ENP Newswire -
Release date- 31072014 - CALGARY -
During the three and six months ended
The Company was able to sustain its gross oilfield production at 1522 bpd gross, while acquiring comprehensive understanding of weaknesses in its existing operating practices including field instrumentation constraints, focusing to understand suboptimum utilization of the installed equipment. The discrete knowledge gained during the operating practices audit, provides the Company the basis for further production operations improvements.
Following the repairs and improvement of select equipment, constrained to date by capital availability, the Company will be able to continue its oilfields production growth, leveraging the recently observed production levels exceeding 1,200 bpd net, continuing towards the prior demonstrated 2,400 boed net levels.
The Company commenced drilling its first horizontal well in its Delvina gas field, spudding in
Fabrication of speciality equipment required for the intervention of the existing vertical well to clear a tubing obstruction, is nearly complete, enabling field execution in early August. The vertical well has prior demonstrated to produce in excess of 2,500 MCFD with 50 bbl/MMCF of condensate.
Concurrent with advances in its fields, accounting for the capital constraints, Company's management committed considerable efforts towards improving its balance sheet, including pursuing additional capital by way of equity, debt and farm out considerations. The Company continues its corporate development and fundraising focus, expecting to enable the completion of the 2014 program as prior contemplated.
Jointly with its partner Albpetrol (national oil company), the Company continued to finalize the amending agreements for the neutralization of the royalty tax including the elimination of the related share production share obligation resulting from the temporary reversal of the
Second Quarter Highlights:
Gross production remained stable at 1,522 boed in the three months ended
The Company paid
Management's recent refocus to production growth at its oilfields, to get back to previous demonstrated production levels, will be leveraged once more capital is available to drive further liquids growth in addition to production from the gas field activities. Plans for the balance of 2014 include the following activities:
Management will continue its efforts on initiatives to address liquidity concerns;
Cakran-Mollaj: Maximize the jet pump systems' productivity by revisiting a well by well planning and production management, including revision and deployment of updated operating practices. Install the recently received in country six hydraulic long lift RRP systems, focus on reduction of water production and evaluate alternate water disposals, eliminating infield re-injection to reduce water production. The objective is to return the field to prior demonstrated production levels and then focus to bring more wells online to continue the production growth;
Gorisht-Kocul: Continue waterflood infrastructure expansion along with recompletions with PCPs and hydraulic RRP lift systems;
Ballsh-Hekal: Finalize the takeover of the remainder of the field, re-validate primary targets and commence recompletion with PCPs;
Delvina: Once drilling of D34H1 is completed and tested, supply increased gas volumes to
Continue the evaluation and early preparations for the drilling of infill wells in the oilfields, leveraging the deviated/horizontal drilling approach to access more of the reservoir and
Increase port storage facilities to enable larger export cargos with the objective of increasing sales price through decreasing unit transport costs and leveraging increased sales volume
Stream has filed its Consolidated Financial Statements for the three months ended
Information in this news release respecting matters such as plans of development or exploration, reserves estimates, production estimates and targets, development costs, work programs and budgets constitute forward-looking information (collectively, 'forward-looking statements') under the meaning of applicable securities laws, including Canadian Securities Administrators' National Instrument 51-102 Continuous Disclosure Obligations.
Such forward-looking information is based on certain assumptions, including the availability of funds for capital expenditures necessary to construct the infrastructure required for future development, a favorable political and economic operating environment, a consistent rate of well re completions and costs, success rates, production performance and build-up periods for well re-completions that are consistent with or an improvement over historical levels.
The forward-looking statements contained herein are made as of the date of this release solely for the purpose of generally disclosing Stream's 2014 second quarter results and outlook for 2014. Investors are cautioned that these forward-looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected.
Such forward looking information reflect management's current beliefs and are based on assumptions made by and information currently available to the Company, and involves known and unknown risks, uncertainties and other factors which may cause the actual costs and results of the Company and its operations to be materially different from estimated costs or results expressed or implied by such forward-looking statements.
Such factors include, among others political and economic risks associated with foreign operations, general risks inherent in petroleum operations, risks associated with equipment procurement and equipment failure, availability of qualified personnel, risks associated with transportation, currency and exchange rate fluctuations and other general risks inherent in oil and gas operations.
Although the Company has attempted to take into account important factors that could cause actual costs or results to differ materially, there may be other factors that cause costs and timing of the Company's program or results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information.
These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances except as required under applicable securities legislation.
Use of Boe Equivalents
The oil and gas industry commonly expresses production and reserve volumes on a barrel of oil equivalent (Boe) basis whereby natural gas volumes are converted at the ratio of six thousand cubic feet of natural gas to one barrel of oil. Boe may be misleading particularly if used in isolation. A Boe conversion ratio of 6 Mcf: 1 Bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
President & Chief Executive Officer
Tel: (403) 531-2358
Interim Corporate Secretary
Tel: (403) 874-2903
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