Stream Oil & Gas Provides Q4 2010 Operational Update
Daily Production Increases 270% from 2009 & Company Takes-Over Gorisht Oilfield
CALGARY, January 17, 2010 - Stream Oil & Gas Ltd. (TSX-V: SKO) (the "Company") is pleased to provide the following update and summary of operational results for the year ended December 31, 2010. The Company achieved a peak gross daily production of 2,192 boed, up from 587 boed in 2009 (a 270% increase), and the fourth quarter gross average field production was 1,828 boed. The peak net daily production to Stream was 1,136 boed and the average net daily production for the quarter increased by 202% to 922 boed, up from 305 boed last year. Production royalties are forecast to continue decreasing as new production is added through Stream’s on-going execution of its development plans. These figures include the Company's typical gas production of 690 mcf/d and 47 bbl/mmcf of natural gas liquids.
Effective December 31, 2010, Stream finalized the takeover of the Gorisht-Kocul oilfield, including all wells, surface infrastructure, treatment facilities and the pipeline connecting this oilfield with the Company’s Usoja treatment facilities next to Ballsh and Cakran oilfields. This provides the infrastructure required for future Gorisht-Kocul water and gas flooding programs. Stream commenced the deployment of the first phase of the field pilot water flood program, including the additional geosciences work which will also be utilized for enhanced oil recovery (“EOR”) planning.
“The take-over of the Gorisht-Kocul oilfield represents an important step in our growth plans,” said Dr. Sotiris Kapotas, President and CEO. “We estimate that Gorisht has approximately 350 MMbbl of remaining original-oil-in-place. Implementation of the field waterflood project in 2011 will help us access the potential of these reserves, increasing production and asset value in the future.”
Following the take-over of the Cakran-Mollaj oilfield in the second quarter of 2010, Stream continued to optimize production equipment in the oilfield. Targeted deployment of conventional, progressive and jet pump technologies demonstrated beneficial results in this reservoir. Surface facility rehabilitation as well as integrated services deployment on deep well recompletions has proven to be a very effective use of the Company’s capital. In addition, geoscience work commenced during 2010 in support of future EOR development.
Stream continued to operate its wells in the Ballsh-Hekal field, preparing for the staged takeover of the remaining wells as part of the Company’s 2011 plans. Engineering integration also commenced for existing facilities to optimize utilization of injection fluids, reducing future EOR implementation costs of the three oilfields.
Delvina field operations continued in support of gas requirements by ARMO and Albpetrol. Stream continued the procurement of goods and services in preparation of its 2011 workover and drilling programs in Delvina. To counter the interruptions in Albania’s current gas market demand, Stream advanced its gas utilization program by initiating the first phase of power generation, which is forecast to be in service this year. In view of the favourable seismic interpretation results on the adjacent acreage (already within Stream’s petroleum agreement), Stream commenced the second phase of the Delvina block exploration program.
Diversifying its customer base, Stream exported its first cargo of crude oil to an Italian refinery via Petrolifera port facilities at Vlora late in the fourth quarter. This achievement demonstrates the Company’s capability to manage complex logistics, reduce local market dependence and achieve incremental sales price.
Certain information regarding the Company contained herein constitutes forward-looking information and statements and financial outlooks (collectively, “forward-looking statements”) under the meaning of applicable securities laws, including Canadian Securities Administrators’ National Instrument 51-102 Continuous Disclosure Obligations. Forward-looking statements 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.
About Stream Oil & Gas Ltd.
Stream Oil & Gas Ltd. is a Canadian-based emerging oil and gas production, development and exploration company focused on the re-activation and re-development of three oilfields and a gas/condensate field in Albania. The Company’s strategy is to use proven technology, incremental and enhanced oil recovery techniques to significantly increase production and reserves.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
|Dr. Sotirios Kapotas President & Chief Executive Officer||P: (403) 531-2358|
|James Hodgson, Chief Financial Officer||P: (403) 531-2358|