Stream Oil & Gas Ltd. - Operations Update and Second Quarter Results

    TSX-V: SKO

    VANCOUVER, Aug. 5 /CNW/ - Stream Oil & Gas Ltd. ("Stream" or the
"Company") is pleased to provide the following update on its rehabilitation
and development projects in Albania:

    Rehabilitation work

    The Company has received its first PCP (Progressive Cavity Pumps) and has
initiated work-overs of selective wells by installing these pumps and applying
perforations and acidizing. The results of these rehabilitation tests will be
announced once testing and production control have been completed.

    Radial jetting tests

    Radial jetting tests in selective wells are planned to begin mid-August.
The Company has agreements with Well Enhancement Services LLC. USA and Coil
Services Netherlands to execute this work.

    Gas Plant Scoping Study

    Poyry Energy (Italy) provided a proposal dated June 30, 2008 and Stream
has now engaged them to provide a scoping study for a gas fired powered plant
on the Delvina gas field


    Management is currently finalizing agreements with various field service
companies and is discussing alliances with other Albanian operators to
maximize value.

    Albanian fiscal changes

    The Ministry of Economy, Trade and Energy of Albania has informed the
Company that an amendment to the National Tax Law has been made to establish a
minimum 10% Royalty Tax to all contractors on the gross revenue of petroleum
produced. Stream's Petroleum Agreements with the Albanian Government provide
for amendments to eliminate any negative economic effects on Stream. The
Ministry of Trade Economy and Energy, Albpetrol S.A. and the National Agency
for Natural resources has undertaken to consult with the Company, and will
take incentive actions and make necessary amendments to the current Agreements
in order to eliminate any economic impact to Stream resulting from the 10%
Royalty Tax.

    Financial Results for the seven month period ended May 31, 2008

    The Company has filed with the Canadian securities commissions, its
unaudited, consolidated second quarter financial statements and management's
discussion & analysis (MD&A). These filings are available on SEDAR and the Company's website:

                                                       3 month       7 month
    Oil & gas revenue                                 $584,247    $1,037,194
    Operating expenses                                $226,921      $369,852
    Sales and transportation                           $78,296      $128,010
    Net operating income                              $279,030      $539,332
    G&A                                               $603,669    $1,152,608
    Net loss                                         ($273,940)    ($541,220)
    Net loss per share                                  ($0.01)       ($0.01)
    Capital Expenditures:
    Seismic                                           $272,485      $773,216
    Work-overs                                        $818,425      $861,172

    Average daily production is currently 126 bopd, 356 mcf/d gas and 11 bopd
condensate. The company is now receiving about $38.00/bbl for oil, $17.00/mcf
for gas and $82.00/bbl for condensate.

    Working Capital

    The Company had working capital of $1.3 million at the end of May and an
additional cash balance of $2.8 million, restricted for operating and capital
expenditures on its Albanian properties under Agreements with Albania's
National Petroleum Agency (AKBN).

    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 (AKBN). 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 and on the Company's website:

    Neither the TSX Venture Exchange nor the CNQ has 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) 568-6743 or by email

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