Stream Oil & Gas Ltd SOGAF

RE: Talked with company

[Bobwins]

Forgot to add that I asked if the jet pumps are paid for and he said yes.  That is important because the extra 500bpd production that should come from the jet pumps will turn to revs fairly quickly.  All the pumps should be installed and operating by year end.  There is a lag between production and revs but Stream should see increased revs by early 2013.

500bpd X $70 = $35,000 per day from the 6 new jet pumps

200boepd X $100= $20,000 per day from condensate after installation of re-injection compressor and restart of Delvina 12.  Compressor is still on a boat so this will come later, probably installed and operating by late January 2013.

These two new rev sources should allow Stream to continue investing in their continuing waterflood project and minimize the need for new financing besides the horizontal well.