CALGARY, April 14, 2014 /CNW/ - Stream Oil & Gas Ltd.
(TSX-V: SKO) ("Stream" or the "Company") announces that the first
Delvina horizontal well (D34H1) has been spud in the Delvina gas
field in Albania.
Stream forecasts well production of approximately 5 MMcf/d for
first year before decline begins, at a total cost of approximately
$15.0 million. The D34H1 well
is expected to start testing in June
2014.
Combined with production from the existing
vertical wells, Stream expects 2014 Delvina production of
approximately 7 MMcf/d. By 2017, development at Delvina is
forecast to deliver approximately 20 MMcf/d of fuel gas with
declines of 16% per year thereafter. Prospects from adjoining zones
are expected to provide additional future gas supplies at
sufficient rates to offset the declines from the D34H1 zone.
Neither these prospects, nor the three sister structures previously
identified through Stream's geological work, are included in the
Company's reserves. As at November 30,
2013, reserves for the Delvina gas field were evaluated as
follows:
| |
|
|
|
Delvina Gas Field Net Reserves - 2013 |
|
|
|
| November
30, |
|
|
|
Proved |
|
|
Probable |
|
|
P+P |
|
|
Possible |
|
|
Total
P+P+P |
| |
Gas (MMcf) |
|
|
|
7,976 |
|
|
16,119 |
|
|
24,095 |
|
|
30,402 |
|
|
54,497 |
| |
Condensate (Mbbl) |
|
|
|
348 |
|
|
971 |
|
|
1,319 |
|
|
2,268 |
|
|
3,587 |
| Total BOED |
|
|
|
1,677 |
|
|
3,657 |
|
|
5,334 |
|
|
7,335 |
|
|
12,670 |
| NPV
($M), 10% Discount |
|
|
|
$31,077 |
|
|
$86,336 |
|
|
$117,413 |
|
|
$197,367 |
|
|
$314,780 |
The produced residue gas from the D34H1 well
will be delivered to the third party power generation facility. At
the same time, Thermo Energy is planning to increase its generation
potential from the currently installed 2 megawatts (that consumes
approximately 600Mcf/d) to align with Stream's future
production. Associated condensate production will be sold to
the local market in the short-term; as related volumes increase, it
will be allocated to higher revenue yielding export sales.
"The drilling of this horizontal well represents
a key step in the development of the Delvina field," said Dr.
Sotirios Kapotas, President and
Chief Executive Officer. "The ability to access its
significant gas reserves will provide a much needed gas supply to
Albania, and further benefit to
Stream."
_____________
About Stream Oil & Gas Ltd.
Stream Oil & Gas Ltd. is a Canadian-based
emerging oil and gas production, development and exploration
company focused on the re-activation and re-development of three
oilfields and a gas/condensate field in Albania. The Company's strategy is to use
proven technology, incremental and enhanced oil recovery techniques
to significantly increase production and reserves.
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
SOURCE Stream Oil & Gas Ltd.