Company Announces Phase II of its Plan of Exploration for Delvina
CALGARY, Dec. 20 /CNW/ - Stream Oil & Gas Ltd. (TSX-V: SKO) (the
"Company") is pleased to announce that it has completed its first
export shipment of crude oil for delivery to Alma Petroli refinery in
Ravena, Italy. The shipment consists of approximately 2,040 metric
tonnes of crude oil (approximately 13,800 barrels) from Stream's
Albanian oil fields. As this was the first shipment of Stream's crude
oil out of Albania no price reference to other crude oil could be used
however the Company received 60% of the Brent price and hopes to
achieve a better percentage on future shipments, based on the higher
API crude oil it actually delivers.
Stream has entered into a contract to supply the refinery with more
shipments, the second of which is planned for the first quarter of
2011. The exports are in accordance with Stream's petroleum agreements
that provide the right to export all of the Company's Albanian
"This export is an important milestone in Stream's growth strategy,"
said Dr. Sotiris Kapotas, President and CEO "Additional cash flow
generated from higher export prices will benefit the Company by
allowing us to advance the development of our assets. We plan to
continue exports shipments in 2011 as production increases through the
successful execution of our field development plans."
Delvina Gas field - Phase II Exploration Program Approved
In the latter half of 2010, the Company submitted Phase II of its Plan
of Exploration ("PoE") for the Delvina gas field to the Albanian
authorities. Phase I of the PoE was completed in 2010 and provided
sub-surface analysis, including a structural interpretation,
stratigraphic and petrophysical analysis as well as a review of the
existing well information as part of the geological and reservoir
model. Phase II is comprised of a combination of activities including
passive seismic tomography and the drilling of a vertical exploration
well in the first quarter of 2013 after further geological assessment
and further calibration with the results of the Plan of Development.
The program is automatically approved, as per Petroleum Agreement, if
Company commits a minimum work program of US$7.0 million for a period
of 36 months. Stream has the option of drilling a second exploration
well if required. This program is aimed at testing the sister
structures that SKO has identified in the phase I exploration program.
Dr. Sotiris Kapotas continued "The Delvina gas field represents strong
upside potential for Stream. Albania is short of natural gas resources,
resulting in high demand and we believe that the additional sister
structures in Delvina will be able to provide the resources to meet
this need. "
Delvina is the largest gas field in south east Europe and the only
producing gas field in Albania. The field is currently producing
approximately 700 gross mcf/d and 47 bbl/mmcf of natural gas liquids
from two existing wells. Successful recompletion of the existing
producing wells is expected to increase production to approximately
2,000 mcf/d. Production from the Delvina gas field has the capacity to
support thermal power generation for Albania or the Company's EOR
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
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
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.
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