Stream Oil & Gas Announces Albanian Reserves of over $145.3 million

VANCOUVER, Oct. 21 /CNW/ - Stream Oil & Gas Ltd. (TSX-V: SKO) is pleased to announce the results of its independent reserve evaluation prepared by AJM Petroleum Consultants ("AJM") as at November 30, 2009, in accordance with the provisions of National Instrument 51-101 ('N1 51-101') and the Canadian Oil and Gas Evaluation Handbook ("COGEH").

    
    Reserve Highlights
    ------------------

    -   Before tax net present value of Gross Proved plus Probable reserves
        of $145.3 million (discounted at 10%), not accounting for
        US $30 million value of mineral tax neutralization allowed under
        Stream's Petroleum Agreements;

    -   Gross Proved plus Probable reserves of 17,418 Mboe

    -   Before tax net present value of Gross Proved reserves of
        $87.0 million (discounted at 10%)

    -   Gross Proved oil reserves of 13,364 Mboe
    

"We're pleased with the results of the first 51-101 compliant reserve report, on these assets," said Dr. Sotirios Kapotas, Chief Executive Officer. "These reserves provide us with significant opportunity for growth in production as we implement our plans of development. As we move beyond incremental production techniques to initiate enhanced oil recovery technologies, we expect to see this resource increase and provide further value to our shareholders."

    
    Implementation Planning Update
    ------------------------------
    

Stream has retained the Alberta Research Council (a world recognized leader in techniques and methods for heavy oil development) as a technical specialist in areas of secondary and enhanced recovery. In 2010, Stream plans to focus on refining the contemplated EOR opportunities in addition to implementing primary production improvements through workovers and proficient reservoir management.

Stream is on track to submit the Delvina gas field development plan by year-end as well as implementing the oil development plans upon approval by Albania authorities and confirmation of funding arrangements.

    
    Reserves Report
    ---------------

    AJM prepared a Reserve Estimation and Economic Evaluation ('Reserve
Report') dated October 15, 2009, with an effective date of November 30, 2009.
The Reserve Report is based on conventional reservoir production methods and
the presented version does not include the following:

    a)  Stream's Petroleum Agreements' provisions for neutralizing the
        recently legislated 10% mineral tax of nearly US$30 million (before
        tax);

    b)  Gorisht oil field water flood potential;

    c)  Ballsh & Cakran oil fields infill drilling or EOR potential;

    d)  Delvina gas field horizontal wells development potential.
    

Under N1 51-101 and COGEH, Proved reserve assignments are based on a 90 percent probability that total quantities actually recovered will equal or exceed Proved reserve estimates. Proved plus Probable reserves are the most likely case and based on a 50 percent probability that the quantities actually recovered will equal or exceed the sum of Proved plus Probable reserves estimates. The Company is not aware of any information pending from the date of this release to the effective date that would materially affect the valuation results. Stream's Reserve Committee and Board of Directors have approved the Reserve Report. Summary information is presented below from the Reserve Report:

    
    Net Present Value of Reserves (Before Tax) as at November 30, 2009

    ($USD thousands)     Undiscounted        PV 5%       PV 10%       PV 15%

      Proved Producing        136,198       82,212       53,758       37,480

      Proved non Producing          0            0            0            0

      Proved Undeveloped      102,992       58,120       33,287       18,770

    Total Proved              239,190      140,332       87,044       56,250

    Total Probable            174,667       94,705       58,266       39,579

    Total Proved & Probable   413,857      235,037      145,312       95,829



    Net Present Value of Reserves (After Tax) as at November 30, 2009

    ($USD thousands)     Undiscounted        PV 5%       PV 10%       PV 15%

      Proved Producing         70,520       45,247       31,092       22,640

      Proved non Producing          0            0            0            0

      Proved Undeveloped       51,688       28,254       14,965        7,029

    Total Proved              122,208       73,501       46,057       29,670

    Total Probable             89,035       48,915       30,817       21,603

    Total Proved & Probable   211,244      122,416       76,874       51,273

    The estimated values disclosed do not represent fair market value.



    Reserves Summary as at November 30, 2009

                    Oil         Natural Gas         NGLs           Total
               Gross     Net   Gross     Net   Gross     Net   Gross    Net
                Mbbl    Mbbl    mmcf    mmcf    Mbbl    Mbbl    Mboe    Mboe

      Proved   8,861   5,619     451     245      19       9   8,955   5,669
      Producing

      Proved       0       0       0       0       0       0       0       0
      Non
      Producing

      Proved   4,503   4,411   1,878   1,607      79      65   4,895   4,744
      Undeveloped

    Total
    Proved    13,364  10,030   2,329   1,853      97      74  13,849  10,413

    Total
    Probable   3,304   3,275     823     733     128     123   3,569   3,520

    Total
    Proved &
    Probable  16,667  13,305   3,152   2,586     225     197  17,418  13,933

    Gross reserves are the total of the Company's working interest share
before deduction of royalties and other government share. Net reserves are
gross reserves net of royalty interests owned by others.
    The reserve values are based on the table of prices below. Oil prices are
the equivalent price of Brent Oil discounted for quality based on local market
conditions. Gas prices are based on the contract applicable.

    Price Forecast

    -------------------------------------------------------------------------
                   Brent Oil Real       Oil            Gas       Condensate
                     ($USD/bbl)     ($USD/bbl)     ($USD/mcf)    ($USD/bbl)
    -------------------------------------------------------------------------
      2009 1 mo         64.00          38.40          9.70          89.00
        2010            69.00          42.24          9.70          89.00
        2011            74.00          46.20          9.89          90.78
        2012            79.00          50.31         10.09          92.60
        2013            84.00          54.34         10.29          94.46
        2014            97.00          58.93         10.50          96.34
        2015            94.00          63.51         10.71          98.26
        2016            99.00          68.22         10.92         100.23
        2017            99.00          69.60         11.14         102.23
        2018            99.00          70.98         11.37         104.28
      2019+ avg         99.00          82.74         11.59         106.36
    

Stream's year-end date is November 30, 2009. The Company expects to file its 2009 NI 51-101 reserves disclosure forms: Form 51-101F1 - Statement of Reserves Data and Other Oil and Gas Information, Form 51-101F2 - Report of Independent Qualified Reserves Evaluator, and Form 51-101F3 - Report of Management and Directors on Oil and Gas Disclosure on or before its 2009 filing deadline of March 30, 2010. At which time these filings can be accessed electronically on Stream's website or on the SEDAR website at www.sedar.com.

Advisories

Forward-Looking Statements

Certain information regarding the Company contained herein constitutes forward-looking information and statements and financial outlooks (collectively, "forward-looking statements") under the meaning of applicable securities laws, including Canadian Securities Administrators' National Instrument 51-102 Continuous Disclosure Obligations. Forward-looking statements relate to future events or future performance and reflect management's current expectations and assumptions. Such forward-looking statements reflect management's current beliefs and are based on assumptions made by and information currently available to the Company.

The forward-looking statements contained herein are made as of the date of this News Release solely for the purpose of generally disclosing Stream's reserves volumes and net present value of its reserves as at November 30, 2009. 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. 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. The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement.

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 oil fields and a gas/condensate field in Albania. The Company's strategy is to use new technology and enhanced oil recovery techniques to significantly increase production of these under-developed reservoirs.

Under separate 25-year Petroleum Agreements, (with five-year extension options) Stream has the rights to take-over the operations of all wells in the Gorischt-Kocul, Ballsh-Hekaj, and Cakran-Mollaj oil fields as well as the Delvina gas field, and produce the remaining reserves. Takeover of the wells is being completed in stages.

    
    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.
    

%SEDAR: 00022735E

SOURCE Stream Oil & Gas Ltd.

For further information: For further information: Dr. Sotirios Kapotas, Chief Executive Officer, P: (604) 642-6168, Email info@streamoilandgas.com; Angela Huxham, Chief Financial Officer, P: (604) 642-6168, Email: ahuxham@streamoilandgas.com; Website: www.streamoilandgas.com

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Stream Oil & Gas Ltd.

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