Stream Oil & Gas Ltd. (TSXV:SKO) announced that it has signed an agreement to sell gas production from its Delvina field to Thermo Energy Albania Shpk.
As quoted in the press release:
The Agreement provides for the delivery of sufficient gas to power the 24 MW facility at 100% capacity. The initial start-up unit of 2.2 MW of the plant will require approximately 0.5 MMcf/d of gas from Stream, increasing to 6.5 MMcf/d when the plant is fully operational. Gas delivery is expected to commence in the second quarter of 2013. The Agreement has a term of one year, at which time the parties will meet to negotiate a longer term agreement based on market pricing and corresponding quantities. Stream will receive US$8.90/mcf for its gas in the first year; once the Agreement is extended, the new price will be negotiated based on European indexed natural gas prices.
Stream’s President and CEO, Sotirios Kapotas, said:
In addition to providing benefit to Stream in terms of revenue and justifying the drilling of the horizontal well, the construction of the plant will assist in creating in-country electricity generation for Albania and its people.