Sefton sees continuing increase in daily oil production

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."

MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

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.

NR