Stream Oil & Gas Ltd. Additions to Management Team and Operations Update



    TSX-V: SKO

    VANCOUVER, Jan. 22 /CNW/ - Stream Oil & Gas Ltd. (the "Company") is
pleased to provide the following update:

    Additions to the Management Team

    The Company is to strengthen its management team with additional
strategic, technical, engineering and industry expertise for the exploration,
development and production of oil and natural gas in Albania:
    The Company has entered into heads of agreement whereby it will enter
into Consulting Agreements to engage the services of Mike Berezowski, Terry
Horkoff, Richard Enns and Art Agolli to enhance the growth strategy, develop a
five-year growth plan and to provide ongoing technical, business, operational
and advisory services. In conjunction with their engagement, Mr. Agolli will
be appointed to the board of directors of the Company and the Company will
appoint officers of the Company as follows:

    
    Art Agolli         Executive Vice President

    Mike Berezowski    Chief Operating Officer

    Richard Enns       Head of Power and Facilities Division

    Terry Horkoff      Head of Gas Division
    

    Messieurs Agolli, Berezowski, Enns and Horkoff provide considerable
expertise in hydrocarbon projects development, including successful project
delivery in Albania oil fields as well as executive leadership in gas
exploration/development.
    The Company will grant each of the new officers, either directly or
through their respective consulting companies, stock options to purchase up to
700,000 common shares of the Company at an exercise price equal to the closing
price of the Company's shares on the day immediately preceding the date of the
Consulting Agreements. Each stock option will be for a term of two years and
subject to a two year vesting period.
    The new officers will also receive consulting fees, which subject to the
acceptance by the TSX Venture Exchange, will be paid in common shares of the
Company until such time as the Company completes an equity or debt financing
of not less than US $3 million. The Company will pay a portion of consulting
fees in cash to Mr Agolli's company prior to such a financing. The total
amount of consulting fees will be limited to CDN $120,000 per year, per
consultant, based on full-time engagement. The amount of time required is
currently being determined.
    These arrangements are expected to be in place by the end of February
2009.

    Production

    Crude oil production is up to an average of 235 barrels per day. This is
an increase of 42% compared to the previous quarter ended September 30, 2008
and is higher than the 200 bopd previously projected for the end of 2008. The
production increase is mainly the result of rehabilitation work in key wells
during the past six months. Gas and condensate production levels for the final
quarter of 2008, on the 49 days when the refinery operated, remained the same,
at 356 Mcf/d gas and 11 bopd condensate.

    Pricing

    Average pricing during the last quarter of 2008 was $38 per barrel for
crude oil. Gas and condensate prices remained unchanged from the previous
quarter at $618 MNm3 and $90.5 per barrel respectively.

    Operations

    The Company is meeting its commitments under its Petroleum Agreements.
Activities for 2009 will focus on the preparation of the required Development
Plans to be submitted to the Ministry of Economy, Trade and Energy for
approval.
    Initial observations of a large number of acoustic emission events from
micro seismic monitoring in the Cakran-Mollaj confirm the presence of highly
fractured zones in the reservoir production levels. Results from this study
will help in our understanding of the behaviour of the production formation
and will be used to guide our rehabilitation work in this field once the heavy
work over rig is engaged.
    The Company is presently re-negotiating the engagement of a heavy work
over rig and related services in order to implement its program in the
Cakran-Mollaj field, subject to the Company's ability to raise additional
work-over funding.
    Rehabilitation work in the Ballsh-Hekal and Gorisht-Kocul oilfields
continues with PCP pump installations and basic work over when required.

    Reserve Valuation

    Completion of a National Instrument 52-101 compliant reserve valuation
report has been deferred until the second half of 2009. The Company continues
to update its data base from results of the rehabilitation work completed in
the crude oil fields and the passive seismic results in the gas field.

    The Company

    Stream is a Canadian-based emerging oil and gas production, development
and exploration company with assets in Albania focusing on the re-activation
and re-development of three oil fields, and a gas and condensate field, all of
which are in production.
    Stream has entered into Petroleum Agreements with Albpetrol Sh.A. the
Albanian state exploration and production company, and is conducting a staged
evaluation, takeover and redevelopment program under four separate 25-year
license agreements with Albania's National Petroleum Agency. Under these
Agreements, Stream has the rights to take-over the operations of all wells in
the Gorischt-Kocul, Ballsh-Hekaj, and Cakran-Mollaj oil fields, and the
Delvina gas field, and produce the remaining reserves. Takeover of the wells
is being completed in stages.
    Under the Agreements Stream is entitled to 100% of the incremental
production and a share of current baseline production. The operations are
subject to royalties of between 2% and 6% based on an R factor of revenues and
petroleum costs.
    Further information on Stream and its oil and gas properties is included
in the Company's Information Circular dated February 12, 2008 available at
www.sedar.com.

    
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.
    

    This news release contains forward-looking statements, which 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. 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.

    %SEDAR: 00022735E




For further information:

For further information: Sotirios Kapotas is responsible for this news
release and can be contacted at the Company's head office above, or by email
info@streamoilandgas.com; The Company's CFO, Angela Huxham, can be contacted
at (604) 642-6168 or by email ahuxham@streamoilandgas.com

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Stream Oil & Gas Ltd.

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