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 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.

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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