Stream Oil & Gas Ltd. update and first quarterly results

VANCOUVER, May 5 – Stream Oil &
Gas Ltd., formerly L.G.R. Resources Ltd.,
has filed its first quarter financial statements
and management’s discussion & analysis
with the Canadian securities commissions.
In its summary of Albanian operations it
reports that it is currently conducting an
evaluation work program to identify opportunities.
As of February 29, 2008, no proven
reserves or value can be attributed to its
properties. Stream Oil & Gas has taken over
23 producing wells since beginning operations
in November 2007. A well rehabilitation
program is ongoing with a scope to understand
well behavior and define appropriate
methods to increase crude oil production.
The company’s agreement with
Albpetrol Sh.A (“Albpetrol”) provides additional
revenues.
A 3D passive seismic program is running
over the Delvina gas field in order to map
the existing production area and define upside
potential.
Preliminary results are encouraging and
indicate a more than sufficient micro-seismic
event presence during the first three
months of operations. This
will allow construction of a
subsurface model earlier than
previously expected, around
mid-2008.
Company officials say their
objective is to grow production
by using enhanced recovery
techniques for carbonate
reservoirs such as the radial jet
developed in Alberta for the
foothills projects. The Company
is preparing to develop
the Delvina gas field with infill
drilling and plans to use the
gas for power generation.
Management is also discussing a number
of local alliances to maximize value.
Over the previous four months, Stream
Oil & Gas has spent $543,478 developing
its Albanian properties.
Operating, sales and transportations costs
were $192,645 and administrative expenses
totaled $548,939, resulting in a total operating
loss for the period of $298,565.
As at February 29, 2008, the balance of
Stream Oil & Gas’s cash
committed to property development
under its agreements
with Albpetrol was US $
3,489,688.
On a consolidated basis,
the company’s current working
capital is about $2.2 million.
The company has plans to
continue well take-over and
rehabilitation work in order
to optimize production for
the remainder of 2008. For
the second and third quarters
of 2008 another 50 producing
and non-producing wells are to be added
to the portfolio of the company. Rehabilitation
work, in addition to basic work that is
currently underway, will include pump replacement
and radial jet method testing.
Based on the number of wells, the planned
budget for the remainder of the year is US
$15 to $20 million. The company intends to
raise additional financing required through
a private placement following the initial rehabilitation
results.
The company also plans to complete a
full review in accordance with NI 51-101
standards by the end of 2008 to update and
determine the corresponding recoverable reserves.
Stream, the company’s wholly owned
Cayman Islands subsidiary, is engaged in
oil and gas exploration, development and
production. Stream was founded to acquire
interests in petroleum producing fields in
Albania and elsewhere. On August 8, 2007,
Albpetrol, the Albanian state exploration
and production company, transferred to
Stream four license agreements with Albania’s
National Petroleum Agency. These
License Agreements gave Stream access to
three fully developed onshore oil fields and
one partially developed onshore gas field.
At the time, each field was operated by
Albpetrol. On August 8, 2007, Stream also
entered into four petroleum agreements
with Albpetrol which, together with the License
Agreements, govern Stream’s rights
in respect to the three oil fields and the gas
field. (Tirana Times Staff)