Stream Oil & Gas reports positive initial results from its oilfield

Waterflood Success to Increase Potential Resource Recovery by 10%
May 19, 2011 – Stream Oil & Gas Ltd. is pleased to provide an update on the progress of its enhanced recovery programs at Gorisht-Kocul and Delvina. The first phase of the enhanced oil recovery (“EOR”) program at the Gorisht-Kocul oilfield commenced with sustained water injection at the waterflood pilot area in April focused on re-pressurizing the reservoir for the future alternate gas injection. Early results and analysis have been positive, reconfirming Stream’s expectations for the project. Data from the ongoing pilot will be used for the commercial waterflood project expected to commence prior to year-end.
According to the November 30, 2010, independent reserves report, the Gorisht-Kucol oilfield was evaluated to hold approximately 459 MMbbl of discovered oil initially-in-place on a best estimate basis (low estimate: 263 MMbbl; high estimate: 801 MMbbl). The related contingent resource estimates are 10.3 MMbbl on a best estimate basis (low estimate: 2.6 MMbbl; high estimate: 40.1 MMbbl). The successful implementation of the waterflood pilot and subsequent WAG (water-alternating-gas injection) projects are expected to improve recovery by approximately 10%, converting resources to the proved and probable reserve category and increasing production for the Company.
“We’re progressing with our growth plans across all fields, but are especially excited about the prospects for our enhanced oil recovery programs and the Delvina gas development,” said Dr. Sotiris Kapotas, President and CEO. “In addition to progressing with the application of primary recovery methods on our oilfields, implementation of the Gorisht-Kocul waterflood project will help us access the potential of these reserves, significantly increasing production and asset value in the future beyond that offered by primary technologies.”
The Delvina gas field development is well underway with required services and equipment en-route for the vertical well workovers expected to commence by the end of June. The drilling of the first horizontal well in this development field is on schedule with all services and equipment scheduled for drilling prior to year end. Current and incremental production will provide the gas to fuel power generation equipment to help offset the current country wide electricity outages resulting from commercial disputes between government consumers, including Albpetrol and the current electricity supplier (CEZ Group). Stream’s retention of the power generation equipment in conjunction with the availability of fuel (gas) from Delvina and Cakran-Mollaj fields will significantly reduce the impact to the Company of these outages. Subsequent to resolution with CEZ Group, the equipment will be utilized by Stream’s power generation partner as part of their long-term generation plan utilizing Stream’s production.
In addition to the work at the Delvina gas field, current oilfield evaluations are focused on firming up the EOR programs for Stream’s three oilfields. The implementation of such programs is expected to enable further conversion of resources to reserves through the deployment of field pilot EOR projects in 2012.
Management Team Strengthened by Addition
Strengthening its management team, Stream appointed Mr. Fatbardh Ademi to the role of Deputy General Director of Albania. Mr. Ademi was the Director of the Petroleum Division of AKBN, the Albanian National Agency for Natural Resources and brings over 30 years of experience and expertise with local and western technology and business practices. 
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.

energjia.al, 24.05.2011