Stream Announces Second Quarter 2013 Results

Achieves Increase in Revenues as Generator Installation is Completed at Delvina

CALGARY, July 30, 2013 /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, 2013.

Q2 2013 Summary of Results

  Three Months Ended Three Months Ended
  May 31, May 31, May 31, May 31,
(US$000s, except as noted) 2013 2013* 2013 2012*
Financial        
  Revenue 9,244 8,046 17,440 12,892
  Net operating income 6,333 6,573 11,292 9,999
  Funds from (used in) operations 5,027 5,482 11,044 3,206
  Net income (loss) after income taxes 440 1,974 186 1,907
    Per share - basic & diluted 0.01 0.03 0.00 0.03
  Additions to property, plant & equipment 5,130 10,842 11,452 19,097
Operating        
  Average production (boed) 1,148 1,141 1,248 1,001
  Average price ($/boed) 64.29 71.66 66.27 68.34
  Netback ($/boed) 44.59 57.05 46.32 51.72
             
As at     May 31, 2013 May 31, 2012
Cash and cash equivalents     155 1,147
Shareholders' equity     27,343 26,946
Weighted average shares outstanding - basic (#)     66,637,801 66,503,921

* restated to reflect deferred income tax expense

Second Quarter Highlights:

  • Maintained average net production of 1,148 net boed compared to 1,141 net boed in the second quarter 2012.

  • Realized average net crude price of $64.29 per barrel, a 10% decrease over $71.66 per barrel in the same period 2012 due to lower average Brent crude pricing.

  • Increased revenue by 15% to $9.2 million compared to $8.0 million for the corresponding period in 2012, which was mainly due to timing of sales volumes rather than reflecting an actual increase in production or sales price.

  • Net operating income decreased to $6.3 million from $6.6 million in 2012 due to higher operating, sales and transportation costs and lower prices.

Subsequent to Quarter-End:

  • Thermo Energy completed the installation of the first 2.2 MW generator at Stream's Delvina 4 wellsite and is connecting it to the local power grid.  Facilities are being commissioned with gas / condensate sales expected late August.

Outlook

Stream is focusing oilfield efforts on rehabilitation of infrastructure during the third quarter while committing to and expediting required equipment for late fourth quarter utilization.  Also during the third quarter, the Company will continue commitments for the horizontal well equipment purchases and services at Delvina.  Results from the gravity and magnetotelluric surveys will be jointly interpreted with the 3D passive seismic results in order to finalize the location of the exploration well.

In the fourth quarter, Stream is planning to install four hydraulic pumps in Cakran-Mollaj and four hydraulic pumps in Gorisht-Kocul.  The Delvina horizontal gas development well (D34H) will be spudded and preparations advanced for the exploration gas well in the Delvina block.

Stream expects to exit 2013 with production of approximately 1,950 bbls/d from the oilfields plus 700 mcf/d of gas and 35 bbls/d of condensate from Delvina (approximately 2,150 net boed on a combined basis).

Additional Information

Stream has filed its Consolidated Financial Statements for the three month period ended May 31, 2013, 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.

_______________

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 2013 second quarter results and outlook for 2013. 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
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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