It’s one of the most unbelievable energy stories of the year.
A Chinese oil company was sitting on what might be a major oil discovery - a 182-million-barrel probable reserve, with great potential to grow.
They spent hundreds of millions of dollars and sunk 13 wells, shot or acquired 6,700 km of 2D seismic, and shot over 1,000 km of 3D seismic. Then - thanks to a weird quirk of Sudanese geology - they gave away the entire African mother lode for free.
They literally abandoned their whole investment in the Al-Rawat Basin.
And, they’re doing it with an energy industry legend - the one man with a nearly perfect 40-year record of striking oil in the tricky rock of Sudan.
Here are five reasons you should be paying attention to Stamper today:
- China’s Huge Mistake
- Stamper Oil’s Secret Weapon
- A Fortune On The White Nile
- The Sudanese Oil Dream Team
- In Place Free Infrastructure
Beijing’s Huge Mistake
15 years ago, an oil hungry China made Sudan’s Al-Rawat Basin a major focus of their multi-billion dollar energy exploration machine.
One Chinese oil company spent ten years scouring the region for oil. Anticipating a massive find, they sank thirteen wells, acquired or shot 6,700 km. of 2D seismic and shot 1,000 sq. km. of 3D seismic spending $100s of millions in the process.
And, while they did strike a little oil - ongoing seismic studies determined their blocks held far less than they had anticipated. Eventually, they gave up.
The Chinese turned everything over to the Sudanese government.
The problem? It turns out they were hunting for the wrong kind of oil formation. If they knew what to look for, they might have unlocked a major oil find.
And, it’s all thanks to a man known as Mr. 99 percent.
Stamper Oil’s Secret Weapon
George Fulford is a legend in Sudan, with 40 years of experience and connections at the highest levels of the Sudanese petroleum industry.
He’s also known as “Mr. 99 percent." Why? Because after drilling 77 wells across the country, he can boast an almost unparalleled success rate in the industry.
No one alive knows more about Sudanese oil. So when the Chinese flopped in the Al-Rawat - it’s no surprise that Fulford spotted their mistake.
Four years ago, Stamper CEO David Greenway asked Fulford to interpret seismic data that had been done on the huge Al -Rawat oil concession that the Chinese company had let go.
Fulford immediately figured out what China had missed.
You see - the Chinese were looking for so-called “structural” deposits - the kind that nearly all oil exploration in the world looks for. Big mistake.
That’s because the oil locked away in Sudan is not structural, but stratigraphic.
These rare deposits are locked in place by cap rock, making them difficult to dislodge, and difficult to find… unless you know precisely what you’re looking for.
That’s George Fulford comes in. He’s worked with stratigraphic oil for years.
The Latest Great Oil Discovery On Earth
Sudapet Petroleum, Sudan’s national oil company, upon learning of this report drilled eight test wells.
The first five “structural” oil wells proved underwhelming. But the last three “stratigraphic” holes gushed oil at a rate of up to 2,200 barrels per day (bpd), thereby proving out Fulford’s hypothesis of a stratigraphic play.
Based on Fulford’s finds, Stamper Oil & Gas signed an MOU with State Oil Corporation (“SOC”) which has an MOU with Sudapet Co. Ltd, a Sudan company that has the oil development rights to some of the Al-Rawat Basin, giving SOC the right to purchase up to 50 percent of Block 25 in Sudan from Sudapet. So far there is an agreement in place for State Oil to buy 35 percent of Block 25.
Estimated probable reserves on the Al-Rawat field are around 182 million barrels.
Sudapet has 6,000 bpd ready to produce and will add the 33 wells to be drilled as they come on line, at a projected cost-per-barrel of only $17-$20 (compare that to the $50-$75 it costs to produce a barrel of oil in Alberta).
And Stamper has the team to capitalize on it. Stamper can buy 100 percent of SOC for 25 million Stamper shares and pay certain costs of SOC. SOC can earn a 35 percent interest in Block 25 developed oil fields for $40,144,000, and another $26,250,000 for the same participation in the development block of oil fields, plus its share of new well costs. All of these costs will be recovered through the Production Sharing Agreement with the Sudanese Government.
The White Nile Dream Team
The management at Stamper has the skills needed to reinvent the Sudanese oil industry - and capitalize on what might be the one of the last great discoveries on Earth.
You already know about George Fulford. He’s the gold standard in Sudanese oil exploration.
CEO David Greenway has two decades of experience in managing, financing and developing growth for junior public resource companies like Stamper.
He achieved great success as CEO of Chief Consolidated Gold Mines and SNS Silver Corp, and he’s aiming to make similar gains with Stamper.
CFO David Alexander has thirty years of experience in international finance and has helped identify stressed assets and developed a framework to realize value from those assets in excess of $1 billion. As CFO of Arakis Energy Corporation in the early 1990s, Mr. Alexander helped managed the company’s growth from startup to over a billion barrel in reserves primarily in Sudan. Arakis was subsequently sold to Talisman Energy.
Chairman Lutfur Rahman Khan has more than three decades of experience in the oil and gas sector. He’s well aware of the difficulties of working in Sudan.
As Chairman of Arakis Energy Corporation from 1995 to 1999, he oversaw the acquisition of a 12.2-million- acre oil concession in Sudan.
The concession was a huge triumph, with 1 billion barrels discovered.
Mr. Khan has also been active throughout Canada, Africa and the Middle East and controls several companies in the upstream and downstream sectors.
A Multi- Million Gift from China
With the potential of a project like this, with probable reserves bordering 182 million barrels, located deep in the remote border regions of Sudan - you’d typically be facing hundreds of millions in exploration costs.
But, once again - Stamper has an ace in the hole.
Imagine someone building a factory and equipping it with everything you need to produce one of the most in-demand commodities on Earth.
Now imagine they gave it to you for free.
That’s essentially what happened here.
You see - the Chinese built up $100s of millions of exploration in their failed search for structural oil deposits. They abandoned these assets as good as new.
This gives them a huge leg up when it comes to commercializing the find.
Years from now, we may view the story of Stamper Oil as one of the greatest “scoops” in the history of energy exploration. It may also be one of China’s biggest blunders.
We’re talking about a 182-million-barrel probable reserve discovery.
Operators of Block 25 can tap into the region’s special geology within a projected one-year start pumping out 6,000 bpd at a cost-per-barrel estimated at only $17-20, until production from 33 planned new wells being drilled can be added on
At 6,000 bpd gross profits should approximate $20 million before production sharing. That means potential for millions in annual gross profit is just waiting to be tapped. Stamper’s portion is set to be over 31 percent under existing MOUs.
The time to pay close attention is right now.
Pengrowth Energy Corp. (TSX:PGF, NYSE:PGH): Another company that looks to have halted its falling stock price and is now preparing to ride the bullish sentiment in oil markets. Having shed a lot of excess weight this year in massive asset selloffs, investors can expect a much leaner and meaner Pengrowth in 2018.
For those investors who like to follow the smart money, billionaire investor Seymour Schulich bought millions of extra shares in Pengrowth in early October, boosting his position from 19 percent of the stock to 24 percent. He claims that he is confident that oil and gas is going up.
Pembina Pipeline Corp. (TSE:PPL, NYSE:PBA): The North American pipeline industry has had a tough year, but the recent approval of the Keystone XL pipeline route and the growing need for transportation capacity should act as a boon for the sector.
Pembina Pipeline Corp. has ridden the oil price crash in an impressive manner, maintaining a good stock price and increasing its dividend. This is a stock that pays you to wait, and as the sector continues to improve it is likely investors will see good gains here.
TransCanada (TSX:TRP, NYSE:TRP): is a major oil and energy company based in Calgary, Canada. The company owns and operates energy infrastructure throughout North America. TransCanada is one of the continent’s largest providers of gas storage and owns and has interests in approximately 11,800 megawatts of power generations.
With TransCanada’s massive influence throughout North America, it is no wonder that the company is among one of Canada’s highest valued energy companies. Investors can feel comfortable with the company due to its huge and diverse portfolio, and continuing eye for success.
Franco-Nevada Corporation (TSX:FNV, NYSE:FNV) specializes in securing precious-metal streams, but the company also works in the oil and gas industry. With key assets in some of North America’s most desirable oil and gas plays, including Texas, Oklahoma and Alberta, it is clear that the company has amazing potential in the coming years.
FNV ended 2016 with a relative bang. And as oil and gas prices inch up, investors are watching this diverse company very closely.
Enbridge, Inc (NYSE:ENB, TSX:ENB), based in Canada’s oil sands capital Alberta, is an energy delivery company focusing on transportation, distribution, and generation of energy. Operating in the United States and Canada, Enbridge owns and operates the largest natural gas distribution network in Canada and the longest crude oil transportation system in the world. Founded in 1949, investors can feel confident in Enbridge’s experience and market know-how.
Though not strictly dealing in commodities, Enbridge’s diversified assets and connections to a variety of industries position the company as solidified player in many Canadian investors’ portfolio.
By. Ian Jenkins
**IMPORTANT! BY READING OUR CONTENT YOU EXPLICITLY AGREE TO THE FOLLOWING. PLEASE READ CAREFULLY**
This news release contains forward-looking information which is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ from those projected in the forward-looking statements. Forward looking statements in this release include that the Sudan oil discovery will prove as large and as significant as expected; that probably reserves can become proven reserves and that the reserves can be produced; that SOC will have sufficient funds to acquire and will pay for 35 percent of the developed oilfields of over $40M and then the undeveloped oilfields of over $26M,and that Stamper will be able to purchase 100 percent of SOC; that the Sudan project will be able to produce oil as currently scheduled and at the targeted low costs from its Sudan property; that STAMPER will obtain operating permits on its properties; that the oil when produced by STAMPER will be high quality suitable for standard use; and that STAMPER will be able to carry out its business plans. These forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Risks that could change or prevent these statements from coming to fruition include that Stamper may not get TSXV approval for its purchase of SOC; SOC may not be able to pay the costs of acquiring its 35 percent of Block 25; the group may not get regulatory approval for their operations, aspects or all of the properties’ development may not be successful, production of oil may not be cost effective as expected; there is substantial political risk and also risk of war in Sudan, which have the potential of disrupting or destroying production and assets; STAMPER may not raise sufficient funds to carry out its plans, changing costs for extraction and processing; increased capital costs; the timing and content of upcoming work programs; geological interpretations and technological results based on current data that may change with more detailed information or testing; potential process methods and resource recoveries assumptions based on limited test work with further test work may not be viable; world oil prices may drop; the availability of labour, equipment and markets for the products produced; and despite the current expected viability of its projects, that the oil reserves are not proven or cannot be economically produced on its properties, or that the required permits to build and operate the envisaged facilities cannot be obtained. Currently, STAMPER has no revenues. The forward-looking information contained herein is given as of the date hereof and the Company assumes no responsibility to update or revise such information to reflect new events or circumstances, except as required by law.
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