The Delvina 12 well produced over 100 MMcf in 45 days without decline in productivity during testing. Seismic monitoring indicated a fracture distance that was over four times initial estimates at approximately 3,600 feet, indicating greater contact with the reservoir. Additional pressure growth post stabilization suggests continuing energy contribution from the reservoir beyond the initial fracture results.
Stream's initial development plan for the Delvina field includes nine horizontal wells to develop approximately 60 BCF of gas plus liquids. The application of horizontal wells typically results in 2.5 to 3.0 time production multiples from that of vertical wells. Initial results lead Management to believe that fewer wells and less capital will be required to complete the proposed development plan. Alternatively, Stream can expand its development program with increased market demand. Detailed preparations for the drilling of the first horizontal well continues with the commencement of field activities scheduled for the fourth quarter of 2012.