Stream Oil & Gas Ltd. reports a non-brokered private placement to raise gross proceeds of up to CDN$10,000,000 by the issuance of up to 6,500,000 Units at a price of $1.50 per Unit. Each Unit consists of one common share of the Company (a 'Common Share') and one-half of one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant will entitle the holder to acquire an additional Common Share at an exercise price of $2.00 per Warrant during the first 12 month period following closing of the private placement, and at an exercise price of $2.50 per Warrant during the subsequent 12 month period.

Stream has the right to force the exercise of the warrants at any time if the shares trade at $2.75 or higher over a 20 consecutive day period for the first 12 month period and at $3.75 or higher over a 20 consecutive day period for the second 12 month period. All securities issued in connection with the private placement are subject to a statutory hold period of four months plus one day from the date of issuance in accordance with applicable securities legislation. The Company will pay finders' fees subject to Exchange policies.

'These funds will provide the ability to accelerate our development program and initiate the testing of secondary recovery technologies, which have the potential to significantly expand the value of Stream's underdeveloped assets,' said Dr. Sotirios Kapotas, President and CEO. 'Activity is ramping up as we move into the last quarter of 2010: we have an aggressive 100-day plan to workover 20+ wells in the Cakran-Mollaj field and expect to take over the entire Gorisht field in order to begin water flood implementation.'

The private placement is subject to final agreements and approval of securities regulatory authorities and the TSX Venture Exchange. The net proceeds of the private placement will be used for Stream's production and development activities on its properties in Albania and for general working capital purposes.

Currently, the Company has increased production to approximately 1,000 boed, an increase of 462 boed from 2009. Stream expects to exit 2010 with production in the range of 1,800 to 2,200 gross boed as a result of additional well recompletions and further field takeovers (NB: Stream net volumes are less royalties of approximately 38%).

Dr. Kapotas continued, 'These are exciting times for the Company. Our hard work over the past year is now being reflected in increasing production as we focus on further accelerating our growth.'

Tags: Stream Oil & Gas Ltd.