Stream Announces First Quarter 2014 Results
CALGARY, April 29, 2014 /CNW/ - Stream Oil & Gas Ltd. (TSX-V: SKO) (the "Company") is pleased to report its financial and operating results for the three months ended February 28, 2014.
|Q1 2014 Summary of Results|
|(US$000s, except as noted)||2014||2013|
|Revenue, net of mineral tax royalty||6,780||8,195|
|Net operating income||2,045||3,178|
|Funds from operations||7,054||6,017|
|Net income (loss)||1,777||(255)|
|Per share - basic & diluted||0.03||0.00|
Cash additions to property & equipment
and exploration & evaluation assets
|Average production (boed)|
|Net production (Stream's share)||999||1,148|
|Gross average price ($/boed)||66.17||68.26|
|As at||Feb. 28, 2014||Nov. 30, 2013|
|Cash and cash equivalents||766||1,962|
|Weighted average shares outstanding - basic (#)||66,686,431||66,686,431|
In the first quarter of 2014, Stream focused on natural gas development at Delvina while working to stabilize and grow production in the oilfields. The first horizontal well (D34H1) was spud in the Delvina gas field subsequent to the quarter.
First Quarter Highlights:
Net average production decreased to 999 boed compared to 1,148 boed in
Gross revenue decreased by 17% to $7.5 million compared to $9.1 million
for the first quarter of 2013 (net $6.8 million in 2014 compared to
Net operating income decreased by 36% to $2.0 million from $3.2 million.
The Company realized net income of $1.8 million compared to a net loss
of $0.3 million in 2013 due to slightly lower overall expenses, higher
foreign exchange gains and reductions in deferred income tax expense
- The rig, ancillary services and goods for drilling the D34H1 gas well arrived at Delvina.
Subsequent to the Quarter
The D34H1 well was spud in the Delvina gas field during April 2014.
The Company arranged a bridge loan of Cdn$5.0 million.
Received confirmation for takeover of the Ballsh-Hekal oilfield; Stream
commenced procedures for the transfer of remaining assets.
Ian Baron resigned as a Director of the Board of Directors effective
April 11, 2014.
- Restructured obligations with key vendors, allowing deferred payment terms.
In 2014, Stream's Management is focused on re-engaging in production growth at its oilfields and adding new production through its gas field activities. Stream's plans for 2014 include the following activities:
Cakran-Mollaj: Repair jet pump systems and install procured hydraulic long lift RRP
systems; pilot ASP to reduce water production while commencing
alternate water disposal, thus eliminating infield re-injection.
Combined, these are expected to return the field to prior demonstrated
Gorisht-Kocul: Continue waterflood expansion along with recompletions with PCPs and
hydraulic RRP lift systems;
Ballsh-Hekal: Takeover the remainder of the field, re-validate primary targets and
recomplete with PCPs;
Delvina: Finalize drilling, completion and testing of the horizontal well,
effectively bringing on sustained production and delivering increased
volumes to the third-party's thermo project. Subsequently, commence
drilling of the exploration well in step out structures;
Complete evaluation and early preparations for the drilling of infill
wells in the oilfields, leveraging the deviated/horizontal drilling
approach to access more of the reservoir; and
- Increase storage facilities to enable larger export cargos with the intent of increasing sales price.
2013 Reserves Revision
Stream announces revisions to its November 30, 2013, independent reserves evaluation as filed on SEDAR on March 31, 2014. Errors in the original reserve report due to an incorrect oil price forecast as reported by Deloitte LLP, Stream's reserve evaluator, affected the Company's Net Present Values as shown in the table below.
|Revised 2013||2013||% Change|
|Before Tax||Discount Rate||Discount Rate|
|December 31 (US$000s)||0%||0%||0%||10%||0%||10%|
|Total Proved + Probable||$||1,487,717||$||546,003||$||1,407,940||$||515,863||6%||6%|
|Total Proved + Probable + Possible||$||2,171,669||$||820,106||$||2,089,695||$||789,718||4%||4%|
(1) Forecast prices and costs; before income taxes; numbers may not add due to rounding.
|Revised 2013||2013||% Change|
|After Tax||Discount Rate||Discount Rate|
|December 31 (US$000s)||0%||10%||0%||10%||0%||10%|
|Total Proved + Probable||$||767,450||$||293,914||$||727,168||$||278,866||6%||6%|
|Total Proved + Probable + Possible||$||1,104,370||$||426,286||$||1,062,944||$||411,114||-||-|
(1) Forecast prices and costs; after income taxes; numbers may not add due to rounding.
Stream's reserve data is subject to and should be read in conjunction with the entire Form 51-101F1 - Statement of Reserves Data and Other Oil and Gas Information. The Form 51-101F1, Form 51-101F2 - Report of Independent Qualified Reserves Evaluator and Form 51-101F3 - Report of Management and Directors on Oil and Gas Disclosure have been filed with Canadian securities regulators and can be accessed electronically on Stream's website or on the SEDAR website at www.sedar.com.
Stream has filed its Consolidated Financial Statements for the three months ended February 28, 2014, and its related Management's Discussion and Analysis with Canadian securities regulatory authorities. Copies of these documents may be obtained via www.sedar.com or the Company's website, www.streamoilandgas.com.
Information in this news release respecting matters such as plans of development or 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.
The forward-looking statements contained herein are made as of the date of this release solely for the purpose of generally disclosing Stream's 2014 first quarter results, outlook for 2014 and net present value of its reserves. 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. 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 general risks inherent in oil and gas operations.
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. 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.
Use of Boe Equivalents
The oil and gas industry commonly expresses production and reserve volumes on a barrel of oil equivalent (Boe) basis whereby natural gas volumes are converted at the ratio of six thousand cubic feet of natural gas to one barrel of oil. Boe may be misleading particularly if used in isolation. A Boe conversion ratio of 6 Mcf: 1 Bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
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.
SOURCE Stream Oil & Gas Ltd.For further information:
Dr. Sotirios Kapotas President & Chief Executive Officer P: (403) 531-2358
Susan J. Soprovich, Interim Corporate Secretary P: (403) 874-2903