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 Last 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.
By. Ian Jenkins