RE: Financial statements out this week? Yup!https://tmx.quotemedia.com/article.php?newsid=35205751&qm_symbol=SKO
Stream Oil & Gas Announces Q3 2010 Results
Oct. 28, 2010 (Canada NewsWire Group) --
VANCOUVER, Oct. 28 /CNW/ - Stream Oil & Gas Ltd. (TSX-V: SKO) (the"Company") is pleased to announce results for its third quarter endedAugust 31, 2010.
| Summary of Financial Results |
Three months ended August 31 |
Nine months ended August 31 |
| ($ US) |
2010 |
2009 |
2010 |
2009 |
| Oil & gas revenue |
2,653,456 |
790,536 |
5,262,484 |
2,365,799 |
| Net operating income |
1,725,533 |
577,536 |
3,646,002 |
1,344,966 |
| Income (loss) for period |
813,026 |
(396,165) |
790,273 |
(866,375) |
| Funds from operations |
912,462 |
(11,436) |
(46,114) |
(3,642) |
| Earnings (loss) per share |
.02 |
(
.01) |
.02 |
.00 |
| Additions to property, plant and equipment |
1,097,345 |
371,372 |
2,466,703 |
1,295,601 |
Q3 Achievements:
- Stream's net share of average production increased to 404 boed compared to 240 boed in 2009
- Current gross production is approximately 1,000 boed, an increase of 462 boed from 2009
- The average price per barrel of oil was $38.70 compared to $40.00 in the third quarter of 2009
- Revenue increased to $2.7 million, an increase of 236%
- Operating netback increased to $25.74 boed as compared to $22.71 boed in 2009
Subsequent to the quarter:
- Final approval for the execution of the Plans of Development for the Ballsh-Hekal, Cakran-Mollaj and Gorisht-Kocul oil fields was received by the Albanian Ministry of Economy, Trade and Energy
- A non-brokered private placement for gross proceeds of CDN$10 million was announced
"We're pleased with the quarterly results as we effectively operate ourassets, increasing production, revenue and cash flow," said Dr.Sotirios Kapotas, President and CEO "The continued successful executionof our growth strategy is expected to provide substantial productionincreases over the next several years, unlocking additional shareholdervalue."
Year-to-date revenue increased to $5.3 million, an increase of 122%compared to the first nine months of 2009. Total working capital as ofthe end of the third quarter was $2.4 million and is currently about$1.2 million, including $1.0 million in cash and crude oil inventoryvalued at
.5 million. The Company continues to maintain positiveoperating cash flow from oil sales to several local customers who payin advance.
The Company spent $2.5 million on capital expenditures for the ninemonths ended August 31, 2010, mainly on workovers and reactivations.Stream is studying several funding options to accelerate productiongrowth; the proceeds from the private placement are expected to beutilized in further development activities.
Operational Update
Management's strategy is to focus on high growth, low risk productionincreases utilizing standard Western technology and improved oilrecovery ("EOR") methods. These methods include improved artificiallift, integrated reservoir management and production optimization.
Over the third quarter of 2010, Stream continued to implement its highgrowth, low risk development plans, resulting in the followingachievements:
- Local services have been secured for workovers and the water injection pilot at the Gorisht oil field
- The Company submitted Phase II of the Exploration Plan for the Delvina gas field in August, and presented it to the Albanian authorities in October 2010.
Under its Petroleum Agreements, Stream has the right to takeover all theexisting wells and facilities in its oil and gas fields (approximately600 wells). Of these wells, 244 are producing with the remainderrequiring some type of intervention. By the end of the third quarter of2010, the Company had taken over a total of 124 wells, of which 53 wereproducing at time of takeover.
Outlook
Stream will continue to implement its development plans during theremainder of 2010. This includes approximately 20+ well workovers forthe Cakran-Mollaj oil field, the takeover of all producing wells in theGorisht-Kocul oil field and initiation of the first phase of a waterflood pilot, and the staged takeover of the Ballsh-Hekal oil field. TheCompany will take over an additional 268 wells at the Gorisht-Kocul oilfield, of which 122 are producing. At Ballsh-Hekal, an additional 189are expected to be taken over during the latter part of 2010 and into2011, of which 66 are currently producing.
Management has developed plans for oil exports as allowed under theCompany's Petroleum Agreements. Exports will begin as soon as volumespermit optimum export sales contracts. This is expected to provideadditional benefit to the Company through the addition of new marketsand higher realized crude oil prices.
Through the successful implementation of its development strategy,Stream expects to exit 2010 with gross field operating production inthe range of 1,800 to 2,200 boed as a result of additional wellrecompletions and further field takeovers
For further information, please refer to the Company's interim financialstatements and MD&A on SEDAR: www.sedar.com and on the Company's website: www.streamoilandgas.com
Forward-Looking Statements
Certain information regarding the Company contained herein constitutesforward-looking information and statements and financial outlooks(collectively, "forward-looking statements") under the meaning ofapplicable securities laws, including Canadian SecuritiesAdministrators' National Instrument 51-102 Continuous DisclosureObligations. Forward-looking statements relate to future events orfuture performance and reflect management's current expectations andassumptions. Such forward-looking statements reflect management'scurrent beliefs and are based on assumptions made by and informationcurrently available to the Company
About Stream Oil & Gas Ltd.
Stream Oil & Gas Ltd. is a Canadian-based emerging oil and gasproduction, development and exploration company focused on there-activation and re-development of three oil fields and agas/condensate field in Albania. The Company's strategy is to useproven technology, incremental and enhanced oil recovery techniques tosignificantly increase production and reserves.
Neither TSX Venture Exchange nor its Regulation Services Provider (asthat term is defined in the policies of the TSX Venture Exchange)accepts responsibility for the adequacy or accuracy of this release.
%SEDAR: 00022735E