Daily Production Increases 270% from 2009 & Company Takes-Over Gorisht Oilfield
CALGARY, Jan. 17 /CNW/ - Stream Oil & Gas Ltd. (TSX-V: SKO) (the "Company") is pleased to provide
the following update and summary of operational results for the year
ended December 31, 2010. The Company achieved a peak gross daily
production of 2,192 boed, up from 587 boed in 2009 (a 270% increase),
and the fourth quarter gross average field production was 1,828 boed.
The peak net daily production to Stream was 1,136 boed and the average
net daily production for the quarter increased by 202% to 922 boed, up
from 305 boed last year. Production royalties are forecast to continue
decreasing as new production is added through Stream's on-going
execution of its development plans. These figures include the Company's
typical gas production of 690 mcf/d and 47 bbl/mmcf of natural gas
Effective December 31, 2010, Stream finalized the takeover of the
Gorisht-Kocul oilfield, including all wells, surface infrastructure,
treatment facilities and the pipeline connecting this oilfield with the
Company's Usoja treatment facilities next to Ballsh and Cakran
oilfields. This provides the infrastructure required for future
Gorisht-Kocul water and gas flooding programs. Stream commenced the
deployment of the first phase of the field pilot water flood program,
including the additional geosciences work which will also be utilized
for enhanced oil recovery ("EOR") planning.
"The take-over of the Gorisht-Kocul oilfield represents an important
step in our growth plans," said Dr. Sotiris Kapotas, President and CEO.
"We estimate that Gorisht has approximately 350 MMbbl of remaining
original-oil-in-place. Implementation of the field waterflood project
in 2011 will help us access the potential of these reserves, increasing
production and asset value in the future."
Following the take-over of the Cakran-Mollaj oilfield in the second
quarter of 2010, Stream continued to optimize production equipment in
the oilfield. Targeted deployment of conventional, progressive and jet
pump technologies demonstrated beneficial results in this reservoir.
Surface facility rehabilitation as well as integrated services
deployment on deep well recompletions has proven to be a very effective
use of the Company's capital. In addition, geoscience work commenced
during 2010 in support of future EOR development.
Stream continued to operate its wells in the Ballsh-Hekal field,
preparing for the staged takeover of the remaining wells as part of the
Company's 2011 plans. Engineering integration also commenced for
existing facilities to optimize utilization of injection fluids,
reducing future EOR implementation costs of the three oilfields.
Delvina field operations continued in support of gas requirements by
ARMO and Albpetrol. Stream continued the procurement of goods and
services in preparation of its 2011 workover and drilling programs in
Delvina. To counter the interruptions in Albania's current gas market
demand, Stream advanced its gas utilization program by initiating the
first phase of power generation, which is forecast to be in service
this year. In view of the favourable seismic interpretation results on
the adjacent acreage (already within Stream's petroleum agreement),
Stream commenced the second phase of the Delvina block exploration
Diversifying its customer base, Stream exported its first cargo of crude
oil to an Italian refinery via Petrolifera port facilities at Vlora
late in the fourth quarter. This achievement demonstrates the Company's
capability to manage complex logistics, reduce local market dependence
and achieve incremental sales price.
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 oilfields 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
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