Hot Features
Premium
Register for streaming realtime charts, analysis tools, and prices.
Aim listed penny dreadful oil producer Sefton Resources (LSE:SER) is at it again with another RNS press release which contains a lie. This is such a blatant lie I wonder how anyone can now believe a word that chairman Jim Ellerton or his IR gopher sidekick Doctor Green now says. It is sheer comedy. Of course there is a serious issue in that Sefton desperately needs to issue equity soon. It will – as things stand – be out of cash (but not debt) within two months. Tick tock. Tick tock. Tick tock. That is why the stock remains a sell at a share price of 1.18p with a target price of 0.01p
You can read my analysis of Sefton’s near terminal cash position here
Now to the lie. In today’s RNS it states: “Net oil production figures reported to the Californian Division of Oil, Gas & Geothermal Resources (“DOGGR”) for October 2012 were 3,478 barrels of oil which equates to 112 barrels of oil per day (“bopd”); compared with 103 bopd in September 2012 and 96 bopd for August 2012 – in line with previous announcements.”
In line with previous announcements? Jim Bob and Doctor Doolittle you are having a larf. You two should go write press releases for the Rotherham social services child snatchers – you could actually say it all with a straight face.
Your previous RNS on this matter (9th November) stated:
Preliminary oil production data for California has been compiled for the month of October 2012 and indicates an average of 115 barrel of oil per day (BOPD) produced compared to 108 BOPD for the month of September 2012.
You will notice that the September number has been cut. So someone who did not tell lies would have said that production in September was “not in line” with previous announcements. Jim Bob and Doctor Dolittle state that production was “in-line” Surely even the most deranged Bulletin Board loon ( Montyhedge are you reading?) can appreciate the difference and that today’s release is therefore a lie.
BB loons please note that saying someone is a liar when they issue a release which is so obviously, and comically, a lie is not defamatory.
The only reason this statement was made at all is that a man called Dan pointed out to Sefton’s NOMAD the actual data on the DOGGR website and suggested that Sefton needed to fess up to the lie.
There is a broader issue here. And that is that when announcing its dismal first half numbers on September 11th Sefton promised that it would boost second half output (and thus profits) via waterflooding, steamflooding, blah blah blah. It went into great detail on this matter and even said that some days in the second half had seen output of 170 bopd. It cannot have been many days.
Jim Bob has confirmed that the capex for that programme has been undertaken (at a not immaterial cost). However while first half output averaged 120 bopd in H2 we have so far seen monthly scores on the doors of 116, 96, 103 and 115 bopd in the second half. Since December is bound to see a bit of downtime unless November is a blinder of a month (which it won’t be) H2 output will actually be lower than H1 output. That suggests that a profits (or lack of) warning needs to be issued.
To obtain a free twice weekly newsletter (INCLUDING A FREE SHARE TIP IN THE WEDNESDAY EDITION) from Tom Winnifrith with inks to all of his other articles on UK and US financial websites and special offers register HERE
Meanwhile to keep its band of diehard supporters happy we have news on the Steamflooding report from Dr (comical) Ali which was first promised three years ago and which Jim Bob has said will be published within a couple of months, every two months since. We are now told that:
A geocellular model of the Tapia Canyon oil field (“Tapia”) is complete and presentation of this 3-D model by the developers Petrel Robertson (“Petrel”) is on the Company’s website for review (www.seftonresources.com). This is a key component needed by Dr Ali for his initial simulation analysis which he has scheduled to be completed by year-end.
Whoaaa steady on their Jim Bob or Doctor Doolittle. So the geocellular wotsit is a key component allowing Comical Ali to finish his report (well at least provide initial analysis) which you commissioned more than three years ago – so when did you commission Petrel to do its geocellular study? Three years ago? Really. Or is that a very much more recent development? Pray tell.
I am sure that one day Comical Ali’s opus magnus will see the light of day. No doubt it will sate that if Sefton spends x it will have a project worth y. But the problem for shareholders in Sefton (where capex of $18 million since 2007 has yielded an operating profit – pre bloated PLC and interest costs – of $5 million) is that by January it will have almost no cash. Just debt.
Jim Bob and Doctor Doolittle can tell whatever lies they want via RNS. Comical Ali can say whatever he wants in his report. The point is that Sefton’s coffers are almost empty. My target price of 0.01p looks increasingly generous. Sell.
Meanwhile back to Sefton’s desparate cash position. I remind shareholders that time is running out. Tick tock. Tick tock. Tick tock.
Libertarian investment writer Tom Winnifrith writes extensively for a number of US and UK financial websites. All of that material appears on his own blog, which also carries his extensive original non financial material, at TomWinnifrith.com – for alerts on all Tom’s writings follow him on twitter at @tomwinnifrith
Tom
You should have read all of the 09 Nov RNS .
California oil production
Preliminary oil production data (tank data) has been compiled for the month of October, 2012. This data indicates an estimate of 3,573 barrels of oil produced or approximately 115 barrels of oil per day (BOPD) compared with equivalent numbers of 108 BOPD in September 2012 and 98 BOPD in August 2012. The final number will be available after oil sales numbers are provided to TEG USA (Sefton’s wholly owned subsidiary) by our oil purchaser, in which oil volume is adjusted for any shrinkage to API specification and with basic sediment and water (BS&W) removed, which is typically a reduction of around 4%.
Tom
You used the word lie ,lied ,lies or liar about 9 times in that piece.
Jim’s lawyer may want a word .
I dam well hope Jim’s lawer will want a word with this idiot
‘laviniamalabe’ and ‘Nick’. Tom Winnifrith has repeatedly invited Sefton Resources to sue him as he has repeatedly called them liars.
The fact that they have not done so should be a warning to you.
C.H.I.
I have no position in SER , i was pointing out that the reason for the difference between the Preliminary oil production numbers and the numbers reported to DOGGR was made clear in the RNS on 09 Nov.