Stream Receives Approval of Delvina Gas Field Plan of Development
January 23, 2011
CALGARY - Stream Oil & Gas Ltd. (TSX-V: SKO) (the "Company") is pleased to announce that the Ministry of Economy, Trade and Energy of Albania has given its formal approval for the execution of the Plan of Development (“PoD”) for the Delvina gas field. The formal approval was the final ratification of the PoD that was submitted in early 2010. The approval of the PoD allows Stream to enhance production and sell petroleum products under Albpetrol’s existing license for a period of 25 years with an option to extend, at the Company’s election, in five year increments thereafter.
Delvina is one of the largest onshore gas fields in south east Europe and the only major producing gas field in Albania. Current production from the two existing wells in the field is 700 mcf/d of natural gas and 47 bbl/mmcf of natural gas liquids (“NGL”). The two wells to be worked over this year are integral to Delvina’s development program for recompletion, fracturing, seismic monitoring and extended well tests; these will offer additional insights to the geological and reservoir characterization of the Delvina field and similar structures.
In addition, the exploration phases of the block offer significant growth potential for the Company. In October 2010, Stream kicked off Phase II of Delvina block’s Plan of Exploration (“PoE”) previously submitted to the Albanian authorities. Phase I was completed mid 2010; Phase II includes the drilling of a vertical exploration well in the first quarter of 2013 after the completion of further geological assessment and the integration of new data.
Connected to potential markets by existing pipelines, Delvina gas field and block production has the capacity to support significant thermal power generation for Albania or the enhanced oil recovery (“EOR”) projects for the Company and others.
“We’re pleased to receive the final ratification of our plan of development for the Delvina field,” said Dr. Sotiris Kapotas, President and CEO. “Natural gas is in extremely short supply in Albania, and as the largest onshore gas field in south east Europe, it provides Stream with the potential to significantly increase available resources. In addition, an internal source for natural gas will contribute to the economics of our future EOR projects.”
Stream continues the procurement of goods and services in preparation for its 2011 development program in Delvina, which contemplates workovers of the two existing wells and preparation for drilling a horizontal well in the field. In addition, Management is preparing to evaluate NGL potential upside, future horizontal well plans and NGL development.
Information in this news release respecting the Plan of Development, Plan of Exploration, reserves estimates, production estimates and targets, development costs, work programs and budgets constitute forward-looking information (collectively, “forward-looking statements”) under the meaning of applicable securities laws, including Canadian Securities Administrators’ National Instrument 51-102 Continuous Disclosure Obligations. Such forward-looking information is based on certain assumptions, including the availability of funds for capital expenditures necessary to construct the infrastructure required for future development, a favorable political and economic operating environment, a consistent rate of well re-completions and costs, success rates, production performance and build-up periods for well re-completions that are consistent with or an improvement over historical levels. Such forward-looking information reflect management’s current beliefs and are based on assumptions made by and information currently available to the Company, and involves known and unknown risks, uncertainties and other factors which may cause the actual costs and results of the Company and its operations to be materially different from estimated costs or results expressed or implied by such forward-looking statements. Such factors include, among others political and economic risks associated with foreign operations, general risks inherent in petroleum operations, risks associated with equipment procurement and equipment failure, availability of qualified personnel, risks associated with transportation, currency and exchange rate fluctuations and other risks described in the Company's NI 51-101F1 filed on www.sedar.com.
Although the Company has attempted to take into account important factors that could cause actual costs or results to differ materially, there may be other factors that cause costs and timing of the Company's program or results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information.
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