News and Press Releases
Company and Trading Update
5 May 2015
The board of Sefton (the “Board”) is pleased to provide an update on the Company, its activities and its
financial position.
Update on the Kansas Assets
The Company’s primary business assets at present are its two subsidiaries operating in Kansas, USA:
TEG MidContinent Inc. and TEG Transmission LLC (collectively, the “Kansas Assets”). The Board
continues negotiations over the potential sale of the Kansas Assets (as previously announced on 24
February and 31 March 2015) and hopes to conclude an agreement before the end of June. The Kansas
Assets are not currently producing hydrocarbons as current market prices for both oil and gas would not
make this profitable, and the assets require significant capital investment to maintain regular production
and commence pipeline operations.
Financial results for the 13 months to 31 January 2015
The Board expects to publish its audited annual report and accounts for the 13 months to 31 January 2015
during the second half of June 2015 which will then be followed by an Annual General Meeting of the
Company which the Board intend to convene for August following publication of the annual report and
accounts. During this period the primary activity of the Company was undertaken by its former
subsidiary, TEG USA Inc. (“TEGU”), which was sold following the approval of shareholders at the
Company’s extraordinary general meeting held on 30 January 2015. During the period, TEGU produced
a total of 28,898 barrels of oil, generating revenues of circa US$2.4m. The Company’s secondary activity
was the operation of the Kansas Assets, which produced 2,350 barrels of oil during the same period,
generating revenues of circa US$0.1m. The combined loss on disposal of TEGU and the proposed write
down of the value of the Kansas Assets is estimated at US$7.5m (the “Impairment Charge”). The
Company’s operating loss, before the addition of the Impairment Charge, is estimated to have been
approximately US$0.6m. TEGU will be accounted for under International Financial Reporting Standards
as a discontinued operation and the Kansas Assets as assets held for sale. As at the end of the period, the
Company had cash resources of circa US$27k; as at the end of April 2015, cash resources stood at circa
US$507k. The above financial figures are provisional in nature, unaudited and remain subject to possible
change during the Company’s audit.
Future board changes & the possible acquisition of oil and gas assets
The Board is currently undertaking a recruitment process for a new Chief Executive Officer (“CEO”), and
hopes to announce the appointment during May. Furthermore, the Board continues to explore
opportunities regarding the possible acquisition of oil and gas assets in accordance with the strategy
outlined in the announcement of 2 February 2015, but have concluded that it would be inappropriate to
finalise any agreements until the Company has appointed the new CEO, finalise the Company’s future
strategy and the CEO has had the opportunity to analyse and discuss the proposals. As announced on 23
April 2015, the Company intends to also appoint other new members of a non-executive capacity to the
Board shortly. In the interim, Mr. Keith Morris and Mr. Tom Milne continue to work with Ms. Raylene
Whitford (Chief Financial Officer) on implementing the near term goals.
Raylene Whitford, CFO, commented, “2014 was obviously a difficult year for the Company, but 2015 has
brought with it a new level of optimism. I expect the remainder of the year to be time of positive change
and significant growth for both the Company and our shareholders. We have firmly turned a corner and
have our sights set on a new strategy which will be executed by a qualified team whose primary aim is to
deliver value to our 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 |