Achieves Increases in Production, Revenues and Net
Operating Income
CALGARY,
March 28, 2013 /CNW/ - Stream Oil
& Gas Ltd. (TSXV: SKO) (the "Company") is pleased to report its
financial and operating results for the year ended November 30, 2012.
2012 Summary of Results
|
|
|
|
Three Months Ended
November 30, |
Year Ended
November 30, |
(US$000s, except as noted) |
2012 |
2011 |
2012 |
2011 |
Financial |
|
|
|
|
|
Revenue |
7,781 |
4,741 |
28,677 |
14,738 |
|
Net operating income (loss) |
2,586 |
3,214 |
18,250 |
8,697 |
|
Funds from operations |
4,566 |
8,955 |
13,339 |
8,796 |
|
Net income (loss) |
(8,668) |
1,765 |
1,975 |
2,757 |
|
|
Per share - basic & diluted |
(0.13) |
0.03 |
0.03 |
0.04 |
|
Additions to property & equipment
and exploration & evaluation assets |
3,329 |
9,467 |
29,953 |
18,610 |
Operating |
|
|
|
|
|
Average production (boed) |
1,259 |
800 |
1,159 |
814 |
|
Average price ($/boed) |
68.76 |
67.50 |
67.33 |
62.11 |
|
Netback ($/boed) |
36.10 |
44.46 |
46.01 |
41.10 |
|
|
|
|
|
As at |
|
|
Nov. 30,
2012 |
Nov. 30,
2011 |
Cash and cash equivalents |
|
|
1,147 |
500 |
Shareholders' equity |
|
|
26,946 |
24,572 |
Weighted average shares outstanding -
basic (#) |
|
|
66,503,921 |
64,147,454 |
2012 Highlights:
- Average net production increased by 42% to 1,159 net boed
compared to 814 net boed in 2011.
- Realized price increased by 8% to $67.33 per boe from $62.11 per boe in 2011.
- Revenue increased by 95% to $28.7
million compared to $14.7
million for 2011.
- Net operating income increased by 110% to $18.3 million from $8.7
million.
- Net income decreased to $2.0
million from $2.8 million in
2011.
- Executed a $20 million facility
with Raiffeisen Bank Albania in the first quarter.
- Received government confirmation for Company's takeover of the
oil and gas inter-field pipelines, enabling further development and
future deployment of enhanced oil recovery ("EOR") programs.
- Acquired a gas reinjection compressor for the Delvina
gas/condensate field to allow near future gas and liquid/condensate
production alternatives.
Consistent with International Financial
Reporting Standards, the Company booked a deferred income tax
expense of $8,896,000 related its
Albanian operations during the fourth quarter of 2012. The
expense is a result of the Company's utilization of its cost
recovery pools due to increased production and an increase in net
income before tax in Albania. The amount does not represent
actual income taxes owed, but is derived by the resulting
difference between the carrying values of property and equipment in
comparison to available tax cost pools.
Fourth Quarter Highlights:
- Average net production was 1,259 net boed compared to 800 net
boed in the fourth quarter 2011.
- Realized average net crude price was $68.76 per barrel, a 2% increase over
$67.50 per barrel in the same period
2011.
- Increased revenue by 68% to $7.8
million for the fourth quarter of 2012 compared to
$4.7 million for the corresponding
period in 2011.
- Net income decreased to a loss of $8.7
million from a profit of $3.2
million in 2011.
- Completed 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.
- Continued the Gorisht-Kocul waterflood commercial pilot
projects.
Activities Subsequent to
Year-End:
- Stream executed a gas sales contract with Thermo Energy for the
purchase of up to 6.5 MMcf/d natural gas from the Delvina gas
field, which will be used in the generation of electricity in
Albania
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 sister structures adjacent to its
producing Delvina field.
Stream's 2013 work plan incorporates two key
elements: a) continued production growth; and b) developing local
operating capability. Management is committed to execute its
2013 growth program, subject to the availability of resources and
services, which includes activities as follows:
- During the first quarter of 2013, Stream continued its focus on
rehabilitating ALS surface production equipment to return to peak
production capability, while rehabilitating power/pipeline
infrastructure to support production volumes;
- During the second quarter of 2013, Stream plans to add
additional expatriate personnel in order to improve operations
reliability and control, maximizing and stabilizing production
volumes. Central treating and incremental storage facilities
will also be improved to allow uninterrupted production;
- In the Cakran-Mollaj oilfield, three additional jet pumps and
eight new reactivations with RRP systems will be commissioned. In
addition, central treating facility conversion to continuous
operation is expected to be completed;
- In the Gorisht-Kocul oilfield, twelve PCP systems
interventions, twenty RRP interventions and twelve new
reactivations with RRP systems are planned to be commissioned in
2013. The Company also expects to complete central treating
facility conversion to continuous operation, and augment facilities
for the incremental water treating and recycling. Commencing
near year end, Stream plans to expand the existing waterflood
commercial pilots into commercial projects;
- Stream anticipates finalizing the takeover of the Ballsh-Hekal
oilfield and plans to commence the field campaign, including twenty
well reactivations, and twenty eight RRP and PCP
interventions. At the same time, the Company expects
to integrate the Ballsh-Hekal treatment facility into
the Cakran-Mollaj central facilities;
- In the Delvina gas/condensate field, Stream expects to complete
the tie-in of gas supply to the power generator in the second
quarter, commencing partial monetization of Stream's 2.5 MMcf/d gas
capacity. Management expects to commence drilling of the first
horizontal well and expanding the field facilities in time to
accept increased production;
- In the Delvina block, the MT/gravity surveys will conclude
during the year, assisting with locating the exploration well
potential drilling sites. The Company will complete preparations
for future drilling; and
- Continue the field development geoscience program to reconfirm
the previously identified EOR exploitation opportunities and impact
future potential resource conversion, which is currently not
captured in Stream's reserve reports.
Taking into consideration factors impacting
production in 2012, Management resolved to focus on improving
systems reliability, resolving operational resources constraints
and improving exploitation of existing infrastructure during the
first half of 2013. As a result, the Company plans the
aggressive execution of its 2013 oilfield work programs to commence
mid-year. Stream anticipates that this work program will be
completed within 2013 as services and equipment are staged to allow
efficient execution. The execution of the Company's growth
program, continued development of long-term export contracts and
strengthening of financial resources is expected to result in
additional value to Stream and its shareholders.
Additional Information
Stream has filed its audited Consolidated
Financial Statements for the year ended November 30, 2012, and 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.
_______________
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 annual results and
outlook for 2013. 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.