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Blog: First Buffett, now T. Boone Pickens... billionaires keep increasing their oil sands holdings
September 3, 2013

Posted by Ron Daems, President

A new filing by celebrity billionaire T. Boone Pickens' BP Capital Management reveals the famous investor has increased his firm's position in Suncor Energy to 5.5 million shares --- representing a value of more than $160 million. (1)

This announcement comes right on the heels of Warren Buffett's disclosure that he's increased Berkshire Hathaway's stake to more than $500 million.

So just what do these billionaires know that's making them rush into Alberta's oil sands?

Rick George, the former CEO of Suncor Energy who built it into the largest integrated producer in Canada, has recently left Suncor to join a carbonate-bitumen company by the name of OSUM.

When asked about the prospects for carbonate bitumen production, Mr. George said: "I'm telling people that it's not a matter of if we figure out how to produce from the carbonates, it's when and how... The industry will figure this out and that will unlock a lot of oil here in Alberta." (2)

The way we see it, when the man who's known as "Mr. Oil Sands" leaves the biggest integrated oil company in the country and joins a "tiny" carbonate player, it's big news.

For us here at Strata Oil, we see things lining up very favorably for carbonate-hosted bitumen production. Plus, since Strata's holdings also comprise the oil sands formations, Strata Oil provides shareholders with serious value in both carbonates and sands --- giving investors the best of both worlds.

We have a recoverable resource of 887 million barrels of crude, and a total resource of 3.4 billion barrels --- our plan is to produce from it with a proven technology known as cyclic steam.

What's that worth at current oil prices? Well, before we increased our recoverable holdings by 70%, the net present value of our project was independently estimated at $1.3 billion. We haven't revised the net present value study to take into account the higher numbers, at least not yet. Meanwhile, we believe the value in Strata Oil is exceptional, potentially making it the most attractively priced company in the region.

I'll be in touch with you in the near future --- more news is coming. And one more thing --- if you're a high-net worth investor, and you haven't already done so, we encourage you to view:

T. Boone Pickens Buys More Suncor Energy Inc. (USA) (SU), Cuts Marathon Petroleum Corp (MPC) & Phillips 66 (PSX)

Verbatim: Why Suncor's former CEO Rick George isn't exactly the retiring type

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