Sefton boosts oil production

8th Sep 2011 14:45

California and Kansas-based oil and gas firm Sefton Resources has announced a rise in production during the month of August. Production rose to 135 barrels per day (bpd), up from an average of 110 bpd for the fist half of the year, as a result of improved infrastructure at the Tapia Canyon oil field, where the company has signed an agreement for four new wells. Successful production from these wells would significantly increase primary oil production by the year end, the company said. Executive chairman, Jim Ellerton, said: "We are making good progress both in California and Kansas and now have in place a strong operational base, strong balance sheet and good cash flows from which to grow the business."In California, oil production is rising on the back of steaming and we are looking forward to the publication of a report in October which will give us a clear indication of the potential and value of our interests in California as well as how to fully develop them."In Kansas, 40-50% of Sefton's target areas for development in Leavenworth County and those in the surrounding areas remain under-explored due to a lack of activity over the past ten years. We believe this presents a significant opportunity for us."The company is also conducting a steam flooding pilot project at the Tapia Canyon oil field, which saw it inject 19,000 barrels of steam during August (July: 16,700), resulting in increased production at the well. The share price was up 2.94% to 2.62p at 15:27. NR