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Published on 10/12/2010 in the Prospect News PIPE Daily.

Stream Oil & Gas orchestrates C$10 million private placement of units

Non-brokered offering funds development program, technology testing

By Devika Patel

Knoxville, Tenn., Oct. 12 - Stream Oil & Gas Ltd. priced a non-brokered private placement of units on Monday.

The company will sell up to 6.5 million units of one common share and one half-share warrant at C$1.50 apiece for a maximum of about C$10 million.

Each whole two-year warrant will be exercisable at C$2.00 in the first year and at C$2.50 thereafter. The strike prices reflect 19.76% and 49.7% premiums, respectively, to the Oct. 8 closing share price of C$1.67.

"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," president and chief executive officer Sotirios Kapotas said in a press release.

"Activity is ramping up as we move into the last quarter of 2010: We have an aggressive 100-day plan to workover 20 plus wells in the Cakran-Mollaj field and expect to take over the entire Gorisht field in order to begin water flood implementation.

"These are exciting times for the company," Kapotas continued.

"Our hard work over the past year is now being reflected in increasing production as we focus on further accelerating our growth."

Vancouver, B.C.-based Stream Oil & Gas is an emerging oil and gas production, development and exploration company.

Issuer:Stream Oil & Gas Ltd.
Issue:Units of one common share and one half-share warrant
Amount:C$10 million (maximum)
Units:6.5 million
Price:C$1.50
Warrants:One half-share warrant per unit
Warrant expiration:Two years
Warrant strike price:C$2.00 in the first year, C$2.50 thereafter
Agent:Non-brokered
Pricing date:Oct. 11
Stock symbol:TSX Venture: SKO
Stock price:C$1.67 at close Oct. 8
Market capitalization:C$82.94 million

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