By Porter Stansberry in the S&A Digest:

Iraq has about 115 billion barrels of proven reserves, second only to Saudi Arabia's 267 billion-barrel reserves.

But Iraq's proven reserves were assessed using decades-old technology, as Iraq's oil fields have been closed to Western oil companies since the 1970s. Even so, according to Oil and Gas Journal, Iraq has 410 billion barrels of oil resources, again, second only to Saudi Arabia's 471 billion barrels. It's certainly possible more oil will eventually be discovered and produced in Iraq than in Saudi Arabia. In fact, only 15 of Iraq's 80 known large fields have been developed. Only 2,000 wells have ever been drilled in Iraq. (More than 55,000 wells were drilled in the U.S. last year alone.)

Says our staff geologist, Matt Badiali: "Iraq contains the largest concentration of giant and super-giant oil fields in the world (greater than 1 billion and 5 billion barrels of recoverable oil, respectively). We know of nine super-giant fields there and 22 giants."

Addax now owns a 45% stake in the potentially enormous Taq Taq field, which lies a couple hundred miles northeast of Baghdad in Kurdistan. Addax geologists believe Taq Taq contains nearly 3 billion barrels of oil, of which nearly 40% is recoverable. At current world prices, that's roughly $85 billion worth of oil, $37.8 billion of which belongs to Addax. And then there's the nature of the field: very shallow. In fact, oil seeps out of the ground here. Production costs would average $2 per barrel.

The only thing Addax needs is a pipeline to move the oil... That's currently under construction and should be running by next year. But the market capitalization of Addax (which trades in London and Toronto) is still only about $6 billion…

There aren't many times in your life you have the opportunity to buy into the next Saudi Arabia. I'm NOT talking about oil sands here, either. This is high-quality crude oil, with extremely low production costs. The development of the Iraqi oil fields will be the biggest story in the oil business for at least the next decade and probably for the next 30 or 40 years.

Please, if you ignore all of our other advice, don't miss this opportunity. Get to know the stocks exploring the area. We've already published a little bit of information about five or six of them in our S&A Oil Report.

Crux note: Later this month, the microcap and biotech advisory service, Phase 1, will cover the two best stocks in Iraq. These are tiny companies that could eventually be worth several billion dollars. This is your best chance for a “twenty-bagger” this year. To receive Phase 1, click here.

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