Sefton Resources, Inc., the independent exploitation and production company with assets in the East Ventura Basin of California and the Forest City Basin of Eastern Kansas, provided an operational update on its most recent activities.

Highlights:

Oil in California

Oil production rises to approximately 135 barrels per day during August. Steam flooding pilot project sees oil production from Hartje #18 well boosted by 60% with increased reservoir pressure recorded at neighbouring Yule #5 well. Four wells planned for drilling during November at Tapia Canyon oil field. A subsidiary of Occidental, the fourth largest US oil exploration company, has begun drilling the adjacent Wayside Canyon Oilfield, less than a mile away from Tapia Canyon. (The field represents a virtual mirror image of Sefton's Tapia Canyon oil field only separated by a series of small faults). Gas in Kansas

Letter of intent signed to acquire a fourth gas pipeline plus adjacent wells and leases. Agreement with Southern Star expected to be signed in late September to connect Sefton's pipelines from Leavenworth County to their interstate pipeline. Significant progress with repairing the LAGGS pipeline system. On going discussions with an exploration and production company which has significant acreage along the Vanguard pipeline for transportation of their gas through the Sefton pipeline system. On going acreage acquisition program being developed based on the company's residual trend surface mapping techniques. Jim Ellerton, executive chairman commented: "We are making good progress both in California and Kansas and now have in place a strong operational base, strong balance sheet and good cash flows from which to grow the business.

"In California, oil production is rising on the back of steaming and we are looking forward to the publication of Dr Ali Farouq's report in October which will give us a clear indication of the potential and value of our interests in California as well as how to fully develop them.

"In Kansas, 40-50% of Sefton's target areas for development in Leavenworth County and those in the surrounding areas remain underexplored due to a lack of activity over the past ten years. We believe this presents a significant opportunity for us."

Tags: Sefton Resources