As you all know Sefton Resources and myself along with the hugely respected City of London Financial Journalist/Blogger Tom Winnifrith are in a fight to the death over claims of Libel. I can’t go into detail. I certainly don’t want to forewarn Pinsent Masons, Sefton’s’ mouthpiece & Company Secretary, of the mountain of evidence now stacked up in my locker. Once the protocols for the libel kick in (Disclosure) we will let them have it all.
But there are several points that I feel, in light of the shocking placing manipulations, lies and bopd deceits, UK Shareholders should know. Our sources are impeccable here and above and beyond reproach. As Sefton will shortly find out.
On the 10 Jan 2013 Ellerton stated: as he has on numerous occasions that; “The Company is planning to resolve the most critical oil production limiting factor at Tapia by drilling a new water disposal well. A DOGGR permit is in hand for this new well and we are still awaiting L.A. County to provide a permit. A rig is available once all permitting is completed” They got all the permits then back-tracked.
Of course Jim’s been trumpeting out this water excuse for years. But what Jim’s not telling you is that this is bollocks. The issue is more pressure than water volume. It all depends on the conditions within the geologic formations. How much water can be disposed off each year at Tapia & Eureka? Again the limits are based on the pressures within the formations not the amount of water. What that should tell you is this. Production is limited because the formations and pressures have to be correct so they need to drill expensive wells; they can’t use existing wells because the formations/pressures are all wrong. So Ellerton’s been at it again twisting the truth, as he has with his explanations about tank testing and the “New Regulations” .
Which in actual fact came into force in 2010. I’d hardly say that 2010 regulations are “New” in 2013. Another case of Jim stretching the truth beyond all recognition to deceive the market/investors.
And why was the new water disposal well Hartje #21 shelved? Well Jimbo would have us all believe “With the completion of the thermal stimulation report pending, the Board plan to review the findings of this report ahead of drilling any new wells (the Hartje #21 new water disposal well and the Hartje #20 new development oil well etc), so that they can be incorporated into a more comprehensive development plan” Really?
They haven’t got the money or the bonds to finance these drills. It’s as simple as that.
You can read all about Enhanced Recovery Wells here; http://water.epa.gov/type/groundwater/uic/class2/index.cfm I draw your attention to the words “recover residual oil and—in some limited applications—natural gas” There are no “gushers” coming from California or Kansas. Stripper wells.
What’s actually happened here is that cash is critical.
Sefton have left it to the last-minute before they were forced by the 2010 regulations to replace 2 tanks at Tapia because they are cash critical. Regulations such as; 1773.1 Production Facility Secondary Containment. 1773.2. Tank Construction and Leak Detection. 1773.3. Tank Maintenance and Inspections. 1773.4. Tank Testing and Minimum Wall Thickness Requirements. All came into force in 2010. Years ago! New Regulations? My Arse! Of course you can read all the relevant rules and regulations here: ftp://ftp.consrv.ca.gov/pub/
Water load of rubbish this company dribble out! Get out and stay out. Let the Day Traders have their fill.