CALGARY,
Feb. 3, 2014 /CNW/ - Stream Oil &
Gas Ltd. (TSXV: SKO) ("Stream" or the "Company") is pleased to
provide an update regarding the status of its Delvina gas
project. The drilling rig for the first Delvina horizontal
gas development well (D34H1) arrived in Albania, cleared customs and is en route to
the Delvina gas field for an expected spud date in March 2014. Concurrently, Stream is
pursuing various strategies to bring the existing Delvina D12 and
D4 gas wells on line.
Delvina Horizontal Well Status
The hydraulic rig for drilling of the
D34H1 gas well arrived at the Durres port in
Albania at the end of January 2014. Over the past few months,
Stream completed all preparatory work at the wellsite, including
the necessary local support facilities. The D34H1 well is expected
to spud during March 2014 and test in
June 2014 after finalization of
drilling and completions operations.
The produced residue gas from the D34H1 well
will be delivered to the power generation unit installed at Delvina
through a new 500 metre pipeline connection. At the same time,
Thermo Energy Albania is planning to increase the megawatt power
potential of the unit. Condensate production from the well
will be also sold initially to the local market. This will enable a
longer term test of the well to provide additional assurance of the
well's production potential.
Delvina Gas Status
Stream reopened the Delvina D12
well in mid-2013 to commence production and gas sales
following completion of the first stage of the thermal power plant
in late 2013. During workover operations an obstruction was
encountered in the completion string that could not be removed
through solvent injection. The Company is currently focused
on attempting to clear the blockage by disengaging the packer. In
addition, Stream completed upgrades to the Delvina D4
well during late 2013 and a program is in its final stages
to bring the well back on line. If work on both wells is
successful, production could commence prior to the end of
February 2014.
"The dedicated Delvina gas operations team has
been focused to repairing the existing vertical gas wells and
ensuring the field is prepared for horizontal drilling," said Dr.
Kapotas, President and Chief Executive Officer. "Despite delays
experienced in 2013, we believe that we now have all the necessary
equipment and experience in place to move ahead with Delvina gas
production in the near future. The drilling rig for the horizontal
well will later be used to drill our Delvina Block exploration well later in
2014."
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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 results and status of its
Delvina gas project. 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.
SOURCE Stream Oil & Gas Ltd.