Sefton results take a dive

2nd Sep 2011 07:20

California and Kansas-based oil and gas firm Sefton Resources reported a fall in profits from $335.8m to $74.4m for the first half of the calender year, blaming increased expenses and a 29% decrease in oil production. Revenue for the period rose by 4.3% from $1.93m to $2.02m, helped by a firmer oil price, but this was offset by expense costs rising to $872,000 (2010: $680,000). Jim Ellerton, who took up the role of Executive Chairman in August 2011, said: "This year has seen the foundations laid for the creation of a growing business at Sefton. "Operationally, the company took a number of significant steps to develop the group's assets and pursue opportunities to maximise revenues both in the short and the medium term." Oil and gas production costs also rose 63% in 2011, which the company said was primarily due to the, "implementation of the continuous pilot steam-flood programme in the 2011 period versus the cyclic steam-flood pilot programme in the 2010 period." As of June 30, 2011, the $10m senior debt facility with the Bank of the West has been reaffirmed and extended until 1 June, 2013.NR