Stream Oil & Gas Ltd. - Delvina gas field power plant study

    TSX-V: SKO

    VANCOUVER, Oct. 14 /CNW/ - Stream Oil & Gas Ltd. (the "Company"), is
pleased to announce positive results from the Poyry Energy Srl "Delvina Gas
Power Plant Project" scoping study evaluating the installation of a 150MW gas
fired power plant on the Delvina Gas Field in southern Albania.
    Poyry Energy is a global consulting and engineering company and a
worldwide leader in the energy sector. Poyry's core areas of expertise are:
management consulting, hydropower, renewable energy, power & heat, oil & gas.
In addition, Poyry holds a strong position within engineering and project
services for nuclear technology, transmission and distribution as well as
industrial processes.
    The Delvina Power Plant Project includes the conversion into electricity
by a combined cycle plant located in close proximity to the Delvina gas field.
Initially, the size of this plant would to be around 100 MW, with an extension
to 150 MW at a later stage. The gas consumption of a 100 MW power plant at
base load is around 480 MNcm3/d, which is in line with Company's gas
production forecast from the Delvina gas field.
    According to the study, overall investment cost for a 100MW station is
approximately 90 M Euro ($126M USD) and with a life time of 20 years is
economic even under the assumption of current local pricing for gas at around
$15Nmcf which represents three fourths of the operating costs. The results of
this scoping study suggest that an investment a gas fired power plant as
planned the Company in Albania is viable because:

    -   Albania needs to diversify its primary energy supply for electricity
        generation. The country currently depends on hydropower plants with
        varying generation capacity caused by fluctuating precipitation

    -   Albania needs additional domestic power generation capacity due to
        high demand growth

    -   Capacity shortages are likely to result in high electricity prices

    -   There is an attractive investment climate for foreign direct
        investment in the power sector

    Furthermore the study indicates:

        Attractive investment climate in Albania - Many investors in the
        power sector are targeting the country and recent developments show
        that the Albanian government is favoring foreign investment. The
        current state of the generation, transmission and distribution assets
        requires significant investment.

        Electricity Regulator and permitting scheme have been defined - The
        existence of an independent electricity regulating agency and the
        availability of formal permitting procedures are encouraging signs
        for investors in the power sector.

    The Company has initiated the necessary steps in order to obtain the
required permits and has been in contact with several strategic partners in
order to consider its options to proceed to a full feasibility study.

    About Stream Oil & Gas

    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

    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; The Company's CFO, Angela Huxham, can be contacted
at (604) 642-6168 or by email

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