Stream Oil & Gas Ltd SOGAF

RE:quarterly numbers pretty good

[naive_investor]

Tank, I heard that electric pumps are operating more consistently than diesel pumps. Thus, they are replacing diesel pumps with electric ones. I understand reservoir is not an issue, it's more of an operating inconsistency, which appears fixable. They have also worked on tanks, pipelines and gathering and processing system. All the investment has been made, now it's time to operate that field consistenetly. I think  2013 exit  production of 1950 bbls/d is a conservative estimate. It seems like they have had enough experience with the Cackran field to understand it better. It may be a couple more months. I expect them to reach the target 1950 bbls/ day by October. I also think that possible production increase from from the other two fields are not included in that estimate. The greater upside is in gas sale, which is in high demand and gas is trading at least $10/ mcf. Once the first unit is up and running, it's a completely different story. IMO, that will be the inflection point. I also speculate funding for Thermo Energy won't be a problem as Albania needs more electricity as they are almost 100% dependent on electricty generated from hydro, which the government predicted could be a problem during winter times as water level is expected go down not being able to produce enough. The next few gensets would be installed in a few months. The gas upside is not priced in the sp. 700 mcf of gas and 35 bbls of condensate would fetch $2.5 MM net per year. Hope everything will work out soon.