TSX-V: SKO
VANCOUVER, Oct. 14 /CNW/ - Stream Oil & Gas Ltd. (the "Company"), is pleased to announce positive results from the Poyry Energy Srl "Delvina Gas Power Plant Project" scoping study evaluating the installation of a 150MW gas fired power plant on the Delvina Gas Field in southern Albania.
Poyry Energy is a global consulting and engineering company and a worldwide leader in the energy sector. Poyry's core areas of expertise are: management consulting, hydropower, renewable energy, power & heat, oil & gas. In addition, Poyry holds a strong position within engineering and project services for nuclear technology, transmission and distribution as well as industrial processes.
The Delvina Power Plant Project includes the conversion into electricity by a combined cycle plant located in close proximity to the Delvina gas field. Initially, the size of this plant would to be around 100 MW, with an extension to 150 MW at a later stage. The gas consumption of a 100 MW power plant at base load is around 480 MNcm3/d, which is in line with Company's gas production forecast from the Delvina gas field.
According to the study, overall investment cost for a 100MW station is approximately 90 M Euro ($126M USD) and with a life time of 20 years is economic even under the assumption of current local pricing for gas at around $15Nmcf which represents three fourths of the operating costs. The results of this scoping study suggest that an investment a gas fired power plant as planned the Company in Albania is viable because:
- Albania needs to diversify its primary energy supply for electricity
generation. The country currently depends on hydropower plants with
varying generation capacity caused by fluctuating precipitation
- Albania needs additional domestic power generation capacity due to
high demand growth
- Capacity shortages are likely to result in high electricity prices
- There is an attractive investment climate for foreign direct
investment in the power sector
Furthermore the study indicates:
Attractive investment climate in Albania - Many investors in the
power sector are targeting the country and recent developments show
that the Albanian government is favoring foreign investment. The
current state of the generation, transmission and distribution assets
requires significant investment.
Electricity Regulator and permitting scheme have been defined - The
existence of an independent electricity regulating agency and the
availability of formal permitting procedures are encouraging signs
for investors in the power sector.
The Company has initiated the necessary steps in order to obtain the required permits and has been in contact with several strategic partners in order to consider its options to proceed to a full feasibility study.
About Stream Oil & Gas
Stream is a Canadian-based emerging oil and gas production, development and exploration company with assets in Albania focusing on the re-activation and re-development of three oil fields, and a gas and condensate field, all of which are in production.
Stream has entered into Petroleum Agreements with Albpetrol Sh.A. the Albanian state exploration and production company, and is conducting a staged evaluation, takeover and redevelopment program under four separate 25-year license agreements with Albania's National Petroleum Agency. Under these Agreements, Stream has the rights to take-over the operations of all wells in the Gorischt-Kocul, Ballsh-Hekaj, and Cakran-Mollaj oil fields, and the Delvina gas field, and produce the remaining reserves. Takeover of the wells is being completed in stages.
Under the Agreements Stream is entitled to 100% of the incremental production and a share of current baseline production. The operations are subject to royalties of between 2% and 6% based on an R factor of revenues and petroleum costs.
Further information on Stream and its oil and gas properties is included in the Company's Information Circular dated February 12, 2008 available at www.sedar.com.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking statements, which relate to future events or future performance and reflect management's current expectations and assumptions. Such forward-looking statements reflect management's current beliefs and are based on assumptions made by and information currently available to the Company. 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. 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.
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