Valuations” raise more questions than they answer. Were the lease-holders told that their leases were worth millions? I don’t think so do you? Were the lease-holders paid hundreds of thousands of dollars for their individual leases? I don’t think so do you? Maybe some one should contact them and tell them that the few hundred dollars the landman paid them should according to Dr Dafti be several hundred thousand dollars a lease. Maybe some one is already contacting them? Maybe they’ll turn up in our witness statements.
Unproven Resources? So just how much of this gargantuan net valuation ($25.99 million dollars) is based on the Unproven? Try $20,000,333 million three hundred and thirty three thousand dollars! Yes that’s correct over $20 million dollars are based on Unproven Resources. Sheer fantasy.
And of the remaining net $5.66 million dollars why $4.01 million dollars are Proved Undeveloped Reserves. PUD are defined as reserves (coal, gas or oil) that are expected to be recovered from future wells and facilities ie more capex needs to be invested to realise them.
So that leaves a $1.65 million dollar net value of which $702,000 thousand dollars is PDNP proved developed non-producing AND $930,000 OF PD proved developed. So the reality is that the proven net value of Kansas Leavenworth is $930k. Yet again you’ll only be able to work this out if you scroll down to the bottom of the RNS. Here’s a tip for would be investors always read Sefton RNS’s in full.
Of course this way of promoting Sefton isn’t new to Jim or his Board you can see this modus-operandi in Oilsands Quest, Stone Mountain Resources and Teton Energy. All three oil company’s made similar claims & had Sefton Board members involved with them before they went Bankrupt owing hundreds of millions of dollars. Steam assisted Gravity Drainage, Steam generators, CPR reports & steamflooding were all to different degrees proclaimed here as well.
These super valuations for abandoned pipelines & stripper well leases are not worth the paper they’re written on. Ask Thomas Milne, Sefton Director, who has been up before the Beak in the USA for fraudulently inflating company value by $136 million dollars. Milne and his co-accused have now agreed to cough up $10.2 million dollars in damages to the Plaintiffs in the Oilsands Quest class action for fraud. Have Sefton not told you this? I wonder why?
Hawaii life not withstanding. It’s obvious that Sefton are feeling the heat here. Cash is critical and as ever Jim isn’t going to put any of his cash into Sefton to keep the fantasy going. Let’s face it Jim won’t even pay for his Hawaii flights. So Jim is rolling the dice yet again trying to sucker in more UK Investors who haven’t got the time and patience to go through Jim’s 12 years of deceit, lies and manipulation.
Maybe Jim could declare how he came to “Lose” $300,000 dollars to his pals at Monument Resources for assets that he failed to buy. Assets that Jim’s former company Powerhouse shuffled over to Monument before they went Bankrupt. *Amended 4 April 2013* Assets that may now find their way onto Seftons books after Monument went Bankrupt. Maybe Ellerton can clear up the mess and explain what’s going on? Who owned what and who now owns what? Of course Jim knows how to contact his former pals at Monument because Monument were working out of the same office’s as Sefton at 2050 Oneida street Denver. These “carousel assets” have a chequered history and I can assure you that upon examination you’ll find Jim’s and Dr Dafti’s fingerprints all over them.
Share-holders may also want to ask Jim about Larry Culbertson the Kansas chap running round buying up leases that he’d already plugged and abandoned years before. Don’t worry I’ll be asking Jim, Larry, Kurly & Mo these very questions at the forth-coming Libel trial on your behalves.
Expect more of these laughable attempts to kick start the Sefton sp so that they can dilute and sell into the increased trading volume through Darwin Strategic and the aptly named Death Spiral (EFF). I see some poor saps bought in today at over 0.7 of a penny. They’re already down 15% to 25%.
Don’t forget the Aim Regulation Team as well as the FSA are watching events unfold here.
Do not invest in this sham of a company. If you are in then get the hell out.