Sefton sees continuing increase in daily oil production

published 5 December 2012

Shares in Sefton Resources got a boost on Wednesday morning after the independent oil and gas exploitation and production company revealed that the preliminary oil production data for California in November indicated an average of 119 barrel of oil per day (bopd) produced compared to 115 bopd for the previous month.

The firm said the final number will become available once its oil purchaser provides it, and added that with basic sediment and water removed there is typically a reduction of around 4.0% per cent.

Jim Ellerton, Chairman of the board, said: "The results of cyclic steaming and juggling the wells are showing a steady increase in oil production over the past four months which is a good sign ahead of resolving the water disposal limitations."

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The number compared to 96 bopd in August and 103 and in September.

The group added that it is planning to resolve the most critical oil production limiting factor at Tapia by drilling a new water disposal well and said it has one of the relevant permits to carry this out, and is waiting on another.

The share price rose 8.7% to 1.25p by 9:00.