Exclusive: Stream Provides Update on Delvina Project. Quadrupled Gas Production!!!

Stream Oil & Gas Ltd provided on April 30, 2012 an update on its Delvina project, composed of the Delvina field and Delvina Block.
The Delvina field is estimated to hold approximately 184 BCF of gas initially-in-place (”GIIP”) according to Stream’s 2010 independent reserve report. In late 2011, interventions of the two existing vertical wells were completed with acid fracturing of Delvina 12 and injectivity testing of Delvina 4 for future liquids production. Delvina 12 commenced flowback testing in January 2012, and was subsequently shut in for pressure build-up.
The Delvina 12 well produced over 100 MMcf in 45 days without decline in productivity during testing. Seismic monitoring indicated a fracture distance that was over four times initial estimates at approximately 3,600 feet, indicating greater contact with the reservoir. Additional pressure growth post stabilization suggests continuing energy contribution from the reservoir beyond the initial fracture results.
Stream’s initial development plan for the Delvina field includes nine horizontal wells to develop approximately 60 BCF of gas plus liquids. The application of horizontal wells typically results in 2.5 to 3.0 time production multiples from that of vertical wells. Initial results lead Management to believe that fewer wells and less capital will be required to complete the proposed development plan. Alternatively, Stream can expand its development program with increased market demand. Detailed preparations for the drilling of the first horizontal well continues with the commencement of field activities scheduled for the fourth quarter of 2012.
Delvina facilities rehabilitation continues in preparation for increased liquids production subsequent to the drilling of the horizontal well, allowing Stream to capture Brent pricing and significantly increase revenue. These activities are expected to provide production for future markets including power generation, oilfield enhanced oil recovery utilization and industrial consumers.
The Delvina Block holds additional prospects that are estimated to constitute over 400 BCF of GIIP as per the 2010 independent reserves report. Initiated in 2010, Phase II of the exploration program continues with the interpretation of incremental passive seismic data. Detailed planning is underway for 2013 field activities, including further geological work to identify the location for a possible exploration well.
Stream’s activities in Delvina are expected to provide significant reserve additions for the Company as reserves and resources are converted to proved and probable reserves. With this conversion, Management anticipates growth in production and cash flow, resulting in increased shareholder value.

energjia.al, 04.05.2012