Achieves Increases in Production, Revenues and Net
Operating Income
CALGARY,
April 29, 2013 /CNW/ - Stream Oil
& Gas Ltd. (TSX-V: SKO) (the "Company") is pleased to report
its financial and operating results for the three months ended
February 28, 2013.
Q1 2013 Summary of Results
|
|
Three Months Ended |
|
|
|
February 28, |
|
February 29, |
(US$000s, except as noted) |
|
|
2013 |
|
2012* |
Financial |
|
|
|
|
|
|
Revenue |
|
|
8,195 |
|
4,846 |
|
Net operating income |
|
|
4,958 |
|
3,426 |
|
Funds from (used in) operations |
|
|
6,101 |
|
(2,276) |
|
Net income (loss) after income
taxes |
|
|
(255) |
|
(67) |
|
|
Per share - basic & diluted |
|
|
0.00 |
|
0.00 |
|
Additions to property & equipment
and
exploration & evaluation assets |
|
|
5,360 |
|
8,255 |
Operating |
|
|
|
|
|
|
Average production (boed) |
|
|
1,351 |
|
860 |
|
Average price ($/boed) |
|
|
68.26 |
|
65.03 |
|
Netback ($/boed) |
|
|
48.07 |
|
45.64 |
|
|
|
|
|
|
|
As at |
|
|
Feb. 28,
2013 |
|
Nov. 30, 2012 |
Cash and cash equivalents |
|
|
547 |
|
2,632 |
Shareholders' equity |
|
|
26,829 |
|
26,946 |
Weighted average
shares outstanding - basic (#) |
|
|
66,637,801 |
|
66,147,801 |
* restated to reflect deferred income tax expense |
First Quarter Highlights:
- Average net production was 1,351 net boed compared to 860 net
boed in the first quarter 2012
- Realized average net crude price was $68.26 per barrel, a 5% increase over
$65.03 per barrel in the same period
of 2012
- Revenue increased by 71% to $8.2
million compared to $4.8
million for the corresponding period in 2012
- Net operating income increased to $5.0
million from $3.4 million in
2012
- Surface facilities rehabilitation continued at the
Cakran-Mollaj and Gorisht-Kocul fields with commissioning
activities expected throughout the second quarter of 2013
- The Gorisht-Kocul field waterflood commercial pilot projects
continued throughout the quarter, inclusive of infrastructure
rehabilitation in support of further expansion
- A gas sales contract was executed for the purchase of up to 6.5
MMcf/d natural gas from the Delvina gas field, which will be used
for third-party generation of electricity in Albania. Stream related construction for
Phase One continued in support of the expected generation equipment
start-up within the second quarter
- Preparations continued to restart Delvina gas production for
generation feedstock within the second quarter
Subsequent to Quarter-End:
- Stream executed a $20.0 million
prepayment agreement for crude oil sales with Trafigura Pte
Ltd.
Outlook
Stream's 2013 work plan incorporates two key
elements: a) developing local operating capability; and b)
continued production growth. Consistent with its priority to
reach sustained, previously demonstrated production levels, Stream
deliberately delayed its growth programs into the second half of
the year in order to provide a strong operating foundation.
In addition, these deferrals allow better capital utilization as
the field campaign will benefit from incremental preparations
combined with improved staffing experience and levels.
During the second quarter, Stream will focus
efforts on improving production operations processes including the
recruitment of associated expertise. The training of
operating resources combined with incremental foreign staffing
efforts is forecast to shortly return Stream's production to its
prior demonstrated capacity.
Stream forecasts an aggressive execution of its
2013 work programs to commence mid-year and be completed within
2013 as services and equipment are appropriately staged to allow
efficient execution. Management is committed to execute its
2013 growth program, subject to the availability of resources and
services. Additional details related to the Company's 2013
program are available in the 'Outlook' section of the first quarter
2013 Management's Discussion and Analysis.
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 three month period ended February 28, 2013, 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.
_______________
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 2013 first quarter 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.