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Sefton shares surge as it keeps up oil production in California

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Sefton Resources' (LON:SER) shares advanced to trade around 9% in late morning deals after it revealed positive results from its steam-based production enhancement programme in California.

Earlier this year, Sefton’s subsidiary TEG Oil & Gas completed a steaming pilot programme on the Tapia Canyon oilfield to boost production.

This morning, Sefton revealed that after several months (4 & 5 respectively) since injection, both the Hartje #11 and #13 wells continue to produce oil above their baseline rates.

In September Hartje #11 produced around seven times its baseline rate, while Hartje#13 produced oil at two times the baseline. 

“These results are very encouraging and indicate the responsiveness of this reservoir to thermal stimulation,” Sefton said.

Additionally, Sefton has submitted an engineering study to the California Department of Conservation’s division of oil gas and geothermal resources (DOGGR) to conduct a six-month continuous steam "flood" injection study on the Hartje lease. 

“The proposed injection well, Hartje #10, is surrounded by six producing wells that can benefit from the injection in both heat and in pressure support.”  

A decision is expected from the DOGGR in the next week.

The company also updated investors on its oil production volumes, which it said remain relatively steady.

In September Sefton shipped around 4,445 barrels of crude oil, generating US$305,000 in gross revenue. 

“The steam programme has clearly stabilized the Tapia oil production to this point ... It is believed that additional injection of heat will be necessary in the coming months to continue this trend and add additional oil to the production stream,” the company said. 

The company highlighted that its gross revenues have exceeded the US$300,000 mark in California for each month since June. 

Quick facts: Sefton Resources, Inc.

Price: - GBX

AIM:SER
Market: AIM
Market Cap: -
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