Sefton Resources. An Open Letter to the Financial Conduct Authority & AIM Regulation.

An Open Letter to the United Kingdom Financial Conduct Authority & The UK AIM Regulation Team.
Financial Conduct Authority.png                                                                                      
8th April 2013
Dear Sirs,
As you are no doubt aware I am currently involved in a Libel writ with this company. Further to my on-going complaints regarding Sefton Resources. I now wish to add the following.

Once again Sefton has been caught in full glare misleading UK investors yet again. Less than 5 weeks ago and 24 hours ahead of a rescue share placing. This is market abuse pure & simple.

On the 5th of March 2013 Sefton announced “Preliminary oil production for California for Feb 2013 as 3443 barrels” Actual production was 2918 barrels. So just where did the 525 barrels go? Or more to the point when did they know the true figures? The company still have not announced this material financial fact. This is yet another “Manipulation” in a  long line of “Manipulations” going back over a decade.

On 6th March2013 Sefton announced that it had pocketed £650,000 of cash raised from (at 0.6p per share at a 30% discount) clients of Dowgate, Capital. Dowgate must have sold the stock on the back of a bullish production prediction/s when clearly this wasn’t the case.

There has been no update on February or March 2013 output from California/Tapia. Output numbers for Feb 2013 were sneaked out over the weekend. You can see them HERE-DOGGR  2,918 barrels which over 28 days works out at 104 bopd. The missing 525 barrels of oil equals 17.99% of the true Feb’ 2013, 2918 barrel production. What in the name of God is going on here? This is an outrageous calumny. You can not report figures ahead of a placing that on reflection are nearly 20% out. Sefton Resources have not released an explanation. No doubt they are working on one with Allenby Capital.

In the RNS of 5th March Ellerton stated: “Sefton is progressing its operations in both California and Kansas to allow for substantially higher oil production in the coming years.” He keeps making claims of a rising output trend in California. February 2013 output was lower than that in January and December. In fact there were only two months of 2012 (August and September) when it was lower.  Ellerton’s statements are becoming increasingly bizarre.

Where has 525 barrels of oil gone? Has it been sold on the black-market? Has it been shipped to Kansas to make it look as though Kansas production has started? Sefton updated that Kansas had produced 400barrels for the month of March 2013. Is this the Tapia oil? Or is it that the company have just lied? I do not know the answers to these questions. But you as the regulators can demand to see the books!

Suffice it to say that Sefton have also continued to release so called independent research that is paid for by themselves through Hardman&Co. And a truly ridiculous Dr Nafi Onat CPR on Leavenworth assets that purports to value  cash flow at $26 million dollars. An absolute blatant manipulation of the known data by $25 million dollars.

It has got to such a critical point now that the Board of Directors are blatantly telling lies with out any thought to the consequence’s of UK Investors who are being fleeced. This has been going on for 12 years.

Enough is enough Sir!

I am calling on you to immediately suspend this companies listing and refer them to the Serious Fraud Office which is what happened to a former company of Mr J Ellertons.(Powerhouse Resources).

I have for your perusal also attached our skeleton defence submissions which I wish to add to my complaint. I respectfully request that you read it in full. Every thing contained is 100% fact, backed up by evidence which has been lodged and served with the Queens Bench Division High Court London. As well as having been served on Pinsent Masons Seftons’ solicitors and oddly enough Seftons’ Company Secretary.

You as the regulatory bodies have a duty to protect UK Investors from sham companies such as Sefton Resources. The share-price is already down 18% today. The longer you fail to act the more damage to the Integrity & Reputation of The Aim Regulation Team & The FCA  there will be.

When they go into administration, and as sure as night follows day they will, then you as the people charged with the responsibility to protect UK Investors need to be seen to have acted upon complaints registered long before the bankruptcy that will leave UK Investors nursing losses running into tens of millions of pounds.


Daniel Levi

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