LONDON, April 18, 2018 /PRNewswire/ --
FN Media Group Presents OilPrice.com News Commentary
Near the banks of the White Nile, in the mountains of East Africa, a huge discovery has been made. It's the one of the last great elephant fields of our day. Oil worth billions locked away in the unique geology of Sudan has just been uncovered, at a time when oil prices are rising and rising and rising. Mentioned in today's commentary: Pengrowth Energy Corp. (NYSE:PGH), Pembina Pipeline Corp. (NYSE:PBA), TransCanada (NYSE:TRP), Franco-Nevada Corporation (NYSE:FNV), Enbridge, Inc (NYSE:ENB).
The Chinese spent ten years and dropped millions searching for oil in Block 25, a 26,000 square kilometer oil concession in Sudan, but their seismic interpretation was way, way off. Now, Stamper can leverage those hundreds of millions in investment to take a big interest in a potential oil mega field.
The company is acquiring a major interest and tapping into the region's special geology on a property that within one year could pump out 6,000 bpd at a projected cost-per-barrel of only $17-20. That means the property has potential for millions in annual gross profit just waiting to be tapped. At 6,000 bpd the gross profits for these sales should come in around $20 million per year, and Stamper's interest would be over 31 percent.
The Sudanese Treasure Trove
On the southern Sudan border, Chinese oil companies spent ten years searching for structural oil deposits. They sank 13 wells and spent $100s of millions. But they came up short; there were no structural traps to be found. The Sudanese have since invested approximately $144 million drilling 8 new wells, 3 of which have proved out the stratigraphic play.
That's because the oil locked away in Sudan is not structural, but stratigraphic. A stratigraphic deposit is formed when oil and gas is trapped within sandstone, surrounded by shale.
The Chinese did not understand what they had, and they turned over the concession back to the Sudanese government.
That's where Stamper Oil & Gas (STMP, STMGF) comes in. Stamper Oil has a Memorandum of Understanding to purchase 100 percent of State Oil Corporation for 25 million Stamper shares plus expense reimbursement. State may farm-in up to a 50 percent interest in the Al-Rawat field pursuant to its MOU with Sudapet. State has an office and technical personnel in Sudan and on Stamper buying State, State will become a 100 percent wholly owned operating subsidiary of Stamper.
And Stamper is primed for a big success…because it's got the one man who has always struck it rich in the mountains of Sudan.
George Fulford: Mr. 99%
He's a legend in Sudan, with years and years of experience and countless connections. And he's now a senior consultant to Stamper. George Fulford, "Mr. 99%," who drilled 77 wells in Sudan in the 1990'sand achieved a near perfect success rate.
When the Sudanese took over from the Chinese, they, having learned of Mr. Fulford's conclusions and sank 8 wells, the last three focused on stratigraphic formations. Mr. Fulford was proven correct. As the boundaries are not known, the opportunity could be even greater.
While the structural plays came up short, the stratigraphic exploration yielded up to 2,200 bpd. Fulford's predictions were right on the money. So far Thirty-three wells have been marked for drilling and with this further drilling and planned seismic countless other prospects could be identified.
What are his hopes in Sudan? The country, he reckons, "is one of the last great finds." There could be an elephant field out there on the banks of the White Nile.
With 26,000 Square Kilometers, This Could Be An Elephant Field
With Fulford advising on seismic and drill sites and partnerships in place with Sudanese interests, Stamper (STMP, STMGF) is anxious to kick their work into high gear.
The Sudanese drilling crews have already sunk some wells on the Al-Rawat field to be acquired by State: one well tested over 2200 bpd. Estimated probable reserves on Block 25 developed and undeveloped area are around 182 million barrels, most of it locked away in stratigraphic deposits.
Operations are focused on the Rawat Basin and the Melut Basin, two sedimentary formations made up of sandstone, claystone and shales deposited over millions of years ago. And it gets better: the Al-Rawat fields are projected to produce at a low, low cost per barrel of $17-20. Part of that is because the Chinese shot or acquired around 6,700 km of 2D seismic and 1,000 sq. km of 3D seismic in their failed search for structural deposits…and left it all behind.
Stamper and its partners are going to start small and focus on achieving a 6,000 bpd flow. But they intend to grow to 33 more wells as the identified prospects are drilled and eventually come on line.
The oil has been locked inside sandstone since the time of the dinosaurs. But Stamper has the people in place to help extract it and realize the bounty from this bonanza.
The management at Stamper (STMP, STMGF) has the skills needed to reinvent the Sudanese oil industry.
CEO David Greenway has two decades of experience in managing, financing and developing growth strategies for a variety of firms, particularly junior public resource companies like Stamper. He achieved great success as CEO of Chief Consolidated Gold Mines and SNS Silver Corp, and he's ready to make similar gains with Stamper.
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.
And of course, there's Stamper's secret weapon, George Fulford, who has 40 years of experience as a professional geologist and worked in Sudan from 1994 to 2003, where he supervised more than 77 successful site selections.
Right now, Stamper (STMP, STMGF) is small potatoes: a little $14.6 million market cap firm with agreements ready to close in Sudan. But the discoveries there, Fulford's unique experience, and a bull market for crude should all work in the company's favor.
Investors need to wake up and pay attention. This is the one of the last great elephant fields, and Stamper can realize profits almost right away, thanks to all the investment made by the Chinese.
The company plans for 6,000 bpd within the first year of operations from existing wells. One well achieved flow-rates of 2,255 bpd in January, so there's little doubt it will achieve its goal. With an identified 33 wells drilling prospects, there is little doubt that daily production will increase markedly as they come on line.,
Stamper Oil & Gas has an opportunity to earn into what could potentially be the world's next big oil find, and the one of the greatest African oil treasure troves since King Tut.
Other oil companies that should be of interest to investors as prices are rising:
Pengrowth Energy Corp. (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.
Pembina Pipeline Corp. (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.
TransCanada (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.
Franco-Nevada Corporation (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.
Enbridge, Inc (NYSE: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.
By. Charles Kennedy
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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. 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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