Achieves Increases in Production, Revenues and Net Operating Income
CALGARY, April 29, 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 February 28, 2013.
Q1 2013 Summary of Results
|Three Months Ended|
|February 28,||February 29,|
|(US$000s, except as noted)||2013||2012*|
|Net operating income||4,958||3,426|
|Funds from (used in) operations||6,101||(2,276)|
|Net income (loss) after income taxes||(255)||(67)|
|Per share - basic & diluted||0.00||0.00|
| Additions to property & equipment and
exploration & evaluation assets
|Average production (boed)||1,351||860|
|Average price ($/boed)||68.26||65.03|
|As at||Feb. 28, 2013||Nov. 30, 2012|
|Cash and cash equivalents||547||2,632|
|Weighted average shares outstanding - basic (#)||66,637,801||66,147,801|
|* restated to reflect deferred income tax expense|
First Quarter Highlights:
- Average net production was 1,351 net boed compared to 860 net boed in the first quarter 2012
- Realized average net crude price was $68.26 per barrel, a 5% increase over $65.03 per barrel in the same period of 2012
- Revenue increased by 71% to $8.2 million compared to $4.8 million for the corresponding period in 2012
- Net operating income increased to $5.0 million from $3.4 million in 2012
- Surface facilities rehabilitation continued at the Cakran-Mollaj and Gorisht-Kocul fields with commissioning activities expected throughout the second quarter of 2013
- The Gorisht-Kocul field waterflood commercial pilot projects continued throughout the quarter, inclusive of infrastructure rehabilitation in support of further expansion
- A gas sales contract was executed for the purchase of up to 6.5 MMcf/d natural gas from the Delvina gas field, which will be used for third-party generation of electricity in Albania. Stream related construction for Phase One continued in support of the expected generation equipment start-up within the second quarter
- Preparations continued to restart Delvina gas production for generation feedstock within the second quarter
Subsequent to Quarter-End:
- Stream executed a $20.0 million prepayment agreement for crude oil sales with Trafigura Pte Ltd.
Stream's 2013 work plan incorporates two key elements: a) developing local operating capability; and b) continued production growth. Consistent with its priority to reach sustained, previously demonstrated production levels, Stream deliberately delayed its growth programs into the second half of the year in order to provide a strong operating foundation. In addition, these deferrals allow better capital utilization as the field campaign will benefit from incremental preparations combined with improved staffing experience and levels.
During the second quarter, Stream will focus efforts on improving production operations processes including the recruitment of associated expertise. The training of operating resources combined with incremental foreign staffing efforts is forecast to shortly return Stream's production to its prior demonstrated capacity.
Stream forecasts an aggressive execution of its 2013 work programs to commence mid-year and be completed within 2013 as services and equipment are appropriately staged to allow efficient execution. Management is committed to execute its 2013 growth program, subject to the availability of resources and services. Additional details related to the Company's 2013 program are available in the 'Outlook' section of the first quarter 2013 Management's Discussion and Analysis.
The execution of the Company's growth program, continued development of long-term export contracts and strengthening of 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 month period ended February 28, 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.
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 first 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 [email protected]