Could be transformative for Stream the next time they announce their production. As followers of this board know, Bobwins has been in close contact with CFO and estimated that 6 jet jumps could add 540 bopd of incremental production with only a 2-4% royalty on incremental non-pre-existing production.
I have not seen anyone else on the board-o-sphere pick up that a key value driver for Stream is the ultra-low royalties on incremental production. There is a slide on their presentation which shows production increasing to 12,500 bopd (LT guidance) and royalties as a % of revenue decreasing in similar fashion. This is what sold me on the Stream story.
Quite a coup for Stream to land this opportunity. Not quite shooting fish in a barrel but the oil is there and just requires modern recovery techniques to increase production. As production increases Stream could get leverage to sell production to larger buyers so hopefully the discount to Brent that Stream gets from Greek oil borker will decrease as well in 2013.