CALGARY,
Oct. 30, 2014 /CNW/ - Stream Oil
& Gas Ltd. (TSX-V: SKO) (the "Company") is pleased to report
its financial and operating results for the three and nine months
ended August 31, 2014.
Q3 2014 Summary of Results
($US000s, except as noted) |
Three Months
Ended |
Nine Months Ended |
August 31, |
August 31, |
2014 |
2013 |
2014 |
2013 |
Financial |
|
|
|
|
Revenue |
8,300 |
7,210 |
24,399 |
26,588 |
Revenue, net of mineral tax royalty |
8,173 |
6,489 |
23,127 |
23,929 |
Net operating income |
6,362 |
5,462 |
17,764 |
15,459 |
Funds from (used in) operations |
251 |
6,115 |
11,285 |
17,158 |
Net income (loss) |
1,194 |
1,713 |
4,145 |
1,898 |
Per share - basic & diluted |
0.02 |
0.03 |
0.06 |
0.03 |
Cash additions to property & equipment and
exploration & evaluation assets |
(1,189) |
7,586 |
11,224 |
16,882 |
Operating |
|
|
|
|
Average production (boed): |
|
|
|
|
Gross production |
1,487 |
1,598 |
1,530 |
1,662 |
Albpetrol share |
534 |
585 |
552 |
610 |
Net production (Stream's share) |
954 |
1.013 |
978 |
1.052 |
Gross price ($/boed) |
61.06 |
72.85 |
70.47 |
74.39 |
Netback ($/boed) |
44.81 |
47.91 |
46.12 |
46.83 |
As at |
|
|
August
31,
2014 |
November 30,
2013 |
Cash |
|
|
884 |
1,962 |
Shareholders' equity |
|
|
26,138 |
21,869 |
Weighted average shares outstanding - basic
(#) |
|
|
66,887,801 |
66,686,431 |
During the nine months ended August 31, 2014, the Company focused its
resources on operating its oilfields, preparing to restart
drilling in its gas field, and attending to matters related to the
announced transaction with TransAtlantic Petroleum Ltd.
("TransAtlantic"). During the period, the Company maintained
its gross oilfield production at approximately 1,488 bpd.
Jointly with Albpetrol, the Company continued its efforts to
finalize the amending agreements for the neutralization of the
mineral royalty tax, including the elimination of the related share
production share obligation resulting from the temporary reversal
of the March 2013 agreement.
Third Quarter 2014 Highlights:
- Gross production remained stable compared to the preceding
quarter
- Gross revenue remained stable compared to the preceding
quarter
Subsequent Events:
- Subsequent to the period end, the Company entered into the
following transactions:
(1) In
the beginning of September, the Company entered into an arrangement
agreement with TransAtlantic for merging Stream into
TransAtlantic
(2) In
mid-October, the Company issued its circular relating to the
TransAtlantic transaction
Outlook
During the third quarter, the Company continued
its fields operations at prior period levels in compliance with its
obligations of the TransAtlantic transaction agreements. Management
is focused on maintaining ordinary course business operations while
supporting the completion of the contemplated transaction.
Additional Information
Stream has filed its Consolidated Financial
Statements for the three months ended August
31, 2014, and its related Management's Discussion and
Analysis with Canadian securities regulatory authorities. Copies of
these documents may be obtained via www.sedar.com or the Company's
website, www.streamoilandgas.com.
TransAtlantic Open Houses
On November 3 and
4, TransAtlantic Petroleum Ltd. (NYSE-MKT: TAT) (TSX: TNP) will
host open house events in Toronto,
Calgary and Vancouver, Canada to discuss its arrangement
with Stream. At the open houses, management of TransAtlantic
will give a brief presentation followed by a question and answer
session. Interested parties should contact Taylor Beach of TransAtlantic at
Taylor.Beach@tapcor.com or +1 (214) 265-4746 to confirm
attendance.
Toronto Open House
Monday, November 3, 2014,
12pm EST
One King West Hotel
1 King Street West, Toronto,
Ontario M5H 1A1, Canada
Lunch will be served
Calgary Open House
Tuesday, November 4, 2014,
8am MST
Fairmont Palliser Hotel
133 - 9th Avenue S.W., Calgary, Alberta T2P 2M3, Canada
Breakfast will be served
Vancouver Open House
Tuesday, November 4, 2014,
12pm PST
Fairmont Pacific Rim Hotel
1038 Canada Place, Vancouver, British
Columbia, V6C 0B9, Canada
Lunch will be served
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 2014 third quarter results
and outlook for 2014. 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.