Stream Oil signs gas sales with gas fired power plant

TIRANA, Feb. 24 – Canadian-based Stream Oil & Gas Ltd. says it has signed a gas sales agreement to sell gas production from its Delvina field to Thermo Energy Albania Shpk Thermo Energy intends to develop and build a 24 megawatt thermal power plant in Delvina, Albania, utilize Stream’s gas production and sell the generated electricity to KESH power utilityand other clients.
The Agreement is key to Stream’s plans to develop the potential of its substantial gas resource, which is expected to result in future growth in production and reserves. Gas delivery is expected to commence in the second quarter of 2013.
“The signing of this agreement is a major step forward in the development of the Delvina field,” said Dr. Sotirios Kapotas, President and Chief Executive Officer. “In addition to providing benefit to Stream in terms of revenue and justifying the drilling of the horizontal well, the construction of the plant will assist in creating in-country electricity generation for Albania and its people.”
This is the first natural gas fired thermal power plant to be constructed in Albania. The local Ministry of Environment welcomes green power and the stable delivery of electrical power to the country. With a growing demand for power, Albania currently relies on approximately 95% of its electricity from existing hydropower plants with additional power imported to balance the country’s power demand and backup production during dry and drought periods.
Stream Oil & Gas Ltd. is focused on the re-activation and re-development of three oilfields and a gas/condensate field in Albania.