Achieves Increases in Production, Revenues and Net Operating Income
CALGARY, March 29, 2012 /CNW/ - Stream Oil & Gas Ltd. (TSX-V: SKO) (the "Company") is pleased to report its financial and operating results for the year ended November 30, 2011.
2011 Summary of Results
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ThreeMonthsEnded
November 30, |
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Year Ended
November 30, |
(US
00s, except as noted) |
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2011 |
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2010 |
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2011 |
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2010 |
| Financial |
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Revenue |
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4,741 |
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705 |
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14,738 |
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5,967 |
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Net operating income (loss) |
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3,214 |
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(499) |
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9,158 |
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3,147 |
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Funds from (used in) operations |
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9,527 |
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141 |
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9,045 |
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95 |
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Net income (loss) |
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2,035 |
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(2,335) |
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2,642 |
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(1,545) |
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Per share - basic |
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0.03 |
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(0.04) |
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0.04 |
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(0.03) |
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Per share - diluted |
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0.03 |
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(0.04) |
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0.04 |
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(0.03) |
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Additions to property, plant & equipment |
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8,834 |
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6,360 |
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17,977 |
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6,677 |
| Operating |
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Average production (boed) |
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800 |
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445 |
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814 |
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350 |
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Average price ($/boed) |
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67.50 |
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38.70 |
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62.11 |
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38.70 |
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Netback ($/boed) |
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44.46 |
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24.68 |
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41.10 |
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24.90 |
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| As at |
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Nov. 30, 2011 |
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Nov. 30, 2010 |
| Cash and cash equivalents |
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500 |
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9,493 |
| Shareholders' equity |
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24,196 |
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20,744 |
| Weighted average shares outstanding (#) |
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Basic |
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64,646,171 |
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51,141,013 |
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Fully diluted |
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65,515,993 |
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51,141,013 |
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2011 Achievements:
- Average net production increased by 133% to 814 net boed compared to 350 net boed in 2010
- Average production was impacted by temporary production outages required for the conversion of existing producing wells into higher yielding installations (e.g. jet pumps in Cakran-Mollaj)
- The Company was unable to immediately capture the sustained benefits of increased production as facilities' capacity constraints impacted production from the new subsurface installations
- Realized price increased by 60% to $62.11 per boe from $38.70 per boe in 2010
- Concluded negotiations for higher heavier crude prices for export shipments at an average price of 68% of Brent versus local Albania market prices of 60%, which significantly contributed to higher prices and revenue
- Secured crude oil export facilities at Petrolifera under a long term agreement, providing regular export sales with reliable clients
- Revenue increased by 147% to $14.7 million for 2011 compared to $6.0 million for the corresponding period in 2010
- Net operating income increased by 191% to $9.2 million from $3.1 million
- Net income was $2.6 million, reversing the $1.5 million loss of 2010
Fourth Quarter Highlights:
- Increased average net production by 80% to 800 net boed compared to 445 net boed in the fourth quarter 2010
- Average production was impacted due to temporary production outages and facilities' capacity constraints
- Increased average crude price at $67.50 per barrel, a 74% increase over the $38.70 per barrel in 2010
- This was due to the factors stated previously related to negotiated higher heavier crude prices and securing regular export sales
- Increased revenue by 572% to $4.7 million for the fourth quarter of 2011 compared to
.7 million for the corresponding period in 2010
- Net operating income increased to $3.2 million from a deficit
.5 million in 2010
- Net income was $2.0 million, which was a substantial improvement over the $2.3 million loss of 2010
- Concluded negotiations for a US$20 million debt facility with Raiffeisen Bank Albania, and began the documentation and due diligence process to finalize the arrangement and secure funds
- Worked over the Delvina gas/condensate well, enabling subsequent fracing operations in order to start production testing in the first quarter of 2012
- Received government acceptance of the Company's 2012 work plan and budget
- Continued geosciences work to upgrade reserves values as a result of confirmed future conversions
Activities Subsequent to the Fourth Quarter:
- Completed key 2011 subsurface program elements in early 2012 and continued focus on removing existing facilities constraints
- Executed the US$20 million facility with Raiffeisen Bank Albania and cleared all conditions precedent on December 27, 2011
- Completed the Delvina 12 gas well fracture on December 31, 2011, and began well clean up and testing in January 2012
- Exited the calendar year with nine jet pumps installed and commissioned in the Cakran-Mollaj field
- Received government confirmation of Company's takeover of the oil and gas interfield pipelines, enabling further development and future deployment of enhanced oil recovery ("EOR") programs
- Continued detailed planning for the takeover of the Ballsh-Hekal field
- Acquired a gas reinjection compressor for the Delvina gas/condensate field to allow near future gas and liquid/condensate production
- Completed the 2011 reserves evaluation and released results on March 14, 2012
Outlook
Stream realized significant production growth in 2011. In 2012, the Company will continue to focus on production growth and cash flow generation through the application of improved recovery methods. At the same time, Stream will concentrate 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.
Additional Information
Stream has filed its audited Consolidated Financial Statements for the year ended November 30, 2011, 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.
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