Seismic Program Agreement Finalized with Implementation to Commence in May 2011
CALGARY, April 14 /CNW/ - Stream Oil & Gas Ltd. (TSXV: SKO) (the "Company") is pleased to report the advancement of its Delvina Block gas exploration program Phase II with the award of the seismic tomography contract. This second phase of the seismic program is target oriented, focused on improving the definition of the three structures in preparation for drilling of the exploration wells. The additional seismic data will be integral to the successful execution of the Company's Plan of Exploration ("PoE") on the Delvina Block, accessing over 600 BCF of gas resources.
The field segment of the program will commence in May 2011, providing monitoring of the north, south and east structures adjacent to the existing producing Delvina field. The resulting information will be utilized to determine the location of the planned exploration well.
"Our exploration program at Delvina is moving forward as planned," said Dr. Sotirios Kapotas, President and CEO. "The Delvina gas field and Block offer significant growth potential for the Company, and is expected to provide new opportunities in a scarce gas environment. The production potential can be utilized in various ways to the benefit of Stream adding shareholder value."
Per the November 30, 2010 independent reserves report, the Delvina gas field and block were evaluated to hold approximately 616 BCF of gas initially-in-place (high estimates; AJM Petroleum Consultants). Future activities at Delvina are expected to result in the conversion of possible reserves into probable reserves, while the drilling of the first horizontal well is expected to convert probable into proved reserves and contingent resources into probable reserves. Drilling exploration wells in the adjacent structures is expected to convert prospective resources.
Stream plans to expand its existing gas market and is finalizing gas utilization plans which will support the Delvina development program timelines. A small power generation plant is expected to be installed in 2011 at the Delvina gas field. Plans are being finalized for a large scale power generation plant in support of the Company's full scale field and block development. These activities are expected to provide production for additional markets for power generation, oilfield enhanced oil recovery utilization and other industrial consumers.
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 plans for its Delvina gas assets. 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.
Contingent resources disclosed herein represent those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations, using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. There is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources. Volumes of undiscovered gas initially-in-place are an arithmetic sum of multiple estimates of contingent resources, which statistical principles indicate may be misleading as to volumes that may actually be recovered. Readers should give attention to the estimates of individual classes of contingent resources and appreciate the differing probabilities of recovery associated with each. The probability associated with the High estimate would be considered far less likely than P10, and conversely, the Low estimate would be expected to be much higher than the presented arithmetic sum.
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
For further information: Dr. Sotirios Kapotas, President & Chief Executive Officer, P: (403) 531-2358; James Hodgson, Chief Financial Officer, P: (403) 531-2358; Email email@example.com, Website: www.streamoilandgas.com