It’s one of the most unbelievable energy stories of the year.
A Chinese oil company was sitting on what might be the last great oil discovery on Earth - a potential $6.75 billion per year field on the banks of the White Nile.
They spent $144 million and sunk 9 wells. 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 $6 Billion Mistake
- Stamper Oil’s Secret Weapon
- A Fortune On The White Nile
- The Sudanese Oil Dream Team
- $144 Million In Free Infrastructure
Beijing’s $6 Billion Mistake
A little over a decade 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 nine wells and spent $144 million on infrastructure.
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. If they knew what to look for, they might have unlocked a 300,000 bpd find.
With oil trading north of $60 and forecast production costs of $17-20 per barrel - that’s $6.75 billion in potential gross profit that they abandoned on the White Nile.
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 astonishing 99 percent success rate.
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 two-huge oil blocks that the Chinese company had let go.
Fulford immediately figured out what they 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.
What are his hopes in Sudan? The country, Fulford reckons, “is one of the last great finds.” There could be an elephant field out there on the banks of the White Nile.
The Last Great Oil Discovery On Earth
Fulford took his findings to the Sudanese government and convinced them to have its state-run oil company, Sudapet Petroleum, drill eight test wells.
The first five “structural” oil wells proved underwhelming. But the last three “stratigraphic” holes gushed oil at a rate of 2,500 barrels per day (bpd).
Based on Fulford’s finds, Stamper Oil & Gas signed MOUs with two Sudanese companies in October 2017, giving them access to blocks in Sudan’s southern oil fields.
Estimated reserves on Stamper’s area are around 149 million barrels.
Fulford predicts Stamper can pump out 20,000 bpd at a cost-per-barrel of only $17-$20
(compare that to the $50-$75 it costs to produce a barrel of oil in Alberta).
That means $292 million in annual gross profit is just waiting to be tapped.
Now they’ve identified 20 wells that can be drilled from Al-Rawat, which Fulford says
should be worth 300,000 (bpd) once production is up and running.
At the current market price of about $60 for Sudan’s light-medium crude, that amounts to $18 million per day – or $6.57 billion per year.
That’s twice as much as Iran’s huge Agha Jari oil field.
And, Stamper has the team to execute on it.
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 last great discovery on Earth.
You already know about George Fulford. He’s the gold standard in Sudanese oil exploration, and he’s leading Stamper’s exploration and development campaign.
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 Consolidated Gold Mines and SNS Silver Corp, and he’s ready 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.
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 $144 Million Gift from China
With a potential 300,000 bpd project like this, located deep in the remote border regions of Sudan - you’d typically be facing millions in infrastructure 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 $144 million of infrastructure 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 potential 149 million barrel discovery.
According to George Fulford - Mr. 99 percent - it has production potential of 300,000 bpd, with an estimated cost of just $17-20 per barrel.
At today’s prices, that’s potentially $6.75 billion in White Nile oil profits.
Once Stamper and its Sudanese partners are finished constructing a 37-mile pipeline, it’ll be ready to move thousands of barrels quickly, cheaply and with minimal effort.
The time to pay close attention is right now.
By Ian Jenkins
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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.
hese 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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