Achieves Increases in Production, Revenue and Net Operating Income
CALGARY , Oct. 30, 2012 /CNW/ - Stream Oil & Gas Ltd. (SKO.V) (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.