News
Stream Oil & Gas Ltd. Update and First Quarterly Results
April 29, 2008
Stream Oil & Gas Ltd. (the “Company”), formerly L.G.R. Resources Ltd., has filed with the Canadian securities commissions, its first quarter financial statements and management’s discussion & analysis (MD&A). These statements include: pre-consolidated financial and operational information for the period ending February 29, 2008 for both the former L.G.R. Resources Ltd. and the Company’s now wholly owned subsidiary Stream Oil & Gas (CI) Ltd.
TSX-Venture Exchange Conditional Approval
The TSX Venture Exchange has conditionally approved the listing of Stream Oil & Gas Ltd. as a Tier 2 Oil & Gas Issuer, subject to the filing with, and acceptance by, the Exchange of final listing documentation, including a Listing Application Form and a Sponsor Report.
Summary of Albania Operations
The Company is currently conducting an evaluation work program to identify product optimization opportunities and obtain further data for a NI 51-101 reserve valuation. As of February 29, 2008, no proven reserves or value can be attributed to the Company’s properties according to NI 51-101 requirements.
Stream Oil & Gas has taken over 23 producing wells since beginning operations in November 2007. A well rehabilitation program is ongoing with a scope to understand well behavior and define appropriate methods to enhance and increase crude oil production. The Company’s agreement with Albpetrol Sh.A (“Albpetrol”) provides the Company with revenue from 100% of increased production from a declining baseline level, plus 30% of baseline production.
The Company is currently conducting an evaluation work program to identify product optimization opportunities and obtain further data for a NI 51-101 reserve valuation. Stream Oil & Gas has taken over 23 producing wells since beginning operations in November 2007. A well rehabilitation program is ongoing with a scope to understand well behavior and define appropriate methods to enhance and increase crude oil production. The Company’s agreement with Albpetrol Sh.A (“Albpetrol”) provides the Company with revenue from 100% of increased production from a declining baseline level, plus 30% of baseline production.
A 3D passive seismic program is running over the Delvina gas field in order to map the existing production area and define upside potential. Preliminary results are encouraging and indicate more than sufficient micro-seismic event presence during the first 3 months of operations. This will allow us to construct a subsurface model earlier than previously expected, around mid 2008.
Stream Oil & Gas’s revenues for its first four months of operations, beginning November 2007 were US $452,947. The average domestic price per barrel over this period was US $29, a price dictated by the local Ministry. Stream Oil & Gas has negotiated a price of US $35.00 effective January 1, 2008.
|
Current Production |
Average daily |
Average domestic |
|
Crude Oil |
120 bopd |
$29/b |
|
Gas |
275 Mcf/d |
$12 Mcf |
| Condensate |
11 bpd |
$80/b |
The Company’s objective is to grow production by using enhanced recovery techniques for carbonate reservoirs such as the radial jet developed in Alberta for the foothills projects. The Company is preparing to develop the Delvina gas field with infill drilling and plans to use the gas for power generation.
Management is discussing a number of local alliances to maximize value.
Over the previous four months Stream Oil & Gas has spent $543,478 developing the Albanian properties.
Operating, sales and transportations costs were $192,645 and administrative expenses totaled $548,939, resulting in a total operating loss for the period of $298,565.
As at February 29, 2008, the balance of Stream Oil & Gas’s cash committed to property development under its agreements with Albpetrol was US $ 3,489,688
On a consolidated basis, the Company’s current working capital is about $2.2 million.
The Company has plans to continue well take over and rehabilitation work in order to optimize production for the remainder of 2008. For the 2nd and 3rd Quarters of 2008 another 50 producing and non producing wells are planned to be added to the portfolio of the Company. Rehabilitation work, in addition to basic work over which is currently underway, will include pump replacement and radial jet method testing. Based on the number of wells the planned budget for the remainder of the year is US $15 to $20 million. The Company intends to raise the additional financing required through a private placement following the initial rehabilitation results.
The Company plans to complete a full review in accordance with NI 51-101standards by the end of 2008, to update and determine the corresponding recoverable reserves.
About Stream Oil & Gas
Stream, the Company’s wholly owned Cayman Islands subsidiary, is engaged in oil and gas exploration, development and production. Stream was founded to acquire interests in petroleum producing fields in the Republic of Albania (“Albania”) and elsewhere. On August 8, 2007, Albpetrol, the Albanian state exploration and production company, transferred to Stream four license agreements (“License Agreements”) with Albania’s National Petroleum Agency (“AKBN”). These License Agreements gave Stream access to three fully developed onshore oil fields and one partially developed onshore gas field. At the time, each field was operated by Albpetrol. On August 8, 2007, Stream also entered into four petroleum agreements (“Petroleum Agreements”) with Albpetrol which, together with the License Agreements, govern Stream’s rights in respect of the three oil fields and the gas field.Further information on Stream and its oil and gas properties is included in the Company’s Information Circular dated February 12, 2008 available at www.sedar.com.
Contact Information
Sotirios Kapotas is the person responsible for this news release and can be contacted at the Company’s head office above, or by email info@streamoilandgas.com.
Sotirios Kapotas is the person responsible for this news release and can be contacted at the Company’s head office above, or by email .
The Company’s acting CFO, Angela Huxham, can be contacted at 604-723-3152 or by email ahuxham@streamoilandgas.com.
The Canadian trading and Quotation System Inc. (“CNQ”) has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking statements, which relate to future events or future performance and reflect management’s current expectations and assumptions. Such forward-looking statements reflect management’s current beliefs and are based on assumptions made by and information currently available to the Company. Investors are cautioned that these forward-looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances except as required under applicable securities legislation.
