Stream Oil & Gas Announces Third Quarter 2013 Results

In the third quarter of 2013, Stream continued upgrades to infrastructure and work process improvements for
artificial lift systems operations in its oilfields. At the Delvina gas field, Stream completed the power
generation tie-in and commenced minor workovers of the related wells in order to clear a tubing blockage
caused by earlier gas production suspension. Notwithstanding these activities, production decreased in the
quarter as a result of higher lift equipment failures along with delays in the natural gas off-take for power
generation, which was outside of Stream’s control. The mechanical failures of the lift equipment have now
been resolved, while natural gas off-take issues are expected to be overcome soon. Stream was ready to
spud the Delvina horizontal well during the third quarter; however, the delayed delivery of the drilling rig
forced re-scheduling of the well to late December.

Production capacity continues to be approximately 2,730 gross boed (2,145 net boed to Stream); however,
operations reliability is impacting the Company’s ability to achieve this level of production. Stream is
transitioning from a development to a production operations focus, which is forecast to improve results and
return production to prior demonstrated capacity levels.

Third Quarter Highlights:

Average gross production declined to 1,598 boed compared to 1,714 boed in the third quarter 2012 (net:
1,013 and 1,033, respectively).

Realized average crude price of $72.85 per barrel, a 3% increase over $70.98 per barrel in the same
period of 2012 due to higher average Brent crude pricing.

Revenue decreased by 19% to $7.2 million compared to $8.9 million for the corresponding period in
2012 as a result of lower sales volumes.

Funds from operating income increased to $6.1 million compared to $5.6 million in 2012.

Net operating income decreased to $3.9 million from $5.7 million for the same period in 2012 due to
reduced sales during the quarter, along with higher operating costs.

Subsequent to the Quarter:

James Hodgson resigned as CFO, Director and Corporate Secretary of the Company effective October
1, 2013. Mr. Paul Plater, Vice President, Finance and Corporate Controller, has been appointed as
interim Chief Financial Officer, and Ms. Susan Soprovich has been appointed as interim Corporate
Secretary.

Outlook

Having successfully demonstrated reserves and resources value while proving production capacity, Stream
has now shifted its focus to exploit these defined reserves. As part of the transition from development to
production, Management is reorganizing its operations and supporting functions to enable production
operations excellence. Additionally, a dedicated team has been established to manage Delvina related
projects, including off-take support (e.g. generation, re-injection, stabilization, etc.), drilling and exploration
activities. These dedicated efforts will target immediate production growth in the oilfields and support gas
field development.

Cakran-Mollaj oilfield: while subsurface pumps have been installed for longer-stroke reciprocating
rod pump systems, Stream is waiting for delivery of hydraulic jacks to complete installation. Subject to
timely equipment arrival, Management expects to install six of the thirteen systems before the end of
December 2013.

Wells equipped with jet pump systems continue to operate at below acceptable online
reliability due to the disjointed operation of integrated system components, disabling
cohesive injection/production system joint operation. As part of its focused transition from
development to production centric operations, Stream is securing the appropriate resources
that are required to realize optimum operations of integrated jet pump systems.
Management expects that sustained operations at high reliability will be established by the
end of January 2014.

Gorisht-Kocul oilfield: Sufficient capacity has been installed to support incremental volumes from
ongoing interventions. Worn out progressive cavity and reciprocating rod pumps are scheduled for
replacement by the end of December 2013. An additional fourteen re-completions are scheduled for the
balance of 2014, which were delayed due to equipment deliveries.

Ballsh-Hekal oilfield: Stream continues to operate the wells previously taken over from Albpetrol,
with maintenance replacements of worn out progressive cavity pumps scheduled for this November.
o Recent changes in the Albanian Government as result of local federal elections, delayed
Stream’s full takeover of the Ballsh-Hekal field as transfer of assets was frozen in line with
local governance requirements. Management’s recent dialogue with the new administration
of Albpetrol and the Government confirmed their desire to commence transferring the
remaining assets subsequent to the next joint advisory committee meeting, which is
scheduled for November. Confident in its timely takeover, Stream has tendered acquisition
requirements to provide equipment for its 2014 development program, including several
progressive cavity pump installations.

Delvina field: the D12 well requires intervention work to release the tubing blockage, which is
awaiting third-party service. Gas production start-up is scheduled for mid-November, once
commissioning is completed. Site preparation for additional capacity installation up to 24 MW is
complete, and the power producer has sourced the equipment necessary to convert additional Stream
volumes. Installation is forecast for late in the first quarter of 2014.

The gas re-injection compressor requires incremental cooling and power stabilization.
Stream is working jointly with the thermal power generator and the local utility to realize
stable power input, which will allow the re-injection of surplus gas quantities from the D12
well after stripping liquids. Start-up of the compressor is forecasted by the end of December
2013, subject to the timely receipt of incremental components.
o While required materials and casing are in Albania, the delay of the drilling rig has
postponed spudding of the D34H1 horizontal well to late 2013.

Delvina Block: the first exploration well is scheduled to spud post rig release from D34H1 drilling,
forecast for late first quarter 2014.

Stream anticipates that its exit 2013 production guidance of approximately 2,150 net boed (1,650 bbls/d
from the oilfields plus 700 mcf/d of gas and 35 bbls/d of condensate from Delvina) will not be reached as
previously anticipated on November 30, 2013, due to the delays in (a) new equipment arrival in country due
to international availability, (b) timing of gas production on-stream, and (c) the transfer of the Ballsh-Hekal
field. Considering the demonstrated reservoir potential, Management is confident that the average expected
production guidance will be attained in early 2014.

energjia.al, 31.10.2013