CALGARY, April 14, 2014 /CNW/ - Stream Oil & Gas Ltd. (TSX-V: SKO) ("Stream" or the "Company") announces that the first Delvina horizontal well (D34H1) has been spud in the Delvina gas field in Albania. Stream forecasts well production of approximately 5 MMcf/d for first year before decline begins, at a total cost of approximately $15.0 million. The D34H1 well is expected to start testing in June 2014.
Combined with production from the existing vertical wells, Stream expects 2014 Delvina production of approximately 7 MMcf/d. By 2017, development at Delvina is forecast to deliver approximately 20 MMcf/d of fuel gas with declines of 16% per year thereafter. Prospects from adjoining zones are expected to provide additional future gas supplies at sufficient rates to offset the declines from the D34H1 zone. Neither these prospects, nor the three sister structures previously identified through Stream's geological work, are included in the Company's reserves. As at November 30, 2013, reserves for the Delvina gas field were evaluated as follows:
|Delvina Gas Field Net Reserves - 2013|
|November 30,||Proved||Probable||P+P||Possible||Total P+P+P|
|NPV ($M), 10% Discount||$31,077||$86,336||$117,413||$197,367||$314,780|
The produced residue gas from the D34H1 well will be delivered to the third party power generation facility. At the same time, Thermo Energy is planning to increase its generation potential from the currently installed 2 megawatts (that consumes approximately 600Mcf/d) to align with Stream's future production. Associated condensate production will be sold to the local market in the short-term; as related volumes increase, it will be allocated to higher revenue yielding export sales.
"The drilling of this horizontal well represents a key step in the development of the Delvina field," said Dr. Sotirios Kapotas, President and Chief Executive Officer. "The ability to access its significant gas reserves will provide a much needed gas supply to Albania, and further benefit to Stream."
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 & Gas Ltd.
For further information:
Dr. Sotirios Kapotas President & Chief Executive Officer P: (403) 531-2358
Susan J. Soprovich, Interim Corporate Secretary P: (403) 874-2903