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May 2011 Jim Ellerton, CEO AIM: SER

AIM: SER - Sefton Resources · 2011-05-27 · Directors Jim Ellerton-Chairman and CEO, Sefton Mr. Ellerton has over 30 years of multi-discipline experience in the development and

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Page 1: AIM: SER - Sefton Resources · 2011-05-27 · Directors Jim Ellerton-Chairman and CEO, Sefton Mr. Ellerton has over 30 years of multi-discipline experience in the development and

May 2011

Jim Ellerton, CEO

AIM: SER

Page 2: AIM: SER - Sefton Resources · 2011-05-27 · Directors Jim Ellerton-Chairman and CEO, Sefton Mr. Ellerton has over 30 years of multi-discipline experience in the development and

Directors

Jim Ellerton - Chairman and CEO, SeftonMr. Ellerton has over 30 years of multi-discipline experience in the development andevaluation of oil and gas prospects throughout the major basins of North America. Hehas major oil company background (Texaco) and independent company start-up andmanagement experience, and is one of the original founders of Sefton Resources.

Karl F. Arleth – Non-executive Director, SeftonMr. Arleth is currently Managing Partner of Blue River Resources LLC, a Denver-based private oil and gas start-up firm engaged in the acquisition and development of U.S. producing properties. He has over 30-years of domestic and international oil and gas experience, including 22 years at Amoco and BP.

Mark R. Smith – Non-executive Director, SeftonMr. Smith currently is sole practitioner of law at Mark R. Smith PC in Calgary, Alberta Canada and has been involved in the energy industry for over 20 years. He has in-depth knowledge of securities law, mergers and acquisitions and oil and gas transactional law and serves on a number of boards and subcommittees of both private and public entities.

* We will be adding additional non-executive Directors and splitting the role of Chairman/CEO

2

Page 3: AIM: SER - Sefton Resources · 2011-05-27 · Directors Jim Ellerton-Chairman and CEO, Sefton Mr. Ellerton has over 30 years of multi-discipline experience in the development and

Company Overview

London Stock Exchange AIM Code: SER.L

Shares Outstanding: 280 MM (3/28/11)

Management Ownership: 13.0%

YTD H/L: 9.75p / 1.6p

~Market Cap. / ~EV*: £14.0 MM / £18.0 MM

YTD Average Daily Volume*: 12,000,000 shares

6-Month 2010 Net Production: 28,000 BOE

(153 BOPD)

(100% Oil)

Producing Well Bores: 27

Proved Reserves (12/31/10): 3.8 MMBOE

(100% oil / 42% PD)

$80.6 MM PV-10 @

$71.38 Bbl

Acreage Gross / Net: 51,772 / 51,772

Core Areas: California / Kansas

Fiscal Year End: December 31

Natural Gas

Heavy / Medium

Crude Oil

Ventura Basin

100% WI / 90% NRI

Forest City

Basin

100% WI /

87.5% NRI

Denver HQ

CA

CO

KS

3

* EV = Enterprise Value (Debt + Equity)

Page 4: AIM: SER - Sefton Resources · 2011-05-27 · Directors Jim Ellerton-Chairman and CEO, Sefton Mr. Ellerton has over 30 years of multi-discipline experience in the development and

Our Strategy

• We acquire long lived, partially developed reserves with controlling interest, that

are shallow and have access to markets and infrasructure, in areas that are

politically stable and yield a minimum internal rate of return (IIR) in excess of

30%

• Selectively acquire core asset positions at bottom to mid commodity price cycle

• Develop core assets with company funding, retaining operatorship and a high

WI%

• At appropriate stage of development and asset maturity, leverage remaining

growth potential with third-party capital through drilling funds, JVs, farmouts and

strategic alliances

• Accelerate growth via material acquisitions

• Maximize long-term shareholder return through selective strategic asset sales at

the top of the commodity cycle or through a merger

4

Page 5: AIM: SER - Sefton Resources · 2011-05-27 · Directors Jim Ellerton-Chairman and CEO, Sefton Mr. Ellerton has over 30 years of multi-discipline experience in the development and

$0.0

$1.0

$2.0

$3.0

$4.0

$5.0

2004 2005 2006 2007 2008 2009 2010

Capital Expenditures

$0.0

$1.0

$2.0

$3.0

$4.0

$5.0

2004 2005 2006 2007 2008 2009 2010

Oil and Gas Sales

-$1.0

$0.0

$1.0

$2.0

$3.0

2004 2005 2006 2007 2008 2009 2010

Cash Flow From Operations

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

$40.00

2004 2005 2006 2007 2008 2009 2010

Lifting Costs

6 Year Financial Summaries

(from Audited Financials)

($M) ($M)

($/Bbl)($M)

5

Page 6: AIM: SER - Sefton Resources · 2011-05-27 · Directors Jim Ellerton-Chairman and CEO, Sefton Mr. Ellerton has over 30 years of multi-discipline experience in the development and

6

Share Price Performance 2011

(Sefton) (AIM Oil & Gas Index)

Page 7: AIM: SER - Sefton Resources · 2011-05-27 · Directors Jim Ellerton-Chairman and CEO, Sefton Mr. Ellerton has over 30 years of multi-discipline experience in the development and

Ventura Basin California

Steam flood exploitation project (Yule Zone)

Sefton controls 262 gross and net acres

100% WI and 90% NRI (CWC ~$600,000)

27 wells on production making 130 BOE/d

Cyclic steaming 2010, continuous 2011

7 remaining infill locations

OOIP 11 MMBO

Targeted bolt-on acquisition potential

2.5-acre spacing with 1-acre down-spacing

potential

1 mileN

Tapia Field

Development exploitation project (marine/miocene

Sandstones)

Sefton controls 1,510 gross and net acres

100% WI and 83.3% NRI

6 wells on production making 8-15 BOE/d

2 remaining infill locations

At least one wildcat well, from geology/geochem data

27° API sweet crude

Targeted bolt-on acquisition and deeper pool potential

Eureka Canyon Field

7

-----JV & Acquisition

Targets

Tapia Steam

Flood Analog

Page 8: AIM: SER - Sefton Resources · 2011-05-27 · Directors Jim Ellerton-Chairman and CEO, Sefton Mr. Ellerton has over 30 years of multi-discipline experience in the development and

Tapia Oil Field

Rugged canyon drilling targeting Yule Oil at depths of 1,100’

Estimated OOIP 11 MMBO with 50% current estimated recovery; ultimately 65% -

70% via full steaming program

Minimum surface disturbance and multiple-well pads

Received state award for clean up of acquired assets and ongoing care and

maintenance of new and existing wells and surface facilities

Prices normally received are Midway Sunset (8% deduct to NYMEX light sweet)

17° - 19° API Gravity Crude

Hartje # 18 Well- Tapia

8

Page 9: AIM: SER - Sefton Resources · 2011-05-27 · Directors Jim Ellerton-Chairman and CEO, Sefton Mr. Ellerton has over 30 years of multi-discipline experience in the development and

Tapia Field Economics

9

Working Interest: 100%

Net Revenue Interest : 90%

Completed Well Cost: $590,000 to tanks

Well-head Oil Price: $95.00 Bbl @ wellhead

API°: 17-19

Operating Costs: $15.00 Bbl

Production Taxes: 6% - $5.50 Bbl

Trucking: $2.44 Bbl – offset by quality

adj.

Royalty: $9.50 Bbl

G&A $25 (@150 Bopd)

Total Deducts $55

Net Back: $40.00 Bbl

Gross Reserves/well 140 MBO (assuming 50% rec.)

Net Reserves/well 136 MBO

Bbls

0

25,000

50,000

75,000

100,000

125,000

150,000

175,000

200,000

Primary Recovery

Cyclic Steaming

Steam Flood

Total EUR High Case EUR*

21.7%

of OOIP

13.3%15.0%

50.0%

Up

to

70%

* High case dependent upon steam response

Per-well EURsType Well Assumptions

Page 10: AIM: SER - Sefton Resources · 2011-05-27 · Directors Jim Ellerton-Chairman and CEO, Sefton Mr. Ellerton has over 30 years of multi-discipline experience in the development and

Oil Production BOPD

10

Acquired Tapia

Workovers &

Water Disposal

Sefton IPO Blowout

Page 11: AIM: SER - Sefton Resources · 2011-05-27 · Directors Jim Ellerton-Chairman and CEO, Sefton Mr. Ellerton has over 30 years of multi-discipline experience in the development and

Production Forecast

11

Production ForecastInitial Tapia Development

Continuous Steam Forecast

Current Production

Tapia Acquired

Page 12: AIM: SER - Sefton Resources · 2011-05-27 · Directors Jim Ellerton-Chairman and CEO, Sefton Mr. Ellerton has over 30 years of multi-discipline experience in the development and

Forest City Basin Kansas

Los Angeles County

CBM and conventional oil and gas potential

Shallow horizons

Sefton controls 43,000 gross and net acres

100% WI and 87.5% NRI

Net coal thickness exceeds basin average

Midstream infrastructure: SER controls 22

miles of pipeline and 10MMCFD gas plant

Anderson and Franklin Counties

Los Angeles County

CBM and conventional oil and gas potential

Shallow horizons shut-in due to lack of

infrastructure

Sefton controls 7,000 gross and net acres

100% WI and 87.5% NRI

Targeted acquisition potential

Midstream infrastructure: SER controls 50

miles of pipeline (Vanguard, LAGGS)

Leavenworth County

12

Page 13: AIM: SER - Sefton Resources · 2011-05-27 · Directors Jim Ellerton-Chairman and CEO, Sefton Mr. Ellerton has over 30 years of multi-discipline experience in the development and

Assets

TEG MidContinent acquired a 22 mile pipeline

and a gas gathering/water disposal system,

including 17 inactive wells and 2 salt water

disposal wells in 2009

In addition, the acquisition provides sales

outlet, a 10 MMcf /d processing facility and a

“tap” into Quest’s pipeline which provides

TEG MidContinent with access to major gas

markets

PetroWaverly (Anderson Co., KS)

Midstream infrastructure: SER controls

approximately 50 miles of inactive pipelines

Access to major gas markets

Gathering and transportation for 3rd party

gas, Sefton equity gas

Opportunity for exploration joint ventures

Vanguard / LAGGS/Cholla (Leavenworth Co., KS)

13

Page 14: AIM: SER - Sefton Resources · 2011-05-27 · Directors Jim Ellerton-Chairman and CEO, Sefton Mr. Ellerton has over 30 years of multi-discipline experience in the development and

Anderson/Franklin Counties

Major Pipelines

Acquired Pipeline &

Facilities

Major Oil Fields

Primary

objective: CBM

Secondary

objective:

shallow

underlying oil

fields

Access to major

pipelines

Have initiated

pilot CBM

drilling program

“Opportunistic acquisitions in a low price environment position Sefton for growth as

gas prices increase”

14

Page 15: AIM: SER - Sefton Resources · 2011-05-27 · Directors Jim Ellerton-Chairman and CEO, Sefton Mr. Ellerton has over 30 years of multi-discipline experience in the development and

Leavenworth Upstream

15

Primary objective:

conventional gas and

midstream

infrastructure

Secondary objective:

CBM

Control of gas

gathering and access

to major pipelines

Have initiated

aggregation of area

infrastructure by

acquiring two pipelines

Page 16: AIM: SER - Sefton Resources · 2011-05-27 · Directors Jim Ellerton-Chairman and CEO, Sefton Mr. Ellerton has over 30 years of multi-discipline experience in the development and

Leavenworth Midstream

26 miles of pipeline

Access to interstate

pipelines/potential gas

storage

Third-party gas can be

transported

Vanguard Pipeline

16

Gas Storage

FacilityMajor Interstate

Pipeline

LAGGS Pipeline

• 20 miles of pipeline

• Access to interstate pipeline

• Adjacent wells being acquired

• Potential for Sefton Equity gas

and third party gas transport

LAGGS

Cholla

Assets

Page 17: AIM: SER - Sefton Resources · 2011-05-27 · Directors Jim Ellerton-Chairman and CEO, Sefton Mr. Ellerton has over 30 years of multi-discipline experience in the development and

Group Financial Overview

17

2010 2009 2008 2007

Oil and gas sales (net of royalties) $3,622,049 $2,739,282 $4,688,183 $2,977,691

Interest and other income $3,726 -- $390,000 $417

Operating expense ($795,950) ($617,042) ($1,040,573) ($672,845)

Net from oil & gas $2,829,825 $2,122,240 $4,037,610 $2,305,263

General and administrative ($1,444,048) ($1,409,056) ($1,774,819) ($1,519,848)

Interest expense ($291,902) ($277,181) ($192,264) ($78,578)

Subtotal ($1,735,950) ($1,686,237) ($1,967,083) ($1,598,426)

Net Cash $1,093,875 $436,003 $2,070,527 $706,837

DD&A ($437,079) ($426,898) ($462,685) ($304,965)

Share-based compensation ($116,313) ($196,223) ($162,528) ($197,220)

Retirement liability ($137,266) ($108,178) ($1,112,109) --

Subtotal ($690,658) ($731,299) ($1,737,322) ($502,185)

Net Income $403,217 ($295,296) $333,205 $204,652

Page 18: AIM: SER - Sefton Resources · 2011-05-27 · Directors Jim Ellerton-Chairman and CEO, Sefton Mr. Ellerton has over 30 years of multi-discipline experience in the development and

2010 Reserves

18

PDP

PDNP

PUD

Poss. (Kansas)

383

2009 Proved Reserves (MBO)

PDP

PDNP

PUD

2010 Proved/Possible Reserves (MBO)

3,400

3,500

3,600

3,700

3,800

3,900

To

tal P

rov

ed

(M

BO

)

2009

2010

2009 v. 2010 Total Proved Reserves

Sefton Resources, Inc.

California Assets Proved Reserves

Year-end 2010 GAAP Constant Price Case (Average Price Case)

Discounted at

10% per year

Reserve Category Oil (MBO) Gas (MMCF) ($000s)

Proved Developed Producing 461 0 $ 11,921

Proved Developed Non-Producing 1,146 0 $ 25,590

Proved Undeveloped 2,195 0 $ 43,085

Total Proved 3,802 0 $ 80,596

Price deck: $71.40 Avg. price, Tapia and Eureka Fields

Sefton Resources, Inc.

California Assets Proved Reserves

Year-end 2010 (Future Strip Pricing)

Discounted at

10% per year

Reserve Category Oil (MBO) Gas (MMCF) ($000s)

Proved Developed Producing 482 0 $ 15,942

Proved Developed Non-Producing 1,150 0 $ 35,038

Proved Undeveloped 2,194 0 $ 58,894

Total Proved 3,827 0 $ 109,874

Price deck: $88.05 Bbl (12 Month Future Strip)

461

2,195

1,146

2,138

768

634

Page 19: AIM: SER - Sefton Resources · 2011-05-27 · Directors Jim Ellerton-Chairman and CEO, Sefton Mr. Ellerton has over 30 years of multi-discipline experience in the development and

19

Sefton Reserves & Resources Summary

(5/16/11)

Reserve Category Oil (MBO) Gas (BCF)Undiscounted

$(MM) PV10 $(MM)

Proved Developed Producing (PDP) 461 0 $19,486 $11,921

Proved Developed Non-Producing (PDNP) 1,146 0 $50,291 $25,590

Proved Undeveloped (PUD) 2,195 0 $107,671 $43,085

Total Proved (P1), YE 2010 3,802 0 $177,448 $80,596

Possible (YE 2010 Anderson/Franklin) 0 2.3 $11,687 $6,164

Possible (May 2011 (Leavenworth) 0 0.53 $2,200 $1,200

Total Possible (P3) 0 2.83 $13,887 $7,364

Resources Category

Contingent (May 2011) 1,748 15.7 $106,100 $68,900

Prospective (May 2011) 0 34.8 $112,100 $30,000

1,748 50.5 $218,200 $98,900

Grand Totals 5,550 53.33 $409,535 $186,860

Page 20: AIM: SER - Sefton Resources · 2011-05-27 · Directors Jim Ellerton-Chairman and CEO, Sefton Mr. Ellerton has over 30 years of multi-discipline experience in the development and

2011-2012 Outlook

California

Corporate

Kansas

Grow cash flow through developing existing assets - 2011

Strengthen balance sheet - 2011

Utilize outside capital sources for core area growth and acquistions -2012

Tapia: Increase production through continuous cyclic steam program, drilling and design full steam flood -2011

Eureka: Identify farmout candidates for deeper pool test

Pursue regional JV opportunities - 2012

Leavenworth Project:

Consolidate regional pipeline assets -2011

Activate acquired pipelines - 2011

Aggregate Sefton and third-party production - 2011

Leverage additional upstream and midstream assets utilizing outside capital - 2012

Anderson County:

Evaluate CBM and conventional oil and gas exploitation - 2012

Evaluate midstream assets for gas-gathering opportunities - 2012

20

Page 21: AIM: SER - Sefton Resources · 2011-05-27 · Directors Jim Ellerton-Chairman and CEO, Sefton Mr. Ellerton has over 30 years of multi-discipline experience in the development and

Summary

• Diversified asset base with current oil production / Contrarian

gas play mix

• Profitable with solid, cash flowing asset

• Strong banking relationship with leading O&G lender

• Motivated management team and directors aligned with

growth strategy

• Undervalued oil asset metrics, gas value upside

21

Page 22: AIM: SER - Sefton Resources · 2011-05-27 · Directors Jim Ellerton-Chairman and CEO, Sefton Mr. Ellerton has over 30 years of multi-discipline experience in the development and

Contact

Corporate Headquarters

Jim Ellerton, CEO

Sefton Resources, Inc.

2050 South Oneida St.

Denver, Colorado USA 80224

Tel: +1-303-759-2700

Fax:+1-303-759-2701

www.seftonresources.com

Broker

Clive Mattock, Dowgate Capital Stockbrokers

Tel +44 (0)1293 517 744

Jon Levinson, Rivington Street Corporate Finance

Tel: +44 (0)20 7562 3357

Nomad

Nick Harriss, Religare Capital Markets

Tel: +44 (0) 20 7444-0800

Investor Relations

Dr Michael Green, Investor Relations Consultant

Tel: +44 (0) 7855 734970

Financial Public Relations

Alex Walters, Cadogan PR

Tel : +44 (0)20 7839 9260

22

Disclaimer

This presentation is for information only and does not constitute or form part of any offer or invitation to sell, issue, purchase or subscribe for (or any

solicitation of any offer to purchase or subscribe for) the securities described herein in any jurisdiction. No reliance may be placed for any purposes

whatsoever on the information contained herein or on its completeness. All investments are subject to risk. The value of the securities, if and when offered,

may go down as well as up. Past performance is no guarantee of future returns. No representation or warranty, express or implied, is given by the Company

or any of their subsidiaries or any of their respective advisers, officers, employees or agents, as to the accuracy, fairness or completeness of the information

or opinions contained in this document or expressed in the presentation and no liability is accepted for any such information or opinions (which should not be

relied upon) or for any loss howsoever arising, directly or indirectly, from any use of this document or its contents or information expressed in the

presentation. This presentation contains certain "forward-looking statements”, including without limitation, expectations, beliefs, plans and objectives

regarding the potential transactions and ventures discussed in this release. Among the important factors that could cause actual results to differ materially

from those indicated by such forward-looking statements are the risks inherent in minerals exploration, the need to obtain additional financing, the availability

of needed personnel and equipment for future exploration and development, fluctuations in the prices of commodities, and general economic conditions.

Page 23: AIM: SER - Sefton Resources · 2011-05-27 · Directors Jim Ellerton-Chairman and CEO, Sefton Mr. Ellerton has over 30 years of multi-discipline experience in the development and

Appendices

23

Page 24: AIM: SER - Sefton Resources · 2011-05-27 · Directors Jim Ellerton-Chairman and CEO, Sefton Mr. Ellerton has over 30 years of multi-discipline experience in the development and

Corporate Structure

24

Sefton Resources, Inc. (AIM: SER)

(British Virgin Islands)

CEO

VP Operations & Engineering Engineering Consultant

Reed W. Ferrill & Associates, Inc.

TEG Oil & Gas USA, Inc.

(Colorado)

Tapia

Canyon

Field

(Oil)

Eureka

Canyon

Field

(Oil)

California

TEG Mid-Continent, Inc.

(Colorado)

Anderson /

Franklin

Projects

(Gas)

Leavenworth

County

Project

(Gas)

E. Kansas

100%100%

CFO

(2011)

Page 25: AIM: SER - Sefton Resources · 2011-05-27 · Directors Jim Ellerton-Chairman and CEO, Sefton Mr. Ellerton has over 30 years of multi-discipline experience in the development and

Timeline

History

2000-2008

Initial Public Offering December

2000 through Tapia acquisition

Complete initial technical

evaluations on Tapia

Establish current technical and

operating team

Began re-drilling Tapia Nov. 2002

Bank facility 2007

Acquired Eureka Field 2002

Completed 2 geochemical

exploratory surveys at Eureka

Initiate pilot steam project at Tapia –

March 2008

Recent Activity Going Forward

2011-2012

Continued Tapia and Eureka

development

Continuous steam stimulation of

Tapia wells

Drill additional wells at Tapia

Design full steam-flood program

Activate Vanguard, Cholla pipelines

Continued development of Forest

City acreage

Pursue focused, bolt-on acquisition

opportunities for growth

2009-2010

Continued exploitation of Tapia

leading to full development scenario

Commenced cyclic steaming and

continuous steam pilots

State Award for Excellence in

Lease Maintenance (09-10)

Acquired Forest City Basin

infrastructure assets

Continued geologic and

engineering evaluation of Forest City

Basin (Conventional and CBM)

Partially developed, high WI% and NRI% with long-lived, operated reserve base

Targeting established producing areas with access to markets and support services

Shallow drilling

Invest CAPEX in projects with 30% or greater Internal rate of return (IRR)

Application of modern technology: SAGD, horizontal drilling, completion design

Growth through core asset development and strategic acquisitions

25

Page 26: AIM: SER - Sefton Resources · 2011-05-27 · Directors Jim Ellerton-Chairman and CEO, Sefton Mr. Ellerton has over 30 years of multi-discipline experience in the development and

Steam Flooding

Benefits

What is Steam Flooding

Dr. Farouq Ali - HOR Heavy Oil Recovery Technologies, Ltd.

A method of Enhanced Oil Recovery (EOR) where steam is injected into dedicated wells and heated oil is effectively moved to surrounding oil producers

Also called steam-drive

Heat from steam and pressure from injection dramatically increases oil mobility in the subsurface

Oil recovery is commonly double that of primary methods (pumping only) – but can be much greater

Recognized as a world-wide expert in thermal Enhance Oil Recovery methods

Has examined / designed oilfield steam applications for over 200 locations including many in California

Completed initial study for application of steam flood at Tapia Oilfield

Currently completing refined steam simulation modeling and steam flood design for Tapia

26

Timeline

Tapia Steam Flood Pilot (currently active) : March 2011 – March 2012

Geologic Modeling (Petrel Robertson, Calgary) : January 2011 – April 2011

Improved Geologic Model (based on additional drilling) : Q1 2012

Steam Flood Simulation Modeling: Initial study : November 2010 (completed)

Detail study : April 2011 - May 2011

Modified / improved study : Q1 2012

(based on steam pilot data and additional drilling results)

Oilfield Unitization, Permitting & Steam Plant Design: April 2011 – April 2012

Well Drilling (oil producers) : Q4 2011

Construction and Implementation (steamflood) : Q3 2012 - Q4 2012

Page 27: AIM: SER - Sefton Resources · 2011-05-27 · Directors Jim Ellerton-Chairman and CEO, Sefton Mr. Ellerton has over 30 years of multi-discipline experience in the development and

Tapia Topography

27

Page 28: AIM: SER - Sefton Resources · 2011-05-27 · Directors Jim Ellerton-Chairman and CEO, Sefton Mr. Ellerton has over 30 years of multi-discipline experience in the development and

Field Shots

28

Page 29: AIM: SER - Sefton Resources · 2011-05-27 · Directors Jim Ellerton-Chairman and CEO, Sefton Mr. Ellerton has over 30 years of multi-discipline experience in the development and

Steaming Unit Specs

29

Water is sourced at the field

Meets strict LA AQMD emissions requirements

Custom unit built in 2007 by Clayton Industries

Rated at 14,290,000 BTU per hour

Self-contained PLC / safety controls

Equipped with a low NOx burner

Trailer mounted for multiple location use

Facilities for cyclic steaming and associated

production increases in place

Flexibility to choose steam-generation fuel source

based on price and availability for uninterrupted

steam flood activities

– Utility gas

– Propane

– Lease gas (Sefton production)

Page 30: AIM: SER - Sefton Resources · 2011-05-27 · Directors Jim Ellerton-Chairman and CEO, Sefton Mr. Ellerton has over 30 years of multi-discipline experience in the development and

Production Operations

DOGGR Operator Award 2009 & 2010

Facilities for cyclic steaming and associated

production increases in place

Flexibility to choose steam-generation fuel source

based on price and availability for uninterrupted

steam flood activities

– Utility gas

– Propane

– Lease gas (Sefton production)

Upgraded Facilities

Multi-well Pad Drilling

Minimizes Surface Impact

Steam Unit

30

Page 31: AIM: SER - Sefton Resources · 2011-05-27 · Directors Jim Ellerton-Chairman and CEO, Sefton Mr. Ellerton has over 30 years of multi-discipline experience in the development and

Tapia – Snow #3 Log

31

Yule Sand

Page 32: AIM: SER - Sefton Resources · 2011-05-27 · Directors Jim Ellerton-Chairman and CEO, Sefton Mr. Ellerton has over 30 years of multi-discipline experience in the development and

Tapia Oil Field

1

The well is drilled

through the oil

zone & casing

pipe is cemented

in place.

2

The oil zone is

under-reamed to

12” to 14” to allow

for an effective

filter pack.

3

A stainless steel

wire-wrapped

screen is placed in

the oil productive

well bore.

4

Uniform gravel is

pumped into the

annular space

between the screen

and formation sand

5

The gravel and screen

allow the oil and gas to

produce into the well

while filtering out

formation fines.

Oil-saturated

sandstone

shale

Typical gravel-pack filter screen completion as used on new oil wells

Process reduces workovers, increases recovery/reserves and lowers costs

shale

32

Page 33: AIM: SER - Sefton Resources · 2011-05-27 · Directors Jim Ellerton-Chairman and CEO, Sefton Mr. Ellerton has over 30 years of multi-discipline experience in the development and

Yule Sand Structure – Tapia

7 Infill Locations

33

1

2

3

4

5 6

7

Page 34: AIM: SER - Sefton Resources · 2011-05-27 · Directors Jim Ellerton-Chairman and CEO, Sefton Mr. Ellerton has over 30 years of multi-discipline experience in the development and

Eureka Canyon Field

Development exploitation project (marine/miocene

Sandstones)

Sefton controls 1,510 gross and net acres

100% WI and 83.3% NRI

6 wells on production making 8-15 BOE/d

2 remaining infill locations

At least one wildcat well (Deeper Pool)

27° API sweet crude

Geochem data acquired

Targeted bolt-on acquisition potential

34

Page 35: AIM: SER - Sefton Resources · 2011-05-27 · Directors Jim Ellerton-Chairman and CEO, Sefton Mr. Ellerton has over 30 years of multi-discipline experience in the development and

Eureka Canyon Field

AREA OF HISTORICAL OIL

PRODUCTION SHOWING

DEPLETION

AREAS OF STRONG

EXPLORATORY

POTENTIAL

PHASE 1 AREA NOT

ENHANCED BY

PHASE 2 SURVEY

0’ 2500’ 5000’ 7500’ 10000’

Phase 2 Infill Survey

35

Page 36: AIM: SER - Sefton Resources · 2011-05-27 · Directors Jim Ellerton-Chairman and CEO, Sefton Mr. Ellerton has over 30 years of multi-discipline experience in the development and

Jim Ellerton, CEO

AIM: SER