Stream Announces Second Quarter 2012 Results
July 27 2012 - 3:19AM
PR Newswire (Canada)
Achieves Increases in Production, Revenue and Net Operating Income
CALGARY, July 30, 2012 /CNW/ - Stream Oil & Gas Ltd. (the
"Company") is pleased to report its financial and operating results
for the three months ended May 31, 2012. Q2 2012 Summary of Results
Three Months Ended Six Months Ended (US$000s, except as May 31, May
31, May 31, May 31, noted) 2012 2011 2012 2011 Financial Revenue
8,046 4,486 12,892 6,563 Net operating 6,573 2,831 9,999 4,073
income Funds from (used 5,482 949 3,206 1,062 in) operations Net
income 5,030 1,271 7,335 1,225 Per share - basic 0.08 0.02 0.11
0.02 Per share - 0.08 0.02 0.11 0.02 diluted Additions to 10,842
4,133 19,097 9,141 property, plant & equipment Operating
Average production 1,141 902 1,001 690 (boed) Average price 71.66
66.84 68.34 57.28 ($/boed) Netback ($/boed) 57.05 44.08 51.72 35.55
As at May 31, 2012 Nov. 30, 2011 Cash 1,370 500 Shareholders'
equity 32,071 24,572 Weighted average shares outstanding (#) Basic
66,373,344 63,948,763 Fully diluted 67,193,898 64,584,631 Second
Quarter Highlights: -- Increased average net production by 26% to
1,141 net boed compared to 902 net boed in the second quarter 2011.
-- Realized average net crude price of $71.66 per barrel, a 7%
increase over $66.84 per barrel in 2011, due to higher negotiated
crude prices and securing a long-term export sales agreement. --
Increased revenue by 78% to $8.0 million for the second quarter of
2012 compared to $4.5 million for the corresponding period in 2011.
-- Net operating income increased to $6.6 million from $2.8 million
during the corresponding period in 2011. -- Attained positive
production flow rates from the Delvina 12 workover, producing over
100 MMcf in 45 days (average 2.2 MMcf/d) without decline in
productivity. -- Completed the installation of nine jet pump units
at the Cakran-Mollaj oilfield, increasing production from each well
to approximately 100 bbls/d. -- Successfully completed the gas
re-injection compressor testing for the Delvina gas/condensate
field subsequent to the quarter to allow near future gas and
liquid/condensate production. Outlook Stream's growth strategy is
focused on increasing production, reserves, sales and cash flow
through the effective development of its Albanian assets. At the
same time, the Company is concentrating on developing incremental
reserve value opportunities from tertiary development through EOR
in the oilfields and exploration of the sister structures adjacent
to its producing Delvina field. Stream's 2012 work plan
incorporates three key elements: a) continued production growth; b)
continued reserves growth; and c) internal corporate and
organizational development to match the Company's growth.
Management is committed to execute its 2012 growth program, subject
to the availability of resources and services. During
the second half of 2012, Stream plans to install up to six
additional jet pumps at Cakran-Mollaj, continue workovers and
waterflood activities at Gorisht-Kocul and prepare for the takeover
of the Ballsh-Hekal oilfield. At Delvina, the Company intends to
commence upgrades of the gas pipeline and prepare for drilling of
the first horizontal well. The execution of the Company's growth
program, negotiation of longer term export contracts and
strengthening of its financial resources is expected to result in
additional value to Stream and its shareholders. Additional
Information Stream has filed its Condensed Consolidated Interim
Financial Statements for the three months period ended May 31,
2012, related Management's Discussion and Analysis and its Annual
Information Form with Canadian securities regulatory authorities.
Copies of these documents may be obtained via www.sedar.com or the
Company's website, www.streamoilandgas.com. Forward-Looking
Statements Information in this news release respecting matters such
as plans of development or 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. The forward-looking statements contained herein
are made as of the date of this release solely for the purpose of
generally disclosing Stream's 2012 second quarter results and
outlook for 2012. 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. 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 general risks inherent in
oil and gas operations. 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. 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. Use of Boe Equivalents The oil and gas
industry commonly expresses production and reserve volumes on a
barrel of oil equivalent (Boe) basis whereby natural gas volumes
are converted at the ratio of six thousand cubic feet of natural
gas to one barrel of oil. Boe may be misleading particularly if
used in isolation. A Boe conversion ratio of 6 Mcf: 1 Bbl is based
on an energy equivalency conversion method primarily applicable at
the burner tip and does not represent a value equivalency at the
wellhead. 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. Stream Oil
& Gas Ltd. CONTACT: Contact InformationDr. Sotirios Kapotas
President & Chief Executive Officer P: (403)531-2358James
Hodgson, Chief Financial Officer P: (403) 531-2358Email
info@streamoilandgas.comWebsite: www.streamoilandgas.com
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