Stream Announces Second Quarter 2012 Results

Achieves Increases in Production, Revenue and Net Operating Income

CALGARY, July 30, 2012 /CNW/ - Stream Oil & Gas Ltd. (TSX-V: SKO) (the "Company") is pleased to report its financial and operating results for the three months ended May 31, 2012.

Q2 2012 Summary of Results

  Three Months Ended   Six Months Ended
(US$000s, except as noted) May 31,
2012
  May 31,
2011
  May 31,
2012
  May 31,
2011
Financial              
  Revenue 8,046   4,486   12,892   6,563
  Net operating income 6,573   2,831   9,999   4,073
  Funds from (used in) operations 5,482   949   3,206   1,062
  Net income 5,030   1,271   7,335   1,225
    Per share - basic 0.08   0.02   0.11   0.02
    Per share - diluted 0.08   0.02   0.11   0.02
  Additions to property, plant & equipment 10,842   4,133   19,097   9,141
Operating              
  Average production (boed) 1,141   902   1,001   690
  Average price ($/boed) 71.66   66.84   68.34   57.28
  Netback ($/boed) 57.05   44.08   51.72   35.55
               
As at         May 31, 2012   Nov. 30, 2011
Cash         1,370   500
Shareholders' equity         32,071   24,572
Weighted average shares outstanding (#)              
  Basic         66,373,344   63,948,763
  Fully diluted         67,193,898   64,584,631

Second Quarter Highlights:

  • Increased average net production by 26% to 1,141 net boed compared to 902 net boed in the second quarter 2011.

  • Realized average net crude price of $71.66 per barrel, a 7% increase over $66.84 per barrel in 2011, due to higher negotiated crude prices and securing a long-term export sales agreement.

  • Increased revenue by 78% to $8.0 million for the second quarter of 2012 compared to $4.5 million for the corresponding period in 2011.

  • Net operating income increased to $6.6 million from $2.8 million during the corresponding period in 2011.

  • Attained positive production flow rates from the Delvina 12 workover, producing over 100 MMcf in 45 days (average 2.2 MMcf/d) without decline in productivity.

  • Completed the installation of nine jet pump units at the Cakran-Mollaj oilfield, increasing production from each well to approximately 100 bbls/d.

  • Successfully completed the gas re-injection compressor testing for the Delvina gas/condensate field subsequent to the quarter to allow near future gas and liquid/condensate production.

Outlook

Stream's growth strategy is focused on increasing production, reserves, sales and cash flow through the effective development of its Albanian assets. At the same time, the Company is concentrating on developing incremental reserve value opportunities from tertiary development through EOR in the oilfields and exploration of the sister structures adjacent to its producing Delvina field.

Stream's 2012 work plan incorporates three key elements: a) continued production growth; b) continued reserves growth; and c) internal corporate and organizational development to match the Company's growth.  Management is committed to execute its 2012 growth program, subject to the availability of resources and services.   During the second half of 2012, Stream plans to install up to six additional jet pumps at Cakran-Mollaj, continue workovers and waterflood activities at Gorisht-Kocul and prepare for the takeover of the Ballsh-Hekal oilfield. At Delvina, the Company intends to commence upgrades of the gas pipeline and prepare for drilling of the first horizontal well.

The execution of the Company's growth program, negotiation of longer term export contracts and strengthening of its financial resources is expected to result in additional value to Stream and its shareholders.

Additional Information

Stream has filed its Condensed Consolidated Interim Financial Statements for the three months period ended May 31, 2012, related Management's Discussion and Analysis and its Annual Information Form with Canadian securities regulatory authorities. Copies of these documents may be obtained via www.sedar.com or the Company's website, www.streamoilandgas.com.

Forward-Looking Statements

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 2012 second quarter results and outlook for 2012. 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:

Contact Information
Dr. Sotirios Kapotas President & Chief Executive Officer   P: (403) 531-2358
James Hodgson, Chief Financial Officer   P: (403) 531-2358
Email info@streamoilandgas.com
Website: www.streamoilandgas.com

Profil de l'entreprise

Stream Oil & Gas Ltd.

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