Achieves Increases in Production, Revenue and Net
Operating Income
CALGARY,
Oct. 30, 2012 /CNW/ - Stream Oil
& Gas Ltd. (TSX-V: SKO) (the "Company") is pleased to report
its financial and operating results for the three months ended
August 31, 2012.
Q3 2012 Summary of Results
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Three Months
Ended |
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Nine Months
Ended |
(US$000s, except as
noted) |
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Aug 31,
2012 |
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Aug 31,
2011 |
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Aug 31,
2012 |
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Aug 31,
2011 |
Financial |
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Revenue |
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8,004 |
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3,434 |
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20,896 |
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9,997 |
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Net operating income |
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5,665 |
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1,871 |
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15,664 |
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5,943 |
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Funds from (used in) operations |
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5,567 |
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(1,221) |
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8,773 |
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(159) |
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Net income |
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3,309 |
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(232) |
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10,643 |
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993 |
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Per share - basic |
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0.05 |
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(0.00) |
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0.16 |
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0.02 |
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Per share - diluted |
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0.05 |
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(0.00) |
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0.16 |
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0.02 |
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Additions to property, plant & equipment |
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7,528 |
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2 |
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26,624 |
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9,143 |
Operating |
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Average production (boed) |
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1,373 |
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1,048 |
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1,011 |
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690 |
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Average price ($/boed) |
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63.88 |
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70.55 |
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66,86 |
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60.56 |
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Netback ($/boed) |
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48,58 |
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50.29 |
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50.85 |
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39.98 |
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As at |
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Aug
31, 2012 |
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Nov.
30, 2011 |
Cash |
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1,628 |
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500 |
Shareholders' equity |
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35,494 |
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24,572 |
Weighted average
shares outstanding (#) |
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Basic |
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66,306,892 |
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63,948,763 |
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Fully diluted |
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67,164,125 |
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64,584,631 |
Third Quarter Highlights:
- Average net production grew to 1,373 net boed compared to 1,048
net boed in the third quarter 2011.
- Realized average net crude price of $63.88 per barrel, a 9% decrease over
$70.55 per barrel in the same period
2011, due to a lower Brent oil price.
- Increased revenue by 133% to $8.0
million for the third quarter of 2012 compared to
$3.4 million for the corresponding
period in 2011.
- Net operating income increased to $5.7
million from $1.9 million in
2011.
- Commenced work on the installation of an additional six jet
pump units at the Cakran-Mollaj oilfield, targeting increasing
individual well production to approximately 100 bbls/d, and
continued the first phase of the Gorisht-Kocul waterflood
project.
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 seismically mapped structures
adjacent to its producing Delvina gas condensate field.
Stream's 2012 work plan incorporates three key
elements: a) continued production growth; b) reserves growth; and
c) internal corporate/organizational development. Management
is committed to execute its 2012 growth program, subject to the
availability of resources and services. During the fourth
quarter of 2012, Stream plans to commission six additional jet
pumps at Cakran-Mollaj, continue workovers and waterflood
activities at Gorisht-Kocul and prepare for the complete takeover
of the Ballsh-Hekal oilfield. At Delvina, the Company intends to
continue preparations for drilling of the first horizontal well,
including securing a drilling rig and materials required for the
drilling and completion of the well in the first half of 2013.
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
August 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 third 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.
SOURCE Stream Oil & Gas Ltd.