Sefton announced its intention to purchase additional assets in Eastern Kansas and year-end 2010 reserves.
Additional Kansas Assets
On February 3, 2011 the company signed a Letter of Intent ("LOI") that gives it exclusive rights to execute and close a Purchase and Sale Agreement with Cholla Production LLC ("Cholla") by the end of March 2011. Sefton acquired a pipeline from Cholla in 2010 (please refer to announcements made 3 March 2010 and 11 January 2011). The additional assets acquired from Cholla consist of approximately 1,200 net leasehold acres, 18 wellbores which are capable of recompletion and associated technical data. The purchase price agreed in the LOI is US $200,000. Final closing of this transaction is subject to the successful execution of a Purchase and Sale Agreement.
Year-End 2010 Proved Reserves
Sefton's proved reserves totaled 3.8 million barrels at year-end 2010. The Company grew proven 2010 reserves by 7.45% compared with 2009 and replaced 512% of its estimated 2010 net production volumes. The changes from 2009 year-end estimated proved reserves to 2010 year-end estimated proved reserves included production of approximately 51,225 barrels of oil and upward revisions of 262,290 barrels of oil. Additions, including revisions, were primarily attributed to the Company's successful cyclic steam pilot program in Tapia Field, which was initiated in 2009.
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