Sefton Moves Forward Despite Area Fires

Sefton Resources Inc, the AIM listed oil and gas production company with assets in California and Kansas announces that significant progress was achieved during the final quarter of the year despite the fires that caused havoc in California.

Production from Sefton's wholly owned subsidiary TEG USA averaged 193 BOPD during the month of December, 2007, thus finishing the year with a strong production increase at the Tapia Field in California. This increase was due to the excellent results from the two-well drilling program completed in late November. The two wells, Hartje#16 and Hartje#17 had combined 30 day average initial production rates of 78 BOPD. This increase in oil production, combined with record oil prices, has resulted in a significant improvement in cash flow.

TEG USA plans to follow up these drillings with a three-to-four well drilling program beginning in February. These planned wells will be similar in scope to the previous wells. TEG USA entered into a drilling contract with Kenai Drilling on Jan. 8, 2008 to perform this work.

TEG MidContinent moved cautiously during 2007, responding to the varied results achieved by industry operators in the Forest City Basin in Kansas. It has selectively focused on prime acreage in its lease acquisition program and undertaken geological and engineering studies.

During the year TEG MidContinent acquired an additional 5,000 acres and now its Anderson and Franklin County project is comprised of approximately 36,000 acres. The additional acreage has close proximity to pipelines and is supported by extensive geology, including detailed coal maps. The acreage is situated such that TEG MidContinent has coverage on both conventional oil and gas possibilities and on the thicker, potentially more productive, Bevier and Riverton coal deposits. In addition TEG MidContinent's acreage position in Leavenworth County is now 7,000 acres, which also provides excellent potential for both conventional and unconventional gas plays.

TEG MidContinent has contracted for design of a "pilot drilling program" that is expected be implemented during 2008. Discussions continue with a number of potential joint venture partners which would allow TEG MidContinent to expand the planned drilling program.


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