Sefton Resources has reached a provisional agreement with a third party to sell all of the assets and liabilities of Sefton's two wholly owned subsidiaries: TEG MidContinent Inc. and TEG Transmission LLC for a cash consideration of US$400,000. The Agreement will result in the third party buyer assuming all immediate plugging liabilities for all wells, which, if borne by the Company, would cost in excess of US$500,000 in Q3 2015.
If the Agreement results in a completed transaction, this move will signal Sefton's exit from all operations in the US, which will be a significant moment in the turnaround of the business.
Completion of the sale of the Kansas Assets remains subject to, inter alia, Sefton and the buyer of the Kansas Assets entering into definitive sale and purchase agreements as well as approval by Sefton shareholders at a general meeting of the Company. Should the transaction proceed the Company will be disposing of its entire existing trading business and, accordingly, the Company would be re-classified as an investing company under Rule 15 of the AIM Rules of Companies. Sefton would also be required to adopt an investing policy which would need to be approved by shareholders in a general meeting concurrently with the sale of the Kansas Assets.