Agreement Provides Funds for 2013 Capital
Program
CALGARY, April 24, 2013 /CNW/ - Stream Oil & Gas Ltd.
(TSX-V: SKO) ("Stream" or the "Company") is pleased to announce
that it has signed a prepayment agreement for crude sales (the
"Prepayment Agreement") to provide oil production from its Albanian
oilfields to Trafigura Pte Ltd. ("Trafigura"). Trafigura has agreed
on the disbursement of a first tranche in an amount of USD$7.0 million to prepay part of the purchase
price of oil sales under the Prepayment Agreement. The Prepayment
Agreement is a crucial step for Stream's 2013 development plans,
providing additional capital required to expand production of the
Cakran-Mollaj, Gorisht-Kocul, Ballsh-Hekal and Delvina field
projects.
Management anticipates receiving the first
USD$7.0 million prepayment by
May 1, 2013 and further draws
periodically up to a total of USD$20.0
million. The prepayments will be discharged by Stream's
delivery of crude oil to Trafigura in accordance with and at the
times and in the quantities as set out the crude sales contract
between the two companies. The obligation related to the
total amount received by Stream must be discharged by August 31, 2015. Commencing
October 31, 2013, the Company is
required to begin repayment of any amounts received as of that
date.
The crude sales contract has a term of three
years at which time it may be extended upon written agreement by
both parties.
"We're extremely pleased with this agreement,"
said Dr. Sotirios Kapotas, President
and Chief Executive Officer. "Stream has a strong
relationship with Trafigura as an existing customer, which allows
us to access international markets and receive improved oil prices
compared to in-country sales. The prepayment funds are
expected to provide the additional capital above available cash
flow that is needed for us to successfully implement our 2013
development growth plans."
Stream's 2013 activities are focused on oilfield
development, improving Albanian operating capability and Delvina
gas field exploration. Successful implementation is expected
to provide growth in production and cash flow as well as
significant reserve additions as reserves and resources are
converted to proved and probable reserves. With funding
secured, Management plans an aggressive execution of its 2013
oilfield work programs to commence mid-year, the results of which
are expected to increase company and shareholder value.
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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 agreement with Trafigura
and expected 2013 plans. 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.
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.