Current Operational Highlights

Stream is currently conducting an 18-month initial field reactivation and redevelopment program to maximize reservoir performance and substantially increase production through advanced well re-activation and rehabilitation methods. In the gas field, a 24 month evaluation and exploration program is in place and a seismic program to update mapping and reserve estimates is now in progress.

The Company also plans to complete a full review of its four oil and gas fields in accordance with NI 51-101standards by the end of 2009, to determine recoverable reserves.

Stream conducted a well rehabilitation program including radial jetting tests to understand well behavior and define appropriate methods to enhance and increase crude oil production.

A 3D passive seismic program was run over the Delvina gas field to map the existing production area and define upside potential. Results were encouraging and indicated more than sufficient micro-seismic event presence to create a subsurface model. The Company is currently conducting a micro seismic fracture-monitoring program in the Cakran field.

The following is a summary of the activity on Stream’s four Albanian properties:

Delvina gas and condensate field- discovered in 1987, a gas limestone field with a depth of 2800-3500m, currently producing from two wells out of four. The Company upgraded the infrastructure and optimized production control of the gas and condensate. Gas tests to understand phase behaviour and a PVT analysis study were also completed. Stream management is evaluating the results of passive seismic and 2D seismic work for mapping and estimating upside potential.

Subject to additional funding, Stream reserved a rig to do rehabilitation work in this field and the Cakran-Mollaj field.

Field production, when the refinery operates, is about 22,000 cubic meters gas per day and 22 bopd condensate. Of this production, 6,000 cubic meters of gas per day and 8 bopd of condensate are attributable to Stream as of February 28, 2009.

The Company is evaluating various options including the development of the field by drilling extra production wells for gas power generation and upgrading condensate production and storage.

Ballsh-Hekaj heavy oil field- discovered in 1966, is an 11 API limestone field currently producing from 81 wells out of 212. The Company is conducting a staged rehabilitation program on 16 producing wells in the field and has taken over another eight for reactivation. Field production is 550 bop/d, of which 79 bop/d are attributable to Stream as February 28, 2009.

Gorischt-Kocul heavy oil field- discovered in 1965, is a 15 API limestone field currently producing from 135 wells out of 295. This carbonate field still has good potential to increase production. Well depths range from 400-1250 m.

The Company is now running a staged rehabilitation program on 13 producing wells in the field and has taken over another 14 for reactivation. Field production is around 925 bop/d, of which 70 bop/d are attributable to Stream as of February 28, 2009.

Cakran-Mollaj medium oil field- discovered in 1977, is a 25 API limestone field currently producing from 27 wells out of 65. This is the deepest of the carbonate oil fields at 2650-3700 m. Management’s goal for the project is to increase production three to five fold by using modern technology.

The Company performed flow improvement tests and optimized performance on two wells. Infrastructure upgrades are in progress. The Company has reserved a rig, subject to fund raising, in order start a staged rehabilitation program on the 14 producing wells that operate in the field and reactivate another taken over recently. Field production is 650 bop/d, of which 76 bop/d are attributable to Stream as at February 28, 2009.

In addition to the rehabilitation program on 14 producing wells, the Company has take over another 20 wells for reactivation.

Fracture monitoring is underway on key wells. The Company engaged Seismotech in order to deploy equipment and monitor microfracing.

For 2009 plans include full take-over of the remaining field and the corresponding gathering and processing stations.

2008 Activity Highlights

Completed reverse takeover, effective April 4, 2008
Listed first on the CNQ and then on the TSX Venture Exchange
Established operations which include over 70 employees in Albania
Took over 44 producing oil and gas wells
More than doubled initial production share and revenues through on going well takeovers, work-overs and rehabilitation work
Renegotiated price contract from fixed price low of $29/bbl to Brent-based formula
Capital expenditures on were $4,350,012 and included $1,046,327 on the seismic program, $2,550,055 on work-overs and upgrades.
Gathered data to understand well behavior, for development plan
Seismic program in Delvina completed and final results are under revision
Cakran microseismic monitoring completed and data analysis is in progress.
Development plan extension for the crude oil fields to September 30 2009 approved by AKBN and Albpetrol.
Completed a pre-feasibility study for a gas-fired power plant
Cleaned up well sites to meet environmental standards

Preliminary Results

Success ratio of work overs and methods used varied from well to well
Perforations and PCP pumps determined as key to production improvement
Radial jetting tested with variable success must be used selectively in the future
Build up period for production is longer than expected
Casing integrity on existing wells is not as good as was thought and existing completion information was unreliable
Some wells (especially in Cakran) are improving with time due to flow control methods
Work-overs must be carefully designed during development
Gas cap must be understood and its usage considered in the future

Reactivation and Development Program

The 2009 Work Program and Budget (WP&B) objectives are to reach 500 bopd net by year-end.

Based on the success ratio in some wells and assuming that all the new requested wells to be taken over will have similar success rations the Company plans to take-over 47 wells by Q3-2009.

On-going technical initiatives include:

Proposals to test wells in Cakran and Delvina
Contracting a 60-ton work over rig to complete the work
Finalize the reservoir model in Delvina (Passive) and re-estimate reserves
Understand the Cakran reservoir and fracture distribution
Provide a full reservoir study for Cakran in order to consider drilling new wells for the Development stage.
Investigate partnership financing for the gas power plant
Prepare the Plan of Development by September 2009

Production and revenue

Under its Petroleum Agreements, Stream has the right to takeover a total of 574 wells, 244 of which are currently in production. During Stream’s first year of operations, Stream took over a total of 87 wells, 44 of which are currently producing.
From these 44 producing wells, Stream produced a total of 134,933 barrels (bbls) over the thirteen month period ended November 30, 2008. Stream’s share of this production was 52,101 bbls. Stream’s share of daily production currently averages 230 bbls per day.
In addition, over the past 13 months, the Company produced about 117 mcf of gas, of which 53 mcf was attributed to Stream; and 7,027 bbls of condensate, 2,204 bbls of which were attributed to Stream.
Stream delivers its oil and gas production to a local refinery via Albpetrol’s treatment facilities. Except for condensate sales, Albpetrol (and indirectly, the Refinery) was Stream’s only customer. Total revenues net of royalties from Stream’s share of production were $2,834,723 million during the Company’s first 13 months of operations.
Over the past year, Stream received an average of about $38.38/bbl of oil, $15.83/ mcf for gas and $84.22 / bbl for condensate. During the first quarter the Company received a fixed price for oil of about $29.00/bbl. Effective August 1, the Company entered into a new agreement based on the following pricing formula: Price = 100/1.8 + (Brent average – 100)/3 – 2.5 USD/bbl
This price formula was in effect until the end of December and is currently being renegotiated with Albpetrol and the new refinery owners.