News and Press Releases

Update on future board changes, possible acquisition of oil and gas assets, potential litigation and exercise of warrants

29 May 2015

 

Update on future board changes

The board of Sefton is pleased to provide an update on the progress in regards to the recruitment of a new Chief Executive Officer. Further to the announcement of 5 May 2015, the Company has identified a preferred candidate with significant oil and gas industry and quoted company experience. The Company is hopeful of finalising terms for the new CEO’s appointment shortly. Negotiations are ongoing and a further announcement will be made once a firm agreement is reached.

In the interim, Keith Morris, Tom Milne and Jossy Rachmantio (Non-Executive Directors of Sefton) continue to work closely with Raylene Whitford (Chief Financial Officer) on implementing the near term goals of the Company.

Update on prospective acquisition of oil and gas assets

Further to the announcement released by Sefton on 5 May 2015, the Company confirms that it continues to explore and undertake primary due diligence regarding the prospective acquisition of oil and gas assets in accordance with the strategy outlined in the announcement of 2 February 2015. Once the appointment of the CEO is finalised, the Company intends to execute the planned strategy for the acquisition of future oil and gas assets which involves finalising the agreements required to progress this matter further.

Potential litigation

The Company has recently learned that a complaint was lodged on 14 May 2015 by Jim Ellerton (a former Executive Chairman of Sefton) in the District Court of Denver, Colorado against Sefton, two of its directors and a former director claiming unspecified damages in connection with his resignation from the board, the termination of the consulting contract pursuant to which he was providing services and the completion of the transaction with Hawker Energy. At this stage, Sefton has not been served with any court papers and a court date has not been set to hear the claims, however the Company and its Directors are actively seeking legal advice on the matter as well as working with D&O insurers. The Company will provide updates as the matter progresses.

It is anticipated that the CEO appointment will only be finalised after a complete assessment of the potential impact of these claims has been evaluated.

Exercise of Warrants

The Company has issued 24,409,091 new common shares of no par value (“Common Shares”) today following a final exercise request from Cornhill Capital Limited (“Cornhill”) of the 81,818,182 warrants to subscribe for Common Shares at a price of 0.1 pence per share, exercisable for a period of three years to 24 February 2018, as announced on 24 February 2015 (the “Warrants”). Cornhill now hold no Warrants as they previously exercised 57,409,091 Warrants at 0.1 pence per share as announced on 28 April 2015.

Following the exercise of the Warrants, the Company now has a total of 2,871,381,534 Common Shares in issue. An application will be made shortly for the 24,409,091 new Common Shares resulting from the exercise of the Warrants to be admitted to trading on AIM with effect from 4 June 2015.

Raylene Whitford, CFO, commented, “We continue to push forward with identifying and recruiting key Board members, as well as performing the essential technical, financial and legal due diligence on the potential targets as was outlined in the Company’s strategic statement earlier this year. This process takes time and needs to be thorough in order to deliver the highest levels of value to shareholders. Furthermore, our present situation is very dynamic, so I am grateful for the patience, confidence and support of our longstanding shareholders.”

Visit www.seftonresources.com or contact:

Raylene Whitford, Chief Financial Officer Tel: 020 7872 5570
Nick Harriss, Nick Athanas, Allenby Capital (Nomad) Tel: 020 3328 5656
Nick Bealer, Cornhill Capital (Broker) Tel: 020 7710 9612