Daily production at Sefton drops

Independent oil and gas exploitation and production company Sefton has said the preliminary oil production estimate compiled for September of this year on its California operations has indicated 3,244 barrels oil, equal to about 108 barrels per day, significantly lower than the average 170 barrels reported in July.

The firm warned that its water disposal issues continue to be the limiting factor in its production, but did say that daily average production is expected to improve significantly once the company carries out a number of planned enhancements, including cyclic steaming and water disposal restriction resolution.

September's figures are somewhat better than the previous month's, which came in at 98 barrels per day.

Subscribe to 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

In a statement the firm said: "With uncertainties associated with resolution of water disposal and timing of other factors, the company expects to see production steady for the balance of the calendar year with some mild improvements associated with the group's on-going cyclic steaming and production enhancements."

It added that the final production number for September will be available after oil sales numbers are provided to the company by the oil purchaser, which it expects to receive about mid-October.

The share price fell 19.35% to 1.25p in early trading.

NR