Zawran, he's probably used Glscale to flip the y axis to render the reflection, it's a fast and very common way of rendering reflections in OpenglRender the inverted scene, flip the Y axis, enable glblend, draw the floor, disable glblend and then render the other half of the scene.
Blitz3d uses directx but it probably does it the same way.
Stencil buffers are more useful for things like shadows and that kind of stuff.