- Published: 21 October 2009
- Written by Editor
Stream Oil & Gas Announces Albanian Reserves of over $145.3 million
Stream Oil & Gas Ltd. (TSX-V: SKO) is pleased to announce the results of its independent reserve evaluation prepared by AJM Petroleum Consultants ("AJM") as at November 30, 2009, in accordance with the provisions of National Instrument 51-101 ('N1 51-101') and the Canadian Oil and Gas Evaluation Handbook ("COGEH").
Reserve Highlights
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- Before tax net present value of Gross Proved plus Probable reserves of $145.3 million (discounted at 10%), not accounting for US $30 million value of mineral tax neutralization allowed under Stream's Petroleum Agreements;
- Gross Proved plus Probable reserves of 17,418 Mboe
- Before tax net present value of Gross Proved reserves of
$87.0 million (discounted at 10%)
- Gross Proved oil reserves of 13,364 Mboe
"We're pleased with the results of the first 51-101 compliant reserve report, on these assets," said Dr. Sotirios Kapotas, Chief Executive Officer. "These reserves provide us with significant opportunity for growth in production as we implement our plans of development. As we move beyond incremental production techniques to initiate enhanced oil recovery technologies, we expect to see this resource increase and provide further value to our shareholders."
Implementation Planning Update
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Stream has retained the Alberta Research Council (a world recognized leader in techniques and methods for heavy oil development) as a technical specialist in areas of secondary and enhanced recovery. In 2010, Stream plans to focus on refining the contemplated EOR opportunities in addition to implementing primary production improvements through workovers and proficient reservoir management.
Stream is on track to submit the Delvina gas field development plan by year-end as well as implementing the oil development plans upon approval by Albania authorities and confirmation of funding arrangements.
Reserves Report
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AJM prepared a Reserve Estimation and Economic Evaluation ('Reserve
Report') dated October 15, 2009, with an effective date of November 30, 2009.
The Reserve Report is based on conventional reservoir production methods and
the presented version does not include the following:
a) Stream's Petroleum Agreements' provisions for neutralizing the
recently legislated 10% mineral tax of nearly US$30 million (before
tax);
b) Gorisht oil field water flood potential;
c) Ballsh & Cakran oil fields infill drilling or EOR potential;
d) Delvina gas field horizontal wells development potential.
Under N1 51-101 and COGEH, Proved reserve assignments are based on a 90 percent probability that total quantities actually recovered will equal or exceed Proved reserve estimates. Proved plus Probable reserves are the most likely case and based on a 50 percent probability that the quantities actually recovered will equal or exceed the sum of Proved plus Probable reserves estimates. The Company is not aware of any information pending from the date of this release to the effective date that would materially affect the valuation results. Stream's Reserve Committee and Board of Directors have approved the Reserve Report. Summary information is presented below from the Reserve Report:
Net Present Value of Reserves (Before Tax) as at November 30, 2009
($USD thousands) Undiscounted PV 5% PV 10% PV 15%
Proved Producing 136,198 82,212 53,758 37,480
Proved non Producing 0 0 0 0
Proved Undeveloped 102,992 58,120 33,287 18,770
Total Proved 239,190 140,332 87,044 56,250
Total Probable 174,667 94,705 58,266 39,579
Total Proved & Probable 413,857 235,037 145,312 95,829
Net Present Value of Reserves (After Tax) as at November 30, 2009
($USD thousands) Undiscounted PV 5% PV 10% PV 15%
Proved Producing 70,520 45,247 31,092 22,640
Proved non Producing 0 0 0 0
Proved Undeveloped 51,688 28,254 14,965 7,029
Total Proved 122,208 73,501 46,057 29,670
Total Probable 89,035 48,915 30,817 21,603
Total Proved & Probable 211,244 122,416 76,874 51,273
The estimated values disclosed do not represent fair market value.
Reserves Summary as at November 30, 2009
Oil Natural Gas NGLs Total
Gross Net Gross Net Gross Net Gross Net
Mbbl Mbbl mmcf mmcf Mbbl Mbbl Mboe Mboe
Proved 8,861 5,619 451 245 19 9 8,955 5,669
Producing
Proved 0 0 0 0 0 0 0 0
Non
Producing
Proved 4,503 4,411 1,878 1,607 79 65 4,895 4,744
Undeveloped
Total
Proved 13,364 10,030 2,329 1,853 97 74 13,849 10,413
Total
Probable 3,304 3,275 823 733 128 123 3,569 3,520
Total
Proved &
Probable 16,667 13,305 3,152 2,586 225 197 17,418 13,933
Gross reserves are the total of the Company's working interest share
before deduction of royalties and other government share. Net reserves are
gross reserves net of royalty interests owned by others.
The reserve values are based on the table of prices below. Oil prices are
the equivalent price of Brent Oil discounted for quality based on local market
conditions. Gas prices are based on the contract applicable.
Price Forecast
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Brent Oil Real Oil Gas Condensate
($USD/bbl) ($USD/bbl) ($USD/mcf) ($USD/bbl)
-------------------------------------------------------------------------
2009 1 mo 64.00 38.40 9.70 89.00
2010 69.00 42.24 9.70 89.00
2011 74.00 46.20 9.89 90.78
2012 79.00 50.31 10.09 92.60
2013 84.00 54.34 10.29 94.46
2014 97.00 58.93 10.50 96.34
2015 94.00 63.51 10.71 98.26
2016 99.00 68.22 10.92 100.23
2017 99.00 69.60 11.14 102.23
2018 99.00 70.98 11.37 104.28
2019+ avg 99.00 82.74 11.59 106.36
Stream's year-end date is November 30, 2009. The Company expects to file its 2009 NI 51-101 reserves disclosure forms: Form 51-101F1 - Statement of Reserves Data and Other Oil and Gas Information, Form 51-101F2 - Report of Independent Qualified Reserves Evaluator, and Form 51-101F3 - Report of Management and Directors on Oil and Gas Disclosure on or before its 2009 filing deadline of March 30, 2010. At which time these filings can be accessed electronically on Stream's website or on the SEDAR website at www.sedar.com.
Advisories
Forward-Looking Statements
Certain information regarding the Company contained herein constitutes forward-looking information and statements and financial outlooks (collectively, "forward-looking statements") under the meaning of applicable securities laws, including Canadian Securities Administrators' National Instrument 51-102 Continuous Disclosure Obligations. Forward-looking statements relate to future events or future performance and reflect management's current expectations and assumptions. Such forward-looking statements reflect management's current beliefs and are based on assumptions made by and information currently available to the Company.
The forward-looking statements contained herein are made as of the date of this News Release solely for the purpose of generally disclosing Stream's reserves volumes and net present value of its reserves as at November 30, 2009. 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. 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. The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement.
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 oil fields and a gas/condensate field in Albania. The Company's strategy is to use new technology and enhanced oil recovery techniques to significantly increase production of these under-developed reservoirs.
Under separate 25-year Petroleum Agreements, (with five-year extension options) Stream has the rights to take-over the operations of all wells in the Gorischt-Kocul, Ballsh-Hekaj, and Cakran-Mollaj oil fields as well as the Delvina gas field, and produce the remaining reserves. Takeover of the wells is being completed in stages.
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.
Contacts
Dr. Sotirios Kapotas
Chief Executive Officer
P: (604) 642-6168
Email This email address is being protected from spambots. You need JavaScript enabled to view it.
Angela Huxham
Chief Financial Officer
P: (604) 642-6168
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Website: www.streamoilandgas.com
