Achieves Increases in Production, Revenues and Net Operating Income
CALGARY, May 29, 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 February 29, 2012.
Q1 2012 Summary of Results
|Three Months Ended|
|(US$000s, except as noted)|| February 29,
| February 28,
|Net operating income (loss)||3,426||1,242|
|Funds from (used in) operations||(2,276)||112|
|Net income (loss)||2,305||(46)|
|Per share - basic||0.03||(0.00)|
|Per share - diluted||0.03||(0.00)|
|Additions to property, plant & equipment||8,255||5,008|
|Average production (boed)||860||497|
|Average price ($/boed)||65.03||40.68|
|As at||Feb. 29, 2012||Feb. 28, 2011|
|Weighted average shares outstanding (#)|
First Quarter Highlights:
- Increased average net production by 73% to 860 net boed compared to 497 net boed in the first quarter 2011, despite the impact of facility capacity constraints
- Realized average net crude price of $65.03 per barrel, a 60% increase over $40.68 per barrel in 2011, due to higher negotiated crude prices and securing a long-term export sales agreement
- Increased revenue by 133% to $4.8 million for the first quarter of 2012 compared to $2.1 million for the corresponding period in 2011
- Net income increased to $2.3 million from a deficit $0.5 million in 2011
- Executed the $20 million facility with Raiffeisen Bank Albania and cleared all conditions precedent at the end of December 2011
- Completed the Delvina 12 gas well fracture and began well clean up and testing in early January 2012
- Received government confirmation of Company's takeover of the oil and gas inter-field pipelines, enabling further development and future deployment of enhanced oil recovery ("EOR") programs
- Continued detailed planning for the takeover of the Ballsh-Hekal field
- Acquired a gas reinjection compressor for the Delvina gas/condensate field to allow near future gas and liquid/condensate production
Activities Subsequent to the First Quarter:
- Completed and reported the 2012 interim reserve evaluation, resulting in significant reserve and resource growth compared to the 2011 reserve evaluation due to development activities in winter 2011/2012.
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 will concentrate 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.
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.
Stream has filed its audited Consolidated Financial Statements for the three months ended February 29, 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.
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 first 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.
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.
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.
For further information:
Dr. Sotirios Kapotas President & Chief Executive Officer
P: (403) 531-2358
James Hodgson, Chief Financial Officer
P: (403) 531-2358