Sefton Resources thwarted by oak trees
Sefton Resources, the US-focused oil company, has seen the drilling of one of its wells in California delayed by a bureaucratic impasse.
Sefton Resources, the US-focused oil company, has seen the drilling of one of its wells in California delayed by a bureaucratic impasse.
Sefton needs "permit clearance" from the Los Angeles authorities to dig its Hartje 20 well but officials have raised concerns over the "proximity of the well to nearby oak trees and the impact of the drilling to significant ridge lines in the area."
The company says it has provided evidence that these concerns are unfounded but admits it has been waiting six months for a decision.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely 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
Sefton says it has completed drilling of the three other wells planned at its Tapia site, one of which encountered 30 feet of oil, the results from the other two wells are still being assessed.
Jim Ellerton, Executive Chairman, commented: "Whilst we are disappointed not to have drilled the last of the four wells planned at this time, we are very encouraged by what we have been able to achieve with the resources available, which will increase production at Tapia Canyon field in California."
So far this year Sefton has seen its share price rise 67%.
BS
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
-
Review: The Store, Oxford – purveyors of excellence
MoneyWeek Travel The Store is a luxurious, new hotel in Oxford that has set up shop in a former department store in the heart of the city
By Chris Carter Published
-
Seven ways the Budget could hike inheritance tax or capital gains tax at death
Chancellor Rachel Reeves could target death taxes by raising IHT and/or levying CGT on inheritances. We look at some potential moves in the Autumn Budget
By Ruth Emery Published