Did Somalia sell $67billion worth of assets for 10 million dollars? - Political Forum

Inan’Ta · #1 (**permalink**) 07-16-2007, 04:58 PM

Atleast according to Taipan financial news.

Quote:

Resource Stocks: Blood in the Streets

You may remember Somalia as the scene of the Black Hawk Down incident in 1993. That's when vicious rebels attacked and killed 18 American soldiers in the streets of Mogadishu. Nearly 14 years later, the country is still raging with violence, as tribal warlords battle radical Islamic insurgents for control of the region.

On April 20, USA Today reported that 113 people had been killed in the streets of Mogadishu. And Reuters reports that a mass exodus is underway as more than 320,000 people have fled the city in recent weeks. To make matters worse, Somalia's rugged coast is under siege by a band of bloodthirsty pirates.

On February 25, 2007, Somali pirates seized a U.N. vessel that was delivering 1,800 tons of food to refugees. And on April 4, pirates, armed with assault rifles, hijacked a 900-ton cargo ship and held it for ransom.

Bottom line: Somalia is in a state of absolute chaos.

Of course, commonsense would suggest people stay as far away from Somalia as possible. But because of the global oil crisis, Somalia is starting to look like the "promised land" to desperate oil executives.

Resource Stocks: The Promised Land

Back in the late 1980s, Somalia was considered one of the hottest oil explorations spots on the planet.

And in a 1991 World Bank study, the world's leading geologists put Somalia at the top of the list of prospective commercial oil producers.

That's because Somalia used to be attached to Yemen, before the Great Rift ripped up the Saudi peninsula from Africa, thus creating the Red Sea (about 300 million years ago).

According to the U.S. Department of Energy (DOE) Yemen has proven oil reserves of roughly 6 billion barrels.

And based on Somalia's similar terrain and close proximity to Yemen, experts believe that Somalia is also brimming with sweet crude.

The Los Angeles Times calls Somalia's oil reserves a "prospective fortune." And the Energy Bulletin calls Somalia "oil rich."

"It's there. There's no doubt there's oil," explains Thomas O'Connor, the principal petroleum engineer for the World Bank, who headed an in-depth study of Somalia's oil prospects.

And make no mistake: Big Oil is hungry for Somalia's black gold. In fact, they've been after it for years.

Resource Stocks: Big Oil Heads for the Hills

In fact, as early as 1986, Conoco, along with Amoco, Chevron, Phillips and Shell all obtained exploration licenses from Somalia, reports the Los Angeles Times.

You can be sure, Big Oil was chomping at the bit to drill Somalia's black gold. And they had it right in their hands!

But guess what?

In January 1991, Somalia's dictator, Said Barre, was assassinated by murderous tribal warlords, and Somalia was thrown into absolute chaos.

Big Oil had to pull back on their exploration plans. Of course, the oil lobby put the heat on the first President Bush to do something. And in 1990, Bush sent troops into Somalia.

Unfortunately for Big Oil, Somalia didn't much like the U.S. presence, and in October 1993, under the Clinton Administration, tribal warlords launched a deadly attack on the U.S. Marines in Mogadishu's Bakara Market.

In what became known as the "Black Hawk Down" incident, 18 American soldiers were killed by a mob of vicious thugs.

Much to Big Oil's despair, support for troops in Somalia faded fast... and in March 1994, the Clinton administration withdrew the U.S. military.

With violence raging, and the Said Barre government gone, Big Oil's Somalia contracts were deemed worthless.

Somalia has been a hornet's nest ever since.

Consequently, Somalia's oil-rich fields have been virtually untouched and unexplored by modern technology.

Bottom line: Somalia is now brimming with "sweet crude" just waiting to be turned into big profits!
Of course, Big Oil has been standing on the sidelines waiting for order to be restored for nearly 14 years.

But remember: Crisis breeds opportunity, and those who hesitate are lost.

That's exactly what has happened in Somalia...

You see, one tiny 90-cent oil exploration company found a way to exploit Somalia's chaos for a lucrative deal that could make you a bundle. In fact, it could hand you a 789% return in the next six months. In the long run, it could make you 60 times your money. Maybe more.

I'll tell you how to buy shares of this stock in just a moment, but first, let me show you how they literally snatched Somalia's oil fortune right out from under Big Oil's nose.

Resource Stocks: Steal of the Century

As I mentioned, Somalia has been in turmoil since Said Barre was assassinated in 1991.

The country basically split into pieces... with different tribal warlords controlling different parts of the country. In fact, according to Foreign Affairs magazine, Somalia is the only country in the world without a functional central government.

Back in 2004, the United States and the U.N. helped Somalia organize a Transitional Federal Government (TFG) in an effort to unify the country.

After all, stabilizing Somalia is important for the United States oil interests.

Now, almost immediately, the TFG announced to the world that Somalia was essentially open for business.

Prime Minister Ali Mohamed Gedi told reporters the country was prepared to offer oil, gas and mineral concessions to foreign companies, although this invitation came with a warning: all firms were to do business only with the TFG, and not make deals with the various tribal factions.

"Foreign companies should desist in attempts to deal with local authorities... without prior written consent from the federal government," Prime Minister Gedi said.

"Any violation of this will result in negative consequences and the responsibility will lie with the culprits. Until the government puts in place specific legislation for natural resources management, such as a national hydrocarbon law, it will be categorically impossible to give concessions."

Now, with all the uncertainty, Big Oil played it safe, and stayed away from Somalia.

Big mistake!

You see, while Big Oil was standing on the sidelines waiting for the chaos to settle down...

A tiny 90-cent oil exploration company, whom I'll call Oil Raider (not its real name), signed a shocking oil deal with the Republic of Puntland, one of Somalia's tribal regions.

How big is this deal?

Well, Puntland occupies the northeast tip of Somalia. It is right on Africa's Horn, directly across from oil-rich Yemen! Because of its location, experts believe Puntland is sitting on the bulk of Somalia's oil wealth.

In fact, based on oil exploration conducted in the Puntland region during the 1980s by Conoco, it is believed that Puntland hosts a BILLION barrels of recoverable oil !

And get this: Not only did Oil Raider secure an oil deal... it landed an EXCLUSIVE CONTRACT for 100% of the oil AND minerals in Puntland, including oil, coal, uranium, silver, iron ore, copper, lead, natural gas... everything!

And here's the stunning part: The deal only cost the company $10 million...

Think about that...

With oil prices at $67 per barrel, the petroleum side of this deal could be worth $67 BILLION.

And that doesn't even include the potentially massive supply of uranium, silver, copper and other commodities that Puntland is sitting on.

Oil Raider is tiny, with a market cap of $90 million. And now, with a mere $10 million investment, it controls natural resource assets potentially worth $67 billion!

That's 670 times (67B/100M = 670) their current market value.

I think you'll agree: The upside is absolutely staggering!

And it only gets better...

Because Oil Raider has acquired some of the old Conoco sites, drilling could begin very soon. A lot of the legwork and due diligence has already been done.

But while Somalia is in a state of chaos, the Puntland region is a relatively peaceful oasis that sees very little violence.

Somalia Watch reports that Puntland is a "stable, peaceful, self-governing regional State with a well functioning public administration firmly in place." And the U.N. Refugee Agency (UNHCR) agrees, stating that in contrast to the turmoil in Mogadishu, Puntland remains stable.

In addition, my source in East Africa personally conducted a trip into the heart of Puntland, where he met with the oil minister, the finance minister, and a tribal elder. He also visited Oil Raider's newly acquired sites and reports that there is no fighting in the area.

That means oil operations will not be subject to the same level of instability that the rest of the country is experiencing.

I'll tell you how to grab a few shares of this tiny 90-cent oil exploration company in just a moment. But first, let's take a look at how these guys landed such a lucrative contract.

Resource Stocks: A Suitcase Full of Crisp, Cool Cash

Now, you can be sure... some folks were not happy about this deal. In fact, my sources in Somalia tell me that many people believe the Puntland region got robbed.

The agreement is so unfavorable to Somalia that oil and gas industry experts were bewildered when its news was announced late last year.
Dr. Ali Abullaahi Barkadle, a Somali resource and management consultant living in Melbourne, Australia, says, "The Puntland contract gave an unfair advantage to [Oil Raider] by lumping together mining and oil concessions and giving the whole state -- roughly 212,000 square kilometers -- to a single company was unheard of."

He continues, "It seems the negotiators had a very limited understanding of the mining and oil industry or were in need of quick money."

Omar M. Abdi and Salah Fatah, correspondents for the WardheerNews Group, a Somali news portal, state, "We wonder if any other country has been robbed of its wealth as belligerently as the [Oil Raider] did to Somalia. An interesting analogy to this deal, in our opinion, is when the Dutch bought the island of Manhattan in New York in early 18th century from the native Indians for a bunch of beads amounting to 60 Dutch Guilders, which was later converted to about 24 US dollars."

And international commodity expert and best-selling financial author J. Christoph Amberger agrees: "[Oil Raider] negotiated the most one-sided deal in years. How they did it, I have no idea. They literally took Somalia's oil fortune for pennies on the dollar. I wouldn't be surprised to see early investors capture a 100-fold gain on this. It's got post-communist Russia written all over it."

Now, you may be wondering: How did Oil Raider get the Puntland government to give them potentially $67 billion in oil reserves for a mere $10 million?

Well, Somalia is a poor country. Long-range vision isn't a luxury they can afford. People are desperate and surviving day to day.

So... $10 million in the short term is simply too good to pass up. And there apparently was some additional "incentive" involved in the deal. In fact, my sources in Puntland indicate that in addition to the official $10 million... a suitcase full money found its way into the hands of the Puntland negotiators.

Didn't anybody object to this unfair deal? They sure did. In a letter to the Australian Stock Exchange, Somali Prime Minister Ali Mohamed Gedi stated that the deal between Oil Raider and the Somali state of Puntland was invalid because ONLY the country's Transitional Federal Government (TFG) could negotiate the sale of mineral and petroleum rights.

But then... Mr. Gedi had a remarkable change of mind!

In fact, within days of vehemently opposing the deal, Prime Minister Gedi fully endorsed the deal!

Now, what caused the Prime Minister to suddenly reverse course and endorse the deal?

Again, there's no proof. But my sources believe that a fat envelope full of cash probably found its way into Mr. Gedi coat pocket. (Watch the movie Syriana, and you'll see exactly how these backdoor deals happen!)

But regardless of why Gedi changed his mind... the fact of the matter is this: Somalia sold its financial future for a short-term cash infusion. Of course, Oil Raider did throw in a 10% royalty payment against future revenues.

And here's the good news for you: The tiny 90-cent stock I'm recommending today offers similar riches.

In fact, I believe a bidding war is on the horizon that could send Oil Raider's stock price soaring.

Resource Stocks: A Highly Strategic Location

As I mentioned, Oil Raider secured an exclusive contract for 100% of the oil, gas and natural resources in Puntland.

As you can imagine, Big Oil is pretty upset. And I don't blame them. Think about it: They had Somalia all locked up before dictator Said Barre was overthrown in 1991.

Big Oil knows Somalia is worth a fortune; they already had it right in their hands once... and now, tiny 90-cent Oil Raider has snatched it away.

But make no mistake: Both Big Oil and the U.S. Government want Somalia's oil reserves back.

You see, not only is Somalia's oil worth a billion...

...but Puntland/Somalia provides a highly strategic military location because it's situated on the coast, just miles from Saudi Arabia, and overlooks the daily passage of oil tankers and warships on their way to the Persian Gulf.

Whoever controls Puntland/Somalia... can block or protect the flow of oil to the West.

Resource Stocks: Takeover Bid on the Horizon

Now, because Oil Raider is publicly traded, Big Oil firms like Exxon and Chevron can simply conduct a takeover bid... and Somalia's oil fortune is theirs.

Big Oil is not shy about spending money to get what they want. And years of rising gas prices have filled their pockets with cash.

For a company like BP or Chevron, spending a few billion for a hot property is not a problem -- especially a property that practically guarantees a fresh and plentiful source of oil and gas.

In fact, in 2005, Chevron spent $17.3 billion to purchase Unocal. Conoco spent $35.6 billion to acquire Burlington Resources. And PKZ was ultimately taken over by China National Petroleum Corporation for $4.1 billion, or $55 per share!

Read on...

Resource Stocks: Tiny 90-Cent "Oil Raider" Stuns Tribal Warlords, Could Hit $8 by October 2007

Inan’Ta · #2 (**permalink**) 07-16-2007, 05:18 PM

Here is their Annual report for the year ended 30 of June 2006

http://www.rangeresources.com.au/fil...eport_2006.pdf

If you scroll down to page 21 on their Income statement, you'll see that the company had a loss of 10 million 744 thousand dollars.

But the funny thing, if you scroll further down to their Balance sheet at page 22, you'll see that they have calculated their Total assets as = 21 billion 591 million 851 thousand.

Remind you this's a company that has a current market value of 90 million dollars and a loss in 2006 report of almost 11 million dollars.

Guess where those assets come from? Yes, its the estimated/realistic value they can yield of the somali resources in short time. Can you focking belive this? This little shi#t company (with a market value of 90 million) has a whole state's resources listed as its own assets in the balance sheet of the annual report, absolutly fantastic.

But I personally don’t think that this's a valid contract here. The Puntland authority isn’t a recognized representative of the Somali people. For one to have a legally binding contract one needs to have the vested authority to act. Once a unilaterally recognized central authority is born, the contracts signed with illiterate, village leaders aka idiots (like this one) will be either withdrawn or renegotiated.

My future plans are on the line.