CALGARY, Jan. 23 /CNW/ - Stream Oil & Gas Ltd. (TSX-V: SKO) (the
"Company") is pleased to announce that the Ministry of Economy, Trade
and Energy of Albania has given its formal approval for the execution
of the Plan of Development ("PoD") for the Delvina gas field. The
formal approval was the final ratification of the PoD that was
submitted in early 2010. The approval of the PoD allows Stream to
enhance production and sell petroleum products under Albpetrol's
existing license for a period of 25 years with an option to extend, at
the Company's election, in five year increments thereafter.
Delvina is one of the largest onshore gas fields in south east Europe
and the only major producing gas field in Albania. Current production
from the two existing wells in the field is 700 mcf/d of natural gas
and 47 bbl/mmcf of natural gas liquids ("NGL"). The two wells to be
worked over this year are integral to Delvina's development program for
recompletion, fracturing, seismic monitoring and extended well tests;
these will offer additional insights to the geological and reservoir
characterization of the Delvina field and similar structures.
In addition, the exploration phases of the block offer significant
growth potential for the Company. In October 2010, Stream kicked off
Phase II of Delvina block's Plan of Exploration ("PoE") previously
submitted to the Albanian authorities. Phase I was completed mid 2010;
Phase II includes the drilling of a vertical exploration well in the
first quarter of 2013 after the completion of further geological
assessment and the integration of new data.
Connected to potential markets by existing pipelines, Delvina gas field
and block production has the capacity to support significant thermal
power generation for Albania or the enhanced oil recovery ("EOR")
projects for the Company and others.
"We're pleased to receive the final ratification of our plan of
development for the Delvina field," said Dr. Sotiris Kapotas, President
and CEO. "Natural gas is in extremely short supply in Albania, and as
the largest onshore gas field in south east Europe, it provides Stream
with the potential to significantly increase available resources. In
addition, an internal source for natural gas will contribute to the
economics of our future EOR projects."
Stream continues the procurement of goods and services in preparation
for its 2011 development program in Delvina, which contemplates
workovers of the two existing wells and preparation for drilling a
horizontal well in the field. In addition, Management is preparing to
evaluate NGL potential upside, future horizontal well plans and NGL
Information in this news release respecting the Plan of Development,
Plan of Exploration, reserves estimates, production estimates and
targets, development costs, work programs and budgets constitute
forward-looking information (collectively, "forward-looking
statements") under the meaning of applicable securities laws, including
Canadian Securities Administrators' National Instrument 51-102
Continuous Disclosure Obligations. Such forward-looking information is
based on certain assumptions, including the availability of funds for
capital expenditures necessary to construct the infrastructure required
for future development, a favorable political and economic operating
environment, a consistent rate of well re-completions and costs,
success rates, production performance and build-up periods for well
re-completions that are consistent with or an improvement over
historical levels. Such forward-looking information reflect management's current beliefs and are based on assumptions made
by and information currently available to the Company, and involves
known and unknown risks, uncertainties and other factors which may
cause the actual costs and results of the Company and its operations to
be materially different from estimated costs or results expressed or
implied by such forward-looking statements. Such factors include, among
others political and economic risks associated with foreign operations,
general risks inherent in petroleum operations, risks associated with
equipment procurement and equipment failure, availability of qualified
personnel, risks associated with transportation, currency and exchange
rate fluctuations and other risks described in the Company's NI
51-101F1 filed on www.sedar.com.
Although the Company has attempted to take into account important
factors that could cause actual costs or results to differ materially,
there may be other factors that cause costs and timing of the Company's
program or results not to be as anticipated, estimated or intended.
There can be no assurance that such statements will prove to be
accurate as actual results and future events could differ materially
from those anticipated in such statements. Accordingly, readers should
not place undue reliance on forward-looking information.
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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