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Stream Oil & Gas Ltd. announced that it has signed a gas sales agreement to sell gas production from its Delvina field to Thermo Energy Albania Shpk (“Thermo Energy”). Thermo Energy intends to develop and build a 24 megawatt (“MW”) thermal power plant in Delvina, Albania, utilize Stream’s gas production and sell the generated electricity to KESH (an Albanian power company) and other clients. The Agreement is key to Stream’s plans to develop the potential of its substantial gas resource, which is expected to result in future growth in production and reserves.
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. “The signing of this agreement is a major step forward in the development of the Delvina field,” said Dr. Sotirios Kapotas, President and Chief Executive Officer. “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.”
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