When will the long awaited news on Sefton Resources (LON: SER) finally drop? That’s the question the loyal share-holders of one of the most closely followed stocks on the London AIM are at this minute asking. The Bulletin Boards are awash with the usual hypothetical theories. Some I note are way out there, others seem to me to be nearing what the company are saying in their RNS’s.
Let’s recap on what we know. Sefton are in asset sale talks re’ Kansas assets. The cash from those sales isnt pencilled in at the moment but will be accruing on the balance sheet approx. last week June 2015. That means that whatever the sale value is then this will be added to the present cash balance announced via RNS on the 5th May. Cash at hand is circa $507,000 dollars. The cash from the sale should add significantly to the above amount. The cash from the recently converted warrants and my options will also add approx. $150,000. So in my opinion there’s plenty of cash on the book or about to come on the book. Running costs are minimal. The company are debt free.
CEO. The biggest single drawback at the moment is the still open position. Now we are all guessing as to who this may or may not be. I do not know who it is going to be. What I do know is that an RNS on who gets the job can’t be far away. I know this because it is common-sense. Once a CEO is in-stalled then I would imagine that as with the lifting of the cross-guarantee lien, he or she will or should move quickly regarding whatever assets are on the table and there is one thing that I did know before I stood down and that is that the asset negotiation’s were ongoing. My view is that they must be close to either final DD or at the very least some kind of site visit may have already occurred or could be about to occur. We just do not know. Because we are totally outside of the whole process and have been for quite some time now, I use my common Northerners sense. Would any company sign up for oil and gas assets without first having a site visit? No. Whether a site visit has occurred or is about to occur is a guess. Remember for all we know the company could have decided to go down a different route. At this stage we just really are in the dark and will have to await the news.
The problem with Sefton, as a company, trying to keep the news under wraps is that it’s becoming abundantly clear that news is being sourced by hundreds of avid share-holder watchers who believe they are coming close with some of their research. It can only be a matter of time before Sefton has to release an update on exactly what stage of dealings the asset negotiation’s are at. As a share-holder I would hope they get the deals done as quickly as possible. Share holder patience could start to wear thin. My opinion is that caution should be used when reading BB’s etc. As some who’ve emailed myself see it; Raylene Whitford may be feeling a little ‘over whelmed’ by the whole process. Be assured she is a tough cookie and will come through the process. From my time with her I can say unequivocally that she is the star of the show. In Raylene we trust.