Stream Oil & Gas Ltd. - Operations Update and Q2 Results

    TSX-V: SKO

    VANCOUVER, Aug. 6 /CNW/ - Stream Oil & Gas Ltd. (Stream or the Company)
is pleased to provide the following operations update and summary of financial
results for its second quarter ended May 31, 2009:

    Operations Update

    -   Current average gross crude oil production is 470 bopd, 240 bopd net
        to Stream. Most of this production is sold to a local customer who
        pays in advance. Current average oil price received is about
        $40.00/bbl. Gas production is currently zero since the local
        refinery, Stream's only current gas consumer, has temporarily
        suspended operations due to maintenance and upgrades. Jointly with
        Albpetrol, the Company's gas customer, Stream continues to explore
        mitigation measures for this ongoing outage, while developing
        alternate gas utilization strategies.

    -   Due to the recent Albanian election, the Company has not yet
        finalized a resolution to the outstanding accounts receivable and
        royalty tax amendments to sales contracts with Albpetrol Sh.A and the
        ARMO refinery.

    -   The development plans for the Company's three oil fields are due
        September 9th 2009 and the Company is on track to file these by the

    -   Albpetrol has agreed to Stream's request for an extension of the
        evaluation and exploration phases of the Delvina (gas field)
        Petroleum Agreements to six and twelve months respectively. The
        extensions are subject to AKBN confirmation, expected shortly.

    -   The Company has engaged an independent petroleum engineering firm in
        Calgary to prepare a reserve valuation report in accordance with
        National Instrument 51-101 requirements. The Company expects that the
        report will be completed by the end of 2009.

    -   Stream has met all property expenditure requirements under its
        Petroleum Agreements and has deferred any significant capital
        expenditures pending fund-raising.

    Management Changes

    Under a revised agreement with Exergy Resources Inc., effective June 22,
2009, Wayne Arnold has been appointed Head of Stream's Oil Division. Mr.
Arnold will be responsible for generating the oil fields' development plans,
providing technical guidance to operations and rationalizing improved recovery
strategies. Mr Arnold brings extensive oilfield development and well
intervention/servicing expertise. In accordance with the revised agreement,
the Company granted stock options to Exergy Eams Inc. to purchase up to
490,000 common shares of the Company at $0.24 per share for three years,
subject to an 18 month vesting schedule in accordance with the Company's stock
option plan.
    Effective July 29, 2009, the Consulting Agreement with BA Capital Inc.
has been terminated.

    Q2 2009 Results
                          Period ended May 31, 2009 ($US)
    Financial    Three       Six         Operating         Three       Six
                 months      months                        months      months
    Oil and gas                       Average daily oil
     revenue     766,149   1,575,263   production             231         230
     operating                        Average price per
     income      482,790     767,590   barrel               24.00       29.00
    Net loss    (214,536)   (470,210) Average daily gas
                                       production mcf/day     275         275
     plant and
     equipment   401,743     924,229  Average gas price/mcf    12          12
                                      Average daily
                                       condensate production   13          12
                                      Average price per
                                       barrel condensate    65.00       65.00

    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 The Company's 2008 consolidated annual financial statements and
related annual management discussion & analysis are also available through the
SEDAR Website.

    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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