Stream to sell crude oil to ARMO

CALGARY, April 18, 2011 – Canadian-based Stream Oil & Gas Ltd. says that it has reached an agreement with ARMO, the refinery located in Ballsh, Albania, to supply crude from its three oilfields. Some 75% of Brent monthly average for Cakran-Mollaj oil; and 60% of Brent monthly average for Gorisht-Kocul and Ballsh-Hekal oil. The majority of the Company’s production comes from the Cakran-Mollaj field, resulting in Stream’s average oil sales price exceeding 70% of monthly average Brent. This, combined with lower local transportation costs, will significantly increase cash flow, thereby reducing Stream’s need for additional external capital.
“We are very excited at finalizing this agreement as it strengthens Stream’s financial position as we continue to invest in our growth,” said Dr. Sotirios Kapotas, President and CEO. “Our original cash flow forecast was based on realizing prices at 60% of Brent; the greater than 10% net revenue increase will add directly to our self funding capacity.”
Stream’s plans for 2011 focus on production growth in all three crude oil production fields, which will better position the Company to attain higher prices for its products in the future. Higher production volumes will enable negotiating longer term sales contracts.