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Tirana, February 9 2011 NOA – Stream Oil & Gas Ltd. (TSX-V: SKO) (the "Company") is pleased to announce the results of its November 30, 2010, independent reserves evaluation. Evaluations were conducted by AJM Petroleum Consultants ("AJM"), Stream's independent reserve evaluators, in accordance with the provisions of National Instrument 51-101 ('NI51-101') and the Canadian Oil and Gas Evaluation Handbook ("COGEH").
2010 Reserves Summary (Net Share to Stream)
Total proved reserves increased 38% to 14.3 MMboe from 10.4 MMboe in 2009
Proved plus probable reserves increased 34% to 18.7 MMboe from 13.9 MMboe in 2009
Proved reserves comprise 76% of total proved plus probable reserves, a slight increase from 2009
Possible reserves of 16.7 MMboe were added to the evaluation for total reserves of 35.4 MMboe
Reserve value increased 119% from year-end 2009 on a total proved basis & 75% on a total proved and probable basis, discounted at 10%
Net asset value is $2.99 per common share on a proved basis and $3.99 per common share on a proved plus probable basis, based on the independently estimated reserve value, outstanding debt and the number of outstanding shares as of this release
The 2010 reserves growth is primarily attributable to approved Plans of Development, the take-over of the Cakran-Mollaj oilfield and the successful implementation of well reactivations. This is reflected in the increase in proved and probable categories, the upgrade of probable reserves into proved reserves and the addition of possible reserves. In addition, contingent resources and resources initially-in-place were assigned to Stream's oil and gas fields.
"We're extremely pleased with the results of our reserves evaluation," said Dr. Sotirios Kapotas, President and CEO. "Our progress in Albania is providing substantial growth potential for the Company and its shareholders as shown by the increase across all reserve and resource categories. The fields' development plans outline the strategic direction to capture these resources through primary and secondary techniques, which is expected to result in significant future value."
All of Stream's 2010 reserves estimates are based on conventional primary recovery methods only and does not include upside potential for the following:
Petroleum Agreements' provisions for neutralizing the 10% mineral tax;
Gorisht-Kocul oilfield waterflood potential;
Ballsh-Hekal and Cakran-Mollaj oilfield infill drilling or enhanced oil recovery ("EOR") potential;
Delvina gas field horizontal well development potential.
e.t/NOA
