Stream Oil & Gas Ltd. Operational Update

    TSX-V: SKO

    VANCOUVER, Oct. 30 /CNW/ - Stream Oil & Gas Ltd. (the "Company") is
pleased to provide the following update:

    Crude Oil Pricing

    The Company has amended its Sales Contract with Albpetrol Sh.A and
effective August 1, 2008 the new price received by the Company for its crude
oil sales will be calculated based on the following formula

      Price = 100/1.8 + (Brent Average -100)/3 - 2.5 USD/bbl

    The Company previously received a fixed price for crude. August delivery
price increased by 53%, from USD$37.50/bbl to USD$57.40/bbl. The September
price will reflect international price changes.


    Production during the last quarter and as of September 30, 2008 has
increased by 29% from 126 bopd to 162 bopd. For the period during which the
Refinery is operational gas and condensate production levels remained the same
as the previous quarter at 356 Mcf/d gas and 11 bopd condensate. Net oil
inventory at the end of September was 1429 barrels of crude oil. Increased
crude oil production was mainly due to new reactivations and higher flow rates
obtained by the rehabilitation program initiated mid August and described

    Rehabilitation Work

    The Company is also pleased to report that the first phase of radial
jetting has been completed on 4 selected production wells in the Ballsh-Hekal
and Gorisht-Kocul oilfields. Work started mid August and initial results to
the end of September indicated increased flow rates in all wells. PCP pump
installation in these wells was completed in October. The Company is currently
monitoring production results and will report them once they are stabilized.
In general a two-fold increase in production from those wells is sustained and
upon optimization of the PCP pump flow this can increase even further.
    The Company, based on these results, will plan a development program for
the above oil fields for early 2009. The Company also plans to organize a
second phase radial jetting for the Cakran-Mollaj oil field once the
appropriate rig is mobilized early 2009, subject to the Company's ability to
raise the required funds.

    Micro-fracture monitoring

    The Company has engaged Seismotech Ltd. to deploy micro-fracture
monitoring equipment, initially in the Cakran-Mollaj field and then in the
other two oilfields in order to map preferential fracture zones around the
wells and to direct radial jetting accordingly. This is work is subject to the
Company's ability to mobilize the rig as stated above.

    Q3 Results

    The Company's third quarter financial statements and management's
discussion and analysis for the three-month and ten-month periods ended August
31, 2008, are now available on SEDAR and on the Company's
website Total revenue for the three month
period ended August 31, 2008 was $754,447 ($1,791,641 for the ten-month
period). Net loss for the three-month period was $225,844 ($767,064 for the
ten-month period)

    New Royalty Tax

    The Company, after modelling the impact of the new 10% Royalty Tax on its
financial projections, submitted to the Ministry of Economy, Trade and Energy
of Albania proposed terms to amend the current Agreements. The Company's
Agreements provide for amendments to minimize any economic impact from this
new tax. The Company believes that the proposed terms will be acceptable and
is waiting for a Ministerial response before proceeding with discussions with
Albpetrol to finalize and amend the Agreements appropriately.

    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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