Stream Announces Second Quarter 2012 Results

    




 Achieves Increases in Production, Revenue and Net Operating Income 

 CALGARY, July 30, 2012 /CNW/ - Stream Oil & Gas Ltd.  (the  "Company") is pleased to report its financial and operating results for  the three months ended May 31, 2012. 

  

 Q2 2012 Summary of Results  





                          Three Months Ended               Six Months Ended

    (US$000s, except as   May 31,    May 31,        May 31,         May 31,
    noted)                   2012       2011           2012            2011

    Financial                                                              

      Revenue               8,046      4,486         12,892           6,563

      Net operating         6,573      2,831          9,999           4,073
      income

      Funds from (used      5,482        949          3,206           1,062
      in) operations

      Net income            5,030      1,271          7,335           1,225

        Per share - basic    0.08       0.02           0.11            0.02

        Per share -          0.08       0.02           0.11            0.02
        diluted

      Additions to         10,842      4,133         19,097           9,141
      property, plant &
      equipment

    Operating                                                              

      Average production    1,141        902          1,001             690
      (boed)

      Average price         71.66      66.84          68.34           57.28
      ($/boed)

      Netback ($/boed)      57.05      44.08          51.72           35.55

                                                               

    As at                                      May 31, 2012   Nov. 30, 2011

    Cash                                              1,370             500

    Shareholders' equity                             32,071          24,572

    Weighted average                                                       
    shares outstanding
    (#)

      Basic                                      66,373,344      63,948,763

      Fully diluted                              67,193,898      64,584,631






  

 Second Quarter Highlights: 




        --  Increased average net production by 26% to 1,141 net boed
            compared to 902 net boed in the second quarter 2011.

        --  Realized average net crude price of $71.66 per barrel, a 7%
            increase over $66.84 per barrel in 2011, due to higher
            negotiated crude prices and securing a long-term export sales
            agreement.

        --  Increased revenue by 78% to $8.0 million for the second quarter
            of 2012 compared to $4.5 million for the corresponding period
            in 2011.

        --  Net operating income increased to $6.6 million from $2.8
            million during the corresponding period in 2011.

        --  Attained positive production flow rates from the Delvina 12
            workover, producing over 100 MMcf in 45 days (average 2.2
            MMcf/d) without decline in productivity.

        --  Completed the installation of nine jet pump units at the
            Cakran-Mollaj oilfield, increasing production from each well to
            approximately 100 bbls/d.

        --  Successfully completed the gas re-injection compressor testing
            for the Delvina gas/condensate field subsequent to the quarter
            to allow near future gas and liquid/condensate production.




 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 2012 work plan incorporates three key elements: a) continued  production growth; b) continued reserves growth; and c) internal  corporate and organizational development to match the Company's  growth.  Management is committed to execute its 2012 growth program,  subject to the availability of resources and services.   During the  second half of 2012, Stream plans to install up to six additional jet  pumps at Cakran-Mollaj, continue workovers and waterflood activities at  Gorisht-Kocul and prepare for the takeover of the Ballsh-Hekal  oilfield. At Delvina, the Company intends to commence upgrades of the  gas pipeline and prepare for drilling of the first horizontal well. 

 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 May 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 second 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.  

   

Stream Oil & Gas Ltd.


CONTACT:  Contact InformationDr. Sotirios Kapotas President & Chief Executive Officer   P: [phone]James Hodgson, Chief Financial Officer   P: [phone]Email [e-mail]: www.streamoilandgas.com 


    

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